Tribunal Orders SASCOC to Repay R25 Million Lottery Grant

The Special Tribunal has ordered the South African Sports Confederation and Olympic Committee (SASCOC) and several associated individuals and entities to repay nearly R24.98 million that was unlawfully diverted from a National Lotteries Commission (NLC) grant. The ruling follows an investigation by the Special Investigating Unit (SIU), which uncovered an elaborate scheme in which funding intended to support South Africa's 2016 Rio Olympics roadshow campaign was allegedly redirected to benefit private individuals and companies connected to a former senior NLC official.

The judgment marks another significant development in South Africa's efforts to recover public funds lost through fraud and corruption. It also reinforces the role of the Special Tribunal in holding organisations and individuals accountable for the misuse of state resources while strengthening consequence management across public institutions.

Investigation Reveals Fraudulent Funding Scheme

According to the SIU, SASCOC applied for a R34.83 million grant from the National Lotteries Commission on 7 July 2016, acting as a conduit for the Mshandukani Foundation. The foundation had only recently been established, having been registered as a non-profit organisation in February 2016 before opening a bank account in April of the same year.

Investigators found that the identities of two women, a receptionist and a geology intern employed by Mshandukani Holdings, had been used without their knowledge or consent during the registration of the foundation. Their signatures were allegedly forged, and neither woman had any connection with SASCOC or the organisation seeking lottery funding.

Despite these irregularities, SASCOC assisted the foundation in obtaining funding from the National Lotteries Commission. Once the grant was approved, the sports body transferred R24.83 million to the Mshandukani Foundation in three separate payments while retaining R150,000 as payment for services rendered.

The SIU concluded that the foundation did not qualify for the funding because it was newly established and lacked the annual financial statements required under the funding criteria.

Millions Diverted Through Multiple Companies

The investigation traced the movement of grant money after it reached the Mshandukani Foundation. Large portions of the funds were transferred to several businesses instead of being used for the approved Olympic roadshow campaign.

Among the payments identified were R15.35 million transferred to Ironbridge Travel Agency, R7.23 million paid to Mshandukani Holdings, and R2 million paid to Ndzhuku Trading. A further R240,000 was distributed among several beneficiaries under the description "SASCOC Events", including payments to Benza Consulting, Imbizo Events, Koleka Music Productions and Minenhle Dlamini.

The SIU's investigation also uncovered financial links between Ironbridge Travel Agency and former National Lotteries Commission Chief Operations Officer Philemon Letwaba. Payments identified included R450,000 directly to Letwaba, R600,000 to a former NLC legal official and R3 million to Mosokodi Business Trust, an entity linked to Letwaba.

According to investigators, the money transferred to Ironbridge Travel Agency was not used for activities connected to the approved grant. Instead, it was allegedly spent on purchasing vehicles and livestock, paying panel beaters, funding network installation services, covering décor expenses and financially benefiting Letwaba, members of his family and associates.

Tribunal Holds SASCOC Responsible

In its judgment, the Special Tribunal found that SASCOC played an active role in facilitating the unlawful diversion of public funds and was complicit in the scheme used to siphon money from the National Lotteries Commission.

As a result, the Tribunal ordered SASCOC and the other respondents to repay approximately R24.98 million, with the exception of the two women whose identities had been fraudulently used during the registration of the foundation. The SIU also confirmed that Minenhle Dlamini and Imbizo Events had already entered into settlement agreements before the ruling.

The SIU said the Tribunal's decision forms part of the implementation of its investigation outcomes and broader efforts to recover financial losses suffered by state institutions through corruption, fraud and negligence. The unit added that any evidence of criminal conduct uncovered during the investigation will be referred to the National Prosecuting Authority (NPA) for further action in accordance with the Special Investigating Units and Special Tribunals Act, 1996. The ruling represents another step in South Africa's ongoing campaign to strengthen accountability in public institutions and ensure that funds intended for public benefit are protected from misuse. Officials say recovering misappropriated money and pursuing those responsible remain key priorities in restoring public confidence in the management of state resources.