Special Investigating Unit Freezes Two Pretoria Properties Linked to Misused Lottery Funds

Background

The Special Investigating Unit (SIU) has stepped in after discovering that money meant for a rural farming project in KwaZulu‑Natal was allegedly diverted to buy real estate in Pretoria. The grant, worth R13 million, came from the National Lotteries Commission (NLC) and was supposed to help about 1 900 people, including unemployed youth and older residents, through agricultural development in the Zululand District Municipality.

How the Scheme Unfolded

Key Dates

• September 14, 2018: Former NLC grants manager Marubini Ramatsekisa submits a “proactive funding” proposal.
• Same day: NLC COO Philemon Letwaba approves the proposal.
• October 3, 2018: Malusi We Sizwe NPC applies for almost R15 million.
• November 1, 2018: NLC finally awards R13 million for the project.
• November 26, 2018: Shortly after the grant agreement is signed, Nelisiwe Mahlangu is appointed director while the original directors resign.

Money Trail

Investigators traced the funds from the NPC’s account to several companies and eventually to property purchases:

• Between March and November 2019, R5.6 million moved from Malusi We Sizwe NPC to Trizaflo (Pty) Ltd, a firm owned by Wisane Mabundza.
• Trizaflo later sent more than R2.1 million to lawyers in December 2019 to buy a Midstream Estate property registered under Alfred Sigudhla.
• In April 2019, Mahlangu bought a house in Soshanguve for R345 000.
• In October 2020, another property in The Orchards, Hartbeeshoek, was transferred into Mahlangu’s name.

Properties Seized

Soshanguve House

The SIU obtained a protection order on the Soshanguve property after showing it was bought with NLC money intended for the farming project.

The Orchards Property

A second protection order covers the house in The Orchards, Hartbeeshoek, which also ended up in Mahlangu’s name.

What Happens Next

The seizure orders stop anyone from selling or transferring the houses while the SIU pursues civil action to recover the allegedly stolen public funds. If criminal conduct is uncovered, the case will be referred to the National Prosecuting Authority for possible prosecution.

Conclusion

The SIU’s move highlights how quickly public money can be siphoned off when oversight fails. By freezing the Pretoria properties, the unit aims to protect the taxpayers’ cash and send a clear warning that misuse of lottery grants will not be tolerated. Ongoing investigations will determine the full extent of the fraud and hopefully return the R13 million to the communities it was meant to help.