SIU Freezes R24.8m in Assets Linked to NLC Grant Fraud for Rio Olympics Campaign

In July 2016, the South African Sports Confederation and Olympic Committee (SASCOC) submitted a grant application to the NLC on behalf of the newly formed foundation.

In a significant move against corruption in South Africa’s public sector, the Special Tribunal has granted the Special Investigating Unit (SIU) a preservation order to freeze assets valued at approximately R24.8 million. These assets are believed to be linked to the alleged misappropriation of funds allocated by the National Lotteries Commission (NLC) under the guise of supporting the 2016 Rio Olympics “Roadshow Send-Off” campaign.

The SIU’s Investigation: A Deepening Scandal

The judgment stems from an intensive investigation by the SIU, which uncovered what it described as a “coordinated scheme” designed to siphon off millions meant to promote Olympic awareness across South Africa. Central to this scheme was the Mshandukani Foundation, a non-profit organisation (NPO) that was established just four months before it received the multi-million rand grant from the NLC.

In July 2016, the South African Sports Confederation and Olympic Committee (SASCOC) submitted a grant application to the NLC on behalf of the newly formed foundation. The proposal claimed that the funds would be used to support national events aimed at raising awareness and enthusiasm for South African athletes competing in the 2016 Rio Olympic Games.

Despite the foundation's inexperience and lack of any demonstrable track record, the NLC approved and released the full R24.98 million in just six days—an unusually swift disbursement for such a large sum. The money was transferred in three separate tranches to the NPO’s bank account.

Alleged Misappropriation and Asset Freeze

Rather than being used for its intended purpose, the funds were allegedly diverted almost immediately to individuals and entities linked to senior NLC officials:

• R15.35 million was paid to Ironbridge Travel Agency, a company tied to former NLC Chief Operations Officer (COO) Phillemon Letwaba. The SIU alleges that the funds were then spent on luxury vehicles, livestock, and various personal expenses.

• R7.23 million was transferred to Mshandukani Holdings, a private entity controlled by Mashudu Shandukani, who is a member of the Mshandukani Foundation.

• Additionally, direct payments of R450,000 and R600,000 were allegedly made to Letwaba and former NLC legal manager Tsietsi Maselwa, respectively.

The Special Tribunal’s preservation order has frozen several assets allegedly acquired using the stolen funds, including two luxury vehicles and a high-value Powerstar truck.

Mandate and Next Steps

The asset freeze is part of the SIU’s broader strategy to implement investigation outcomes and enforce financial accountability. Under the Special Investigating Units and Special Tribunals Act No. 74 of 1996, the SIU is empowered to bring civil proceedings to recover public funds lost through corruption, fraud, or maladministration. The agency also refers any criminal findings to the National Prosecuting Authority (NPA) for further legal action.

According to the SIU, this case underscores the ongoing vulnerability of public grant systems to exploitation by corrupt officials and complicit entities. The Unit emphasized its commitment to holding wrongdoers accountable and restoring trust in public institutions.

Broader Implications for the NLC

This case adds to a growing list of controversies surrounding the NLC and its grant management practices. Investigations in recent years have revealed numerous instances of misappropriated funds, questionable grant approvals, and systemic governance failures.

Calls for structural reform and improved oversight mechanisms within the NLC are intensifying. Civil society watchdogs and government stakeholders alike have emphasized the need for transparency, due diligence, and stricter controls to prevent the abuse of public funds intended for developmental and community-based initiatives.

As the legal process unfolds, all eyes remain on the NPA and SIU to ensure that those implicated in the misuse of public funds are brought to justice.