SIU Blocks R500 000 Pension Payout to Former NLC Official Linked to R31M Fraud Scheme

According to the SIU, Vilakazi enabled Zuma to receive 48 payments amounting to approximately R31.2 million from entities that were beneficiaries of NLC grants.

 

The Special Investigating Unit (SIU) has secured a preservation order from the Special Tribunal to interdict a R500 000 pension payout to former National Lotteries Commission (NLC) official Sibonelo Vilakazi, amid ongoing investigations into large-scale corruption and maladministration at the entity.

Vilakazi previously served as a Client Liaison Officer at the NLC’s KwaZulu-Natal branch and is accused of exploiting his position to facilitate unlawful financial benefits for his spouse, Nosipho Zanele Zuma.

SIU Investigation Uncovers Extensive Financial Abuse

According to the SIU, Vilakazi enabled Zuma to receive 48 payments amounting to approximately R31.2 million from entities that were beneficiaries of NLC grants. The funds were channelled through Zuma’s company, ZZET Enterprises, and were allegedly used to purchase luxury vehicles and properties.

Among the assets acquired using the proceeds of the alleged scheme were two Toyota Quantums, a Toyota Hilux, and two immovable properties.

A report compiled by the Financial Intelligence Centre (FIC) revealed that ZZET Enterprises received multiple electronic fund transfer payments from various care centres and football clubs, totalling approximately R32 259 707. These organisations had previously received grant funding from the NLC.

Hundreds of Organisations Implicated

SIU investigations further revealed that more than 400 care centres and football clubs made payments to bank accounts linked to Vilakazi and Zuma between 2019 and 2023. These payments were allegedly sourced from funds originally disbursed by the NLC, raising serious concerns about systemic abuse of public money and the exploitation of vulnerable organisations.

The latest preservation order follows an earlier SIU success in freezing approximately R2.4 million held in four bank accounts linked to Vilakazi and Zuma, as part of efforts to prevent the dissipation of suspected proceeds of unlawful activities.

Disciplinary Action and Dismissal

Following the SIU’s findings, the NLC instituted a formal disciplinary process against Vilakazi. The proceedings, which ran from 29 November 2023 to 1 August 2024, found him guilty on all charges.

Vilakazi was subsequently dismissed on 4 October 2024.

“This marked a decisive step in addressing his gross misconduct, abuse of office and breaches of fiduciary duty,” the SIU said in a statement.

SIU to Pursue Pension Freezes and Asset Recovery

The SIU emphasised that it will continue to pursue officials who resign or are dismissed while under investigation by seeking the freezing of pension benefits and instituting civil litigation to recover financial losses suffered by state institutions.

“The SIU will continue to pursue officials who attempt to evade accountability by resigning or exiting employment during investigations,” the unit said.

The investigation into the NLC forms part of a broader probe authorised by President Cyril Ramaphosa under Proclamation R32 of 2020, which mandates the SIU to investigate allegations of corruption and maladministration within the NLC and recover losses suffered by the State.

Criminal Referrals to Follow

In terms of the Special Investigating Units and Special Tribunals Act 74 of 1996, the SIU is empowered to institute civil proceedings in either the Special Tribunal or the High Court to correct wrongdoing uncovered during its investigations.

Evidence pointing to criminal conduct is referred to the National Prosecuting Authority (NPA) for possible prosecution.

The SIU said investigations into the affairs of the NLC remain ongoing, with further asset recoveries and legal action expected as cases progress.