The Special Tribunal has ruled that a R2.96 million grant awarded by the National Lotteries Commission to Fire Charismatic Chapel International was unconstitutional, unlawful and invalid, following an SIU investigation into alleged corruption linked to lottery funding.
The ruling orders multiple individuals and entities that benefited from the grant to repay the money to the SIU or the National Revenue Fund.
Those ordered to repay the funds include former NLC chief operating officer Philemon Letwaba, his associates and several companies that received payments from the grant.
The SIU investigation found that Fire Charismatic Chapel International, a non-profit organisation established to promote the Christian faith, had been hijacked and used to obtain lottery funding under false pretences.
“The Tribunal found that the grant was awarded through fraud and misrepresentation after the SIU investigation revealed that Fire Charismatic never organised the festival it claimed to have hosted,” SIU spokesperson Selby Makgotho said.
According to the investigation, the organisation applied for funding in March 2017 to host a festival promoting local artists and musicians.
However, investigators established that the event was actually organised by Macronym 37 (Pty) Ltd after the company had already secured a municipal contract to host the festival.
“The grant application submitted to the NLC was not signed by the legitimate office bearers recorded with the Department of Social Development,” Makgotho said.
Investigators also found that Maria Lebea was added to the NLC application as a director without her knowledge, after her signature was allegedly forged by another individual linked to the application.
The Tribunal noted further irregularities in the approval process.
“Although the festival took place from 14 to 16 April 2017, the grant funding agreement for R2,960,000 was only signed at the NLC’s Hatfield offices on 18 April 2017 – a day after the festival had already concluded,” Makgotho said.
The first tranche of R2.368 million was paid into the organisation’s bank account on April 20, 2017 when the account held a balance of just R5.27.
“The SIU found that shortly after receiving the funds, the money was rapidly distributed to various entities and individuals,” Makgotho said.
Payments included R1 million to Macronym 37, R648,000 to Ndavha Management, R500,000 to Mishsone Trading, R200,000 to Magodi Consulting and R19,000 to the Simba Community Development Foundation.
“By May 12, 2017, only R616.02 remained in the NPO’s account,” Makgotho said.
A further R592,000 was paid to the organisation in October 2018, despite concerns surrounding the project.
The SIU later found that R500,000 from the second payment was transferred to Letwaba’s trust account, while R40,000 was paid to his second wife, Rebotile Malomane.
The Tribunal was also critical of the NLC’s failure to verify the legitimacy of the organisation before approving the grant.
“The Tribunal highlighted that the NLC did not properly verify Fire Charismatic’s legitimacy, discovering during a surprise site visit that its listed office address was that of a newspaper,” Makgotho said.
“The Tribunal also found that the R1 million paid to Macronym 37 was not a ‘genuine’ sponsorship, but a fraudulent transaction designed to ‘divert’ grant funding.”
The SIU said the ruling forms part of broader efforts to recover public money lost through corruption and maladministration at the National Lotteries Commission.
“The Tribunal’s order forms part of the SIU’s ongoing efforts to recover public funds lost through corruption, implement the outcomes of its investigations, and strengthen consequence management across the public sector,” Makgotho said.
The unit added that evidence of criminal conduct uncovered during the investigation would be referred to the National Prosecuting Authority for possible prosecution.
