SIU SECURES SPECIAL TRIBUNAL JUDGMENT SETTING ASIDE UNLAWFUL R9 MILLION NLC GRANT FOR GHOST SOWETO SPORTS COMPLEX
BY: CHANON LECODEY MERRICKS | ONLINE EDITOR
SIU SECURES SPECIAL TRIBUNAL JUDGMENT SETTING ASIDE UNLAWFUL R9 MILLION NLC GRANT FOR GHOST SOWETO SPORTS COMPLEX
JOHANNESBURG, GAUTENG – The Special Investigating Unit (SIU) has obtained a judgment from the Special Tribunal declaring the National Lotteries Commission’s (NLC) R9 million grant to the Motheo Sports and Entertainment Foundation unlawful and invalid.
The grant, intended for the construction of a sports complex in Protea Glen, Soweto, was set aside after investigations revealed the complex was never built and funds were systematically siphoned off.
Fraudulent Grant Approval and Financial Siphoning
The investigation revealed that Motheo's initial grant request for R61.6 million was rejected by the NLC in 2020. However, five months later, former NLC Grant Funding Projects Manager Marubini Ramatsekisa recommended Motheo for R9 million in proactive funding—an approval granted by former Acting COO Nkhesho Njoni.
After the NLC paid the first R3 million tranche in June 2021, the funds were immediately diverted:
PSKO (Pty) Ltd (Jeremane Sedibe): R950,000
Londilox NPC (Nonhlanhla Matshazi): R500,000
Synercon (Pty) Ltd: R400,000
Cash / ATM Withdrawals & Purchases: R1,150,000
Despite no physical construction occurring on site, quantity surveyors SRSQS submitted a falsified progress report, prompting former NLC employee Sanele Dlamini to approve a second R3 million tranche. The final R3 million tranche was halted when the SIU intervened.
Special Tribunal Orders and Repayment Liabilities
The Special Tribunal ordered the identified mastermind, Jeremane Petrus Sedibe, along with Motheo, former NLC officials, and implicated entities, to jointly and severally repay R6 million.
Specific repayment mandates handed down by the Tribunal include:
PSKO (Pty) Ltd: R950,000
Londilox NPC & Nonhlanhla Matshazi: R500,000 (jointly and severally)
Synercon (Pty) Ltd: R400,000
2MC: R382,205
Mohlala, Sedibe, & Matshazi (Account Signatories): R1,644,795 for funds withdrawn or spent directly from Motheo's bank account
Pension Preservation and Criminal Referrals
Pension Frozen: The Tribunal upheld a preservation order freezing the pension benefits of former NLC official Sanele Dlamini until the full R6 million is recovered. Dlamini was also ordered to cover legal costs for the June 2025 preservation order.
NPA Referral: In terms of the SIU and Special Tribunals Act 74 of 1996, evidence of fraud, theft, and corruption against the individuals and entities involved is being referred to the National Prosecuting Authority (NPA) for criminal prosecution.
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