Johannesburg – The Special Investigating Unit (SIU) has obtained a preservation order from the Special Tribunal to freeze a luxury property in Midstream Estate, Gauteng, as part of ongoing civil proceedings into the alleged misuse of funds allocated by the National Lotteries Commission (NLC).
The court order prohibits Israel Mathibe, Smart Safety PPE, and any other related parties from selling, transferring, donating, or otherwise dealing with the immovable property in any way.
The SIU’s investigation uncovered that funds intended for critical community projects – including agricultural development and old-age homes in rural areas – were allegedly diverted through a network of non-profit companies and private entities to purchase the luxury property.
Investigators found that SA Youth Movement NPC received R23 million from the NLC for old-age homes in rural provinces, but subsequently paid R1.6 million to Smart Safety PPE, which contributed this amount towards the property purchase.
Similarly, Malusi We Sizwe NPC received R13 million for an agricultural project in KwaZulu-Natal but transferred R896,980 to Trizaflo (Pty) Ltd, which then paid R2.1 million toward the Midstream property.
The property was registered under Smart Safety PPE, with Alfred Mzwakhe Sigudhla, the then-director of Smart Safety PPE, signing key transaction documents.
Sigudhla, who is named in the Tribunal order, also serves as Chairperson of the SA Youth Movement NPC.
Despite no evidence of project implementation, Sigudhla signed the original R23 million grant agreement on September 15, 2017, and authorized a diversion of an additional R7.5 million on May 21, 2019.
In October 2018, he signed bank agreements as director of Smart Safety PPE and remained an “interested party” on the company’s bank account even after being replaced as director.
The SIU confirmed that the preservation order forms part of its broader investigation into corruption involving NLC grants meant for community development projects.
“The order of the Special Tribunal is part of implementing SIU investigation outcomes and consequence management to recover financial losses suffered by State institutions because of corruption or negligence,” the SIU stated.
Under its mandate, the SIU may institute a civil action in the High Court or Special Tribunal to address wrongdoing uncovered during investigations.
In accordance with the Special Investigating Units and Special Tribunals Act 74 of 1996, the SIU refers any evidence of criminal conduct to the National Prosecuting Authority for further action.
*This article first appeared in our sister publication techfinancials.co.za
