A non-public firm that has been paid millions for offering providers to the National Lotteries Commission (NLC), contributed R2 million towards the luxurious mansion of Alfred Nevhutanda, the NLC’s former board chairperson.
Neo Solutions was paid over R26 million in charges by the NLC, in keeping with NLC commissioner Thabang Mampane in reply to a parliamentary query.
Last month, the Special Tribunal issued a preservation order freezing the mansion and its contents. The order was granted in opposition to Nevhutanda and Vhutanda Investments, a personal firm that owns the property. Nevhutanda is the only real director of the corporate, in keeping with official firm data.
Also included within the order have been 5 non-profit entities and two personal firms, in addition to 20 folks concerned with them.
Between them, the non-profits obtained round R100 million in lottery grants, and so they in flip, straight or not directly, contributed millions of rands to assist pay for Nevhutanda’s lavish residence, in keeping with the SIU.
The preservation order confirmed earlier reporting by GroundUp.
But GroundUp can reveal that Zibsimanzi, a non-profit linked to the spouse of NLC chief working officer Phillemon Letwaba, and a number of other different personal firms that additionally contributed towards the home, weren’t included within the Special Tribunal order.
Apparently, it is because the SIU solely turned conscious of Zibsimanzi’s involvement after the order was granted. The cash from Zibsimanzi was channelled to MDU Consulting, a agency of consulting engineers.
MDU then paid millions to conveyancing attorneys performing within the sale of the mansion.
Another agency of consulting engineers, VNMM Consulting Engineers, of which Nevhutanda’s son-in-law is a director, additionally paid millions towards the home.
GroundUp understands that the SIU must apply for Zibsimanzi and others to be added to the prevailing Tribunal order.
Responding to detailed emailed questions, NLC spokesperson Ndivhuho Mafela stated, “The transactions cited in your enquiry are at the heart of the SIU investigation which is ongoing … The NLC will only make a determination after engaging with the final report of the SIU investigation.”
Nevhutanda failed to reply to emailed questions.
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Following the cash
Companies that chipped in millions to pay for Nevhutanda’s home, however weren’t included within the Special Tribunal preservation order embrace: Neo Solutions, MDU Consulting Engineers, VNMM Consulting Engineers and Zibsimanzi.
Neo Solutions attracted consideration when it featured on the Zondo Commission, when Vivien Natasen, one in all two administrators within the firm, appeared in reference to allegedly corrupt transactions involving SA Express. Zondo really helpful the NPA take into account legal expenses in opposition to Natasen.
Neo Solutions has earned millions from authorities tenders, together with enjoying a task within the R8.8 billion taxi recapitalisation challenge.
GroundUp has established that Neo Solutions paid R2 million towards the home. It just isn’t clear why Neo, a service supplier to the NLC, would contribute towards the R27 million mansion of the Commission’s then board chairman.
MDU Consulting Engineers and Zibsimanzi
MDU Consulting Engineers and Zibsimanzi, an NPC, made funds totalling R3.5 million towards the acquisition of the home.
The NLC accredited a grant of R4.8 million to Zibsimanzi on 21 November 2017 for a soccer match for aged ladies in Phalaborwa, Limpopo.
GroundUp has been unable to search out any proof that the match was ever staged; and if it was, how virtually R5 million was spent on staging it.
The grant got here simply six months after Zibsimanzi was purchased as an NPC off the shelf after which used to use for lottery funding.
This was inside six months of Rebotile Malamane, the second spouse of Phillemon Letwaba (he has two wives), and one in all Letwaba’s associates, Themba Mabundza, and a 3rd individual have been appointed as administrators of Zibsimanzi.
Zibsimanzi transferred R4.25 million to MDU, which in flip paid R3.5 million to attorneys dealing with the sale of the home to Nevhutanda.
Neither Phillemon Nzima, the only real director of MDU, nor Malamane responded to detailed questions despatched to them by way of WhatsApp.
Mabundza stated in reply to questions by way of WhatsApp: “I have no knowledge about these payments or companies you are referring to and I would urge you to get your facts correct.”
With regard to the Zibsimanzi grant, he stated: “The project was fully implemented and the report was sent to the National Lotteries Commission, and to our knowledge, the project is closed. We have also fully cooperated with the investigation by SIU and law enforcement officers on this project.”
VNMM Consulting Engineers
VNMM Consulting Engineers made funds totalling R4.3 million towards the acquisition of the home.
Nevhutanda’s son-in-law, Meshack Makhubela, is the only real director of VNMM. He is married to Nevhutanda’s daughter, Murendwa Sharon.
In 2011, Sharon and her father have been caught up in scandal after News24 revealed that an NPO, Makhaya Arts and Culture, had employed the then 22-year-old movie faculty graduate as a advertising govt in 2010.
Her appointment got here solely weeks after the (then) National Lotteries Board Arts and Culture Distribution company, on which her father had beforehand served, accredited a R41 million grant to Makhaya to stage abroad “arts extravaganzas”.
After being contacted by way of SMS, Makhubela provided his and his lawyer’s e mail addresses and requested for inquiries to be emailed to each. Neither responded to the questions.
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Neo cashes in
Neo Solutions earned over R26 million from the National Lotteries Commission (NLC) between 2014 and 2021, in keeping with a solution by NLC Commissioner Mapane to a parliamentary query posed by DA shadow minister for Trade, Industry and Competition Mat Cuthbert.
R22.6 million of this, paid throughout the 2014 to 2016 monetary years, was for the “project management cost of the Third National Lottery Licence RFP (request for proposal) and decommissioning thereof.”
The third licence was issued to Ithuba underneath controversial circumstances, resulting in litigation.
Neo was additionally paid R2.98 million within the 2016/17 monetary 12 months to doc the National Lottery licence course of.
Neo was additionally paid R498,000 within the 2020/21 monetary 12 months for a “cyber security assessment”. The NLC had beforehand claimed that its laptop system was hacked and data stolen and utilized by GroundUp for its long-running investigation into the lottery.
The NLC additionally reported this reporter to the State Security Agency (SSA), claiming he had been concerned in hacking their laptop system.
Responding to detailed emailed questions, Natasen stated that Neo Solutions was cooperating with the SIU investigation involving Nevhutanda’s home, and “been advised any interaction/comments whilst such an investigation is underway may be prejudicial to the investigation and the related legal processes which are underway.”
“In the circumstances, we are restricted in providing any response to your questions on those specific issues, however, we are happy to provide you with detailed responses when appropriate to do so.”
He stated Neo was “appointed through the NLC’s supply chain processes, as and when services are required”. Neo was not a “regular recipient” of initiatives from the NLC, he stated.
Neo Solutions at Zondo
Neo Solutions featured on the Zondo fee when Vivien Natasen, one in all two administrators within the firm, appeared in reference to allegedly corrupt transactions involving SA Express.
In his closing report on state seize, Judge Raymond Zondo described the SA Express offers as “designed to take cash out of the state’s coffers for the good thing about these with energy and affect who orchestrated the scheme.
“All of the government and state officials, as well as private individuals who were involved in this looting scheme, should be brought to justice.”
Natasen instructed the fee in 2019 that neither he nor Neo had benefited from funds from Koreneka Trading and Projects, an organization allegedly hijacked by former SA Express basic industrial supervisor Brian van Wyk.
Natasen stated that no matter they obtained from Van Wyk was returned to him.
Koreneka Trading and Projects sole director Babadi Tlatsana had earlier testified that her firm paid R9.9 million to Neo Solutions.
Neo Solutions then paid R9.3 million to Batsamai Investments, which is owned by Sipho Levy Phiri, Van Wyk’s life companion.
In his closing report, Zondo wrote: “Serious consideration [should] be given by the NPA to charging Vivien Natasen with money laundering and the use of the proceeds of crime after such further investigation as the law enforcement agencies may conduct.”
This article first appeared on GroundUp and was republished with permission. Read the unique article here.
