SIU obtains judgement setting aside R9 million NLC grants for sports complex in Soweto that was never built
The Special Investigating Unit (SIU) has secured a judgment delivered by the Special Tribunal, declaring unlawful and invalid the National Lotteries Commission’s (NLC) R9 million grant to the Motheo Sports and Entertainment Foundation for the construction of a sports complex in Protea Glen, Soweto, Johannesburg, which was never built.
The Tribunal set aside the grant agreement and ordered Jeremane Petrus Sedibe, whom the SIU identified as the mastermind behind the scheme, together with Motheo, former NLC officials, associated individuals and entities involved in the unlawful conduct, to jointly and severally repay R6 million.
The first two tranches (total R6 million) were released, but the third tranche was withheld because the SIU investigation revealed that the funds had been diverted and the sports complex was never constructed.
The falsified progress report and irregular approvals meant the NLC could not justify releasing the final tranche.
The Tribunal also upheld its previous preservation order preventing former NLC employee Sanele Dlamini, who approved a second tranche of R3 million payment to Motheo, from accessing his pension fund until the SIU recovers the misused funds in full.
Dlamini was ordered to cover the legal costs for the pension preservation order handed down on 10 June 2025.
The judgment follows an SIU investigation that found that Motheo’s original application for more than R61.6 million was unsuccessful after the NLC approved only R70,000, which the non-profit organisation (NPO) declined.
Despite this, on 14 April 2021, five months later, former NLC Grant Funding Projects Manager Marubini Ramatsekisa recommended that Motheo receive R9 million through the NLC’s proactive funding process.
The recommendation was approved by former Acting Chief Operations Officer (COO) Nkhesho Njoni.
On 24 May 2021, Tebogo Joseph Mohlala, the Director of Motheo, and Nonhlanhla Matshazi, co-director of Londilox NPC, signed a grant agreement with the NLC, for which payments were to be made in three tranches.
The investigation found that after the first R3 million payment on 9 June 2021R950,000 was transferred to PSKO (Pty) Ltd, a company owned by Sedibe, R500,000 was transferred to Londilox NPC, co-directed by Matshazi, R400,000 was paid to Synercon (Pty) Ltd and between June and August 2021, there were teller cash withdrawals totalling R750,000; ATM withdrawals totalling R282,850; and purchases, bank charges and other transfers totalling R117,150.
The investigation further established that a progress report prepared by Ziphozinhle Khoza of SRSQS Quantity Surveyors and approved by her boss, Marito Mabunda, falsely portrayed construction progress and expenditure, covering 9 June 2021 to 30 November 2021.
Based on the evidence, the SIU found a prima facie case of fraud, theft and corruption against Sedibe, Motheo, Matshazi, Khoza and others involved in the scheme.
The Judge has since ordered Motheo, Ramatsekisa, Njoni, Mohlala, Sedibe, Moadi, Dlamini, Matshazi, PSKO and 2MC to jointly and severally repay the sum of R6 million.
The Tribunal ordered:
•Londilox NPC and Matshazi to repay R500,000 jointly and severally;
- Synercon to repay R400,000;
- PSKO to repay R950,000;
- 2MC to repay R382,205; and
- Mohlala, Sedibe and Matshazi, as signatories to Motheo’s bank account, to repay R1,644, 795, representing funds withdrawn or spent directly from the account.
