The Special Investigating Unit (SIU) has secured a major legal victory after the Special Tribunal declared a R14 million grant issued by the National Lotteries Commission (NLC) unlawful, invalid, and set it aside.
The ruling orders all beneficiaries involved to repay the full amount.
The funding, which was meant for the development of a cultural village in Hammanskraal, Gauteng, was found to have been fraudulently obtained.
Investigations revealed that the project already existed, having been established in 2015 by the Maubane Cultural Village and Community Arts Centre using a prior NLC grant.
In a strongly worded judgment, Special Tribunal President Margaret Victor described the scheme orchestrated by Tshimangadzo and Ndoweni Mukutu as “clearly fraudulent.”
She ruled that the individuals and their associated entities acted together to defraud the NLC and are jointly liable to repay the full amount, including legal costs.
Judge Victor also issued a stark warning about the state of corruption in the country, saying it has reached “catastrophic” levels. She emphasised that funds intended to uplift communities were instead diverted through a deliberate and dishonest scheme.
The SIU investigation uncovered extensive manipulation, including the unauthorised use of a legitimate non-profit organisation’s constitution, forged signatures, fictitious leadership structures, and the creation of a bank account used to channel millions of rand.
Original members of the Madumelani Community Project confirmed they neither applied for nor had any knowledge of the grant.
Further findings revealed that millions were rapidly distributed to companies and individuals linked to the Mukutu brothers shortly after the funds were disbursed in 2018.
The probe also connected the case to broader corruption within the NLC, including payments to entities associated with former board member William Huma, who has previously been ordered to repay misused funds.
The investigation forms part of a wider probe authorised by Cyril Ramaphosa under Proclamation 32 of 2020, targeting maladministration and corruption within the NLC.
The SIU says the ruling marks a critical step toward recovering public funds and holding those responsible accountable. Criminal aspects of the case have now been referred to the National Prosecuting Authority for further action.