The Special Investigating Unit (SIU) welcomes the judgment delivered by the Special Tribunal, which affirms the Tribunal’s authority to preserve pension funds under the Pension Funds Act.
The ruling follows after the former Chief Operating Officer of the National Lotteries Commission (NLC), Philemon Letwaba, attempted to reverse the previous preservation order by submitting that the Special Tribunal has no jurisdiction to rule over the freezing of pension funds.
Judge Margaret Victor, the President of the Special Tribunal, in judgment explained:
“To interpret the word ‘court’ narrowly would create an absurdity and undermine the fight against corruption. The Special Tribunal must be read harmoniously with the Pension Funds Act, so that it can exercise its powers to preserve and deduct pension benefits where misconduct, dishonesty, or fraud is proven. This interpretation promotes the spirit and objects of the Bill of Rights and ensures that justice is not defeated by technicalities.”
The order ensures that the R2.8 million pension benefits due to Letwaba remain frozen, preventing him from benefiting from misconduct while investigations and civil proceedings continue.
Letwaba is implicated in the looting of MLC Funds which has since been labeled as the “Great Lotto Heist”.
“This judgment reinforces the principle that individuals implicated in corruption cannot shield themselves through pension benefits,” Victor.
SIU Spokesperson Kaizer Kganyago said the SIU investigation revealed that Letwaba abused his position to siphon millions of rands intended for community upliftment projects.
He further said instead of reaching vulnerable communities, these funds were diverted into companies and trusts owned or controlled by his wife, brother-in-law, and close associates, including Upbrand Properties, Mosokodi Water Solutions and Drilling, Mosokodi Farming Project, Mosokodi Trust, and the Letwaba Family Trust.
“The SIU’s probe shows that the money was used to enrich his family and associates through property acquisitions, luxury lifestyles, and business ventures. In one case, a Limpopo-based NPO received approximately R25 million for the refurbishment of a torched school in Vuwani.
“Twelve days later, R4 million was transferred to Up brand Properties without evidence of work being done, in violation of the funding agreement. In line with the Special Investigating Units and Special Tribunals Act 74 of 1996 (SIU Act), the SIU will refer any evidence of criminal conduct uncovered during its investigation to the National Prosecuting Authority (NPA) for further action,” he said.
Kganyago further said the SIU is also authorised to initiate civil proceedings in the High Court or a Special Tribunal in its name to correct any wrongdoing uncovered during its investigation and to recover financial losses suffered by the State, including funds paid for services not rendered.
“This is a one-stop information hub for our NLC investigation. On 6 November 2020, Proclamation No. R.32 of 2020 was published. Under this proclamation, President Cyril Ramaphosa authorised the Special Investigating Unit (SIU) to investigate allegations of maladministration in the affairs of the NLC and to recover any loss that the NLC or state has suffered.
“The investigation covers the period from 1 January 2014 to 6 November 2020, where the SIU will probe the investment of funds from the National Lottery Distribution Trust Fund, established under section 21 of the Lotteries Act, No. 57 of 1997, in violation of the applicable provisions of the Lotteries Act. The SIU will also investigate the allocation of money from the Fund to beneficiaries who were not entitled to receive it under the relevant provisions of the Lotteries Act of 1997,” he said.
Kganyago also said the SIU will probe any improper or unlawful conduct by the officials or employees of the NLC, or any other person or entity, including the causes of such improper or unlawful conduct and any losses, damage or actual or potential prejudice suffered by the NLC or the State.