SIU Freezes R2.7m Linked to Misused NLC Grant in Divorce Settlement Case

According to the SIU, the order prevents Chauke from withdrawing or transferring the funds while the Unit finalises a review application seeking to cancel the grant funding that enabled the land purchase.

The Special Investigating Unit (SIU) has secured a preservation order from the Special Tribunal to freeze R2.7 million, including accrued interest, stemming from the sale of land received by Tintswalo Patience Chauke as part of her divorce settlement. Chauke was formerly married to Alfred Muzwakhe Sigudla, a beneficiary of multiple grants from the National Lotteries Commission (NLC), until their divorce in 2021.

According to the SIU, the order prevents Chauke from withdrawing or transferring the funds while the Unit finalises a review application seeking to cancel the grant funding that enabled the land purchase. This measure ensures that funds suspected to have been misappropriated are effectively secured during the investigation.

The case forms part of a broader probe into NLC grant misuse. In 2018, the SA Youth Movement NPC, chaired by Sigudla, received approximately R23 million from the NLC to build old-age homes in KwaZulu-Natal and the Free State. However, SIU investigations found that after receiving the funds, Sigudla diverted a portion into accounts of companies he controlled. These diverted funds were subsequently used to purchase two luxury properties — one in Midstream Estate and another in Copperleaf Golf Estate.

The SIU confirmed that the Midstream Estate property has already been frozen pending a review application to determine the lawfulness of the grant and to recover misused NLC funds. Such actions reflect the Unit’s mandate to prevent individuals involved in illegal benefit from retaining proceeds derived from public funding.

“The primary mission of the SIU is to recover proceeds from beneficiaries of NLC grant funding involved in unlawful activities, thereby restoring the State’s financial losses,” the Unit stated.

The investigation is being conducted under the authority of Proclamation R32 of 2020, signed by President Cyril Ramaphosa, empowering the SIU to examine allegations of corruption and maladministration within the National Lotteries Commission. The preservation order represents a key development in the SIU’s ongoing efforts to strengthen accountability, combat corruption, and protect public resources.

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