- The SIU conducted a raid on the offices of the NLC in Pretoria on Tuesday.
- The unit is investigating the national lottery for corruption, fraud and tender irregularities.
- The scope of the investigation spans the last six years.
The Special Investigating Unit (SIU) will collect troves of documents and electronically stored information as it investigates the National Lotteries Commission (NLC) for corruption, fraud and tender irregularities over the last six years.
Around a dozen SIU officers carried out a search and seizure warrant at the NLC's head offices in Pretoria on Tuesday morning.
Officers were seen leaving with boxes of documents and it's understood that computers and other electronic storage devices will be seized.
From there, the SIU will also be collecting documents from metro file, while a raid at a law firm is expected to be executed as part of the investigation.
The SIU executing a search and seizure warrant at the National Lottery Commission’s head offices in Pretoria as an it investigated allegations of corruption, fraud and tender irregularities. @TeamNews24 pic.twitter.com/AM4Aw5bROJ
— Alex Mitchley (@AlexMitchley) December 8, 2020
SIU spokesperson Kaizer Kganyago said the team knows exactly what documents are needed and where it has been kept.
He added that the documents sought are being found.
Once the search and seizures are completed, the information collected will be analysed to see if allegations of wrongdoing by the national lottery can be substantiated.
These raids form part of an investigation by the SIU following the proclamation signed by President Cyril Ramaphosa, which ordered an investigation into the NLC and allegations of corruption, fraud, and tender irregularities dating back to 2014.
Kganyago said the SIU is investigating the following allegations:
- Serious maladministration in connection with the affairs of the NLC;
- Unlawful appropriation or expenditure of public money or property;
- Improper or unlawful conduct by employees or officials of the NLC;
- Unlawful, irregular or unapproved acquisitive acts, transactions, measures or practices having a bearing upon state property; and
- Intentional or negligent loss of public money or damage to public property.
The commission has recently been engulfed by ongoing reports of corruption, nepotism and maladministration, GroundUp reported.
There have been a number of allegations that NLC top executives are giving grants to friends, family and close associates.
In September, News24 reported that four NLC proactive funding projects had allegedly been linked to COO, Philemon Letwaba, his friends and relatives.
One non-profit organisation (NPO) received R11 million, of which R2 million was allegedly paid to a private company owned by a person related to an employee of the NLC.
Another NPO, which was allegedly set up in May 2017, was awarded funding around six months later to the tune of R4.8 million.
News24 also reported that Parliament had ordered NLC chairperson, Professor Alfred Nevhutanda, to resign in September.
His position was reportedly advertised, with an appointment date set for 1 December.
Kganyago said if the allegations can be substantiated, they will start the process to recover the money - and, if there is criminality, it will be pursued to the end.
He could not give an estimate of the amount allegedly siphoned through wrongdoing, but said it would be a large sum of money as the transactions being investigated date back to 2014.
Kganyago added that, if wrongdoing is discovered, those involved will not be spared, even if they are in top management or sitting on the NLC board.
NLC spokesperson Ndivhuho Mafela said the investigation by the SIU was welcomed as they are a government entity and that such investigations are part of the government's checks and balances.
"So, we are here assisting the SIU and we are cooperating fully with whatever requirements the SIU need for this investigation that they are conducting," Mafela said.
Mafela added the allegations against the NLC were not new, and that the board and commission had also conducted its own investigation.
"It is not something that the commission has taken lightly.
"The NLC is cognisant that we are sitting on top of public funds and the misuse of those becomes a very serious matter to us, hence the board and the NLC went all out to investigate.
"We welcome these further moves by the SIU to investigate, with the hope that all these issues will be laid to rest."
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