R1.4bn looted from lotteries commission
THE head of the Special Investigating Unit (SIU), Andy Mothibi, revealed before Parliament's Portfolio Committee on Trade and Industry this week that more than R1.4 billion was looted by dodgy non-profit organisations and non-profit companies and former executives from the National Lotteries Commission (NLC).
During his presentation, Mothibi said the collapse of systems, including evaluation and monitoring, project management and other shortcomings and syndicates working with people inside the NLC, had contributed to the rot that had been uncovered through three phases of investigations carried by the SIU over the past two years.
The DA’s spokesperson on trade, Mat Cuthbert, slammed the ANC and former executives of the NLC for the extent of corruption at the commission. He added that senior officials responsible for the corruption should be brought to book.
Last week, the Special Tribunal moved swiftly to freeze pension benefits of R2.8 million of former NLC chief operating officer Philemon Letwaba pending the final determination of an application to be brought by the SIU. Letwaba had resigned from the NLC pending the institution of a disciplinary hearing into his role in the distribution of NLC funds to several non-profit organisations.
Cuthbert said: “The grotesque use of funding on luxury cars and homes, which was actually intended for oldage homes, drug rehabilitation centres and youth upliftment centres, just shows how twisted these individuals are.”
According to the SIU, the investigation comprises three phases, with the first phase completed already. The total value of the investigations per phase revealed that phase 1 uncovered R279m, phase 2 uncovered R246m, and phase 3 uncovered R905m, in fraudulent deals at the NLC, which has been referred as evidence implicating 13 individuals to the National Prosecuting Authority for possible prosecution.
Newly elected chairperson of the NLC, Barney Pityana, promised to turn the NLC around and improve its image. He said his team has committed itself to stabilising the NLC.