A decide has granted a preservation order on the multi-million rand luxurious dwelling and furnishings of former National Lotteries Commission (NLC) board chair Alfred Nevhutanda.
Besides the home, the order was additionally granted in opposition to Vhutanda Investments, a personal firm that owns the property. According to official firm data, Nevhutanda is the only director.
At the time the house was bought, set by itself personal two-hectare property in Pretoria, Nevhutanda was the long-time chairperson of the NLC board.
The order, which was sought by the Special Investigating Unit (SIU), was granted after a secret digital listening to presided over by Special Tribunal Judge Soma Naidoo on 15 June.
The decide additionally instructed the SIU to provoke civil proceedings in opposition to Nevhutanda and Vhutanda “for the disgorgement of secret profits improperly earned” throughout Nevhutanda’s tenure because the NLC board chair.
Judge Naidoo additionally ordered a “review and setting aside” of the choices by the NLC to grant funding to 5 non-profits, which between them obtained tens of hundreds of thousands of rands for infrastructure initiatives. These embody two Lottery-funded previous age houses and a drug rehabilitation centre which have by no means been accomplished.
In phrases of the order, each Nevhutanda and Vhutanda Investments are “prohibited from selling, disposing of, leasing, transferring, donating, or dealing any manner whatsoever with respect to the immovable property and the furniture.”
The SIU stated in a press release: “The property is now under the care of a curator.”
“The SIU will institute civil proceedings within 60 days, which seeks to review and set aside the decisions by the NLC to approve funding for War_Rna NPO, Inqaba Yokulinda, Mushumo Ushava Zwanda, Simingaye Community Project NPO and Zibsilor NPO, and recover financial losses suffered by the state.”
Also included within the order are two personal firms. One of them, Mishone Trading 11, was recognized by the SIU as a “vehicle to distribute NLC funds” to companies “directed by” members of NLC chief working officer Phillemon Letwaba’s household.
Several people concerned with the affected non-profits are additionally named within the preservation order.
“[The] SIU probe has revealed that the property was funded by non-profit organisations (NPOs) with the money they have received, under the auspices of grant funding, from the National Lotteries Commission,” the SIU posted on its official Twitter account.
“Five NPOs applied for grant funding at the NLC and were jointly funded to the tune of over R100-million. Immediately after funding was received, the NPOs transferred money to a legal firm for the purchase of the property and the furniture,” reads one other tweet.
Construction has been deserted on the Zibsilor rehab centre in Soshenguve. It had obtained R29.5-million from the NLC. Photos: Raymond Joseph
GroundUp revealed earlier this year how non-profit organisations that had obtained Lottery grants contributed hundreds of thousands of rands, each straight and not directly, to assist pay for Nevhutanda’s lavish R27-million mansion. It was being marketed by a London-based property agent for £2.42 million on the time Nevhutanda purchased it in 2018.
The GroundUp investigation uncovered proof that the cash was paid over a six-month interval, between September 2017 and March 2018, on to Couzyn Hertzog & Horak Attorneys, a legislation agency appearing for the vendor of the property. This cash was held in belief by the attorneys till the property was transferred to Vhutanda.
The whole price of the home, together with over R3-million in switch charges, was greater than R30-million. Yet it has a municipal valuation of solely R5.3-million.
The nonprofits affected by the preservation order are:
- Yokulinda Inqaba: earlier this 12 months the SIU obtained a preservation order in opposition to this organisation that obtained over R19-million to construct an athletics observe within the Northern Cape, an IT firm and 5 folks, together with Terrence Magogodela, the appearing CEO of Athletics South Africa. The organisation transferred R10-million of its NLC grant to Unicus Solu(IT)ons (Pty) Ltd, which in flip paid R2.5-million in the direction of the home. Several of the events concerned have appealed, however judgement is but to be handed down by the Tribunal.
- WAR_RNA is a dormant NPO that was hijacked and used to efficiently apply for R28.3-million in funding between 2017 and 2020 to construct an previous aged dwelling within the North West. Like 5 different Lottery-funded previous age houses and 4 drug rehabs, building continues to be not completed and none are but operational. Also named as respondents within the preservation order are a number of individuals who have been concerned within the hijacking of the WAR_RNA and utilizing it to efficiently apply for Lottery grants. Among them is Matodzi Mashele, whose firm Mishone Trading 11, was paid R11.7-million by WAR_RNA. Of this cost, R9.2-million was paid into the belief account of the attorneys dealing with the acquisition of Nevhutanda’s dwelling.
- During a presentation to Parliament in March this 12 months, SIU head advocate Andy Mothib stated investigations had recognized Mishone as a “vehicle to distribute NLC funds” to companies “directed by” members of NLC Chief Operating Officer Phillemon Letwaba’s household.
- Mushumo Ushavo Zwanda is a hijacked non-profit organisation that obtained R27.4-million to build an old age dwelling in rural Limpopo. Mushumo paid R2.1-million in the direction of Nevhutanda’s dwelling. The web site has been deserted and left to rot.
- Simingaye Community Project paid R600,000 in the direction of the home after it obtained a R13-million grant within the 2018/19 monetary 12 months. We have been unable to determine what challenge this funding was for.
- Zibsilor is a shelf firm that obtained R29.5-million in Lottery funding for a drug rehab centre in Soshenguve, close to Pretoria. It chipped in R1-million in the direction of Nevhutanda’s home. Despite the hundreds of thousands it obtained in grants, the rehab continues to be unfinished.
Not included within the preservation order are a number of personal firms that contributed to the home, together with an IT firm and one other firm linked to NLC COO Letwaba.
Construction on the Lottery-funded previous age dwelling in North West was deserted. The Lottery had paid out R28.3-million of this challenge.
Rather than being direct beneficiaries, some of these firms have been contracted as service suppliers by the NLC, or by non-profits that obtained Lottery funding. GroundUp understands that these oblique dealings are usually not lined within the authentic proclamation signed by President Cyril Ramaphosa in October 2020, which authorised the SIU to probe alleged corruption and maladministration involving the National Lotteries Commission (NLC). The authentic proclamation would should be prolonged to incorporate them.
Nevhutanda was appointed to the NLC board in 2009 throughout the presidency of Jacob Zuma. As former provincial chairperson of the ANC in Limpopo, Nevhutanda was one of the important thing fundraisers for the social gathering’s 2009 election marketing campaign in that province.
During his 11-year tenure as chairman of the NLC board, the politically-connected Nevhutanda dominated the NLC with an iron grip, tightly controlling the organisation’s messaging and speak to with the federal government and the ANC.
© 2022 GroundUp. This article was first printed here.
