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Parliament to receive crucial update on R2 billion National Lotteries Commission corruption probe

'LOOTED' FUNDS

Manyane Manyane|Published

The South African Police Service and the Hawks are set to present their findings to Parliament on the extensive corruption allegations surrounding the National Lotteries Commission, which are reported to involve more than R2 billion.

Image: Supplied

Next month, the SAPS and the Hawks are scheduled to provide Parliament with an update on their investigations into widespread corruption at the National Lotteries Commission (NLC) involving over R2 billion

Toby Chance, a member of Parliament's Committee on Trade, Industry and Competition, has confirmed that both the SAPS and the Hawks will meet the committee on June 30, 2026, to give an update on the probe.

This comes after the SAPS and the Hawks failed to appear at a scheduled briefing before the committee on March 24, 2026, causing frustration among MPs regarding the slow pace of investigations.

The meeting, which was meant to receive updates on probes into more than R2bn in looted lottery funds, went ahead with presentations from the Special Investigating Unit (SIU) and the National Prosecuting Authority (NPA), but the police leadership failed to appear, offer an apology, or explain their absence.

This briefing was originally set for January 29, 2026, and was postponed to March 24, 2026, making the failure to attend more severe in the eyes of committee members. 

“The committee is meeting with SAPS and the Hawks on June 3, where we will get an update. Remember, the SIU is investigating over R1bn in corrupt grants, so we are keeping an eye on all of them,” he said.

Committee chairperson, Mzwandile Masina, could not be reached for comment at the time of publication.

The SIU investigation has so far implicated former board members, senior executives, their family members, and various high-profile individuals. The corruption involved a “coordinated scheme” where grants intended for community projects like old-age homes and sports facilities were diverted to purchase luxury properties and vehicles.

Former NLC board chairperson Professor Alfred Nevhutanda has been linked to the alleged purchases of a R27 million mansion and a R6,3m Rolls-Royce using lottery funds, while Phillemon Letwaba, former chief operating officer, is allegedly linked to funds diverted to entities, including Ironbridge Travel Agency (R15,35m) and the Mosokodi Business Trust (R3 million).

Former NLC Commissioner Thabang Mampane resigned after being questioned about a luxury golf estate home allegedly paid for with school funding.

Advocate William Huma, a former board member, was found to have allegedly abused his position to funnel funds to family-linked entities, including a chicken farming project that never benefited the community.

Actors Moitheri (Terry) Pheto and the late Presley Chweneyagae have been allegedly linked to misappropriated funds, while celebrity Minnie Dlamini also agreed to repay funds illegally paid to her by an NPO involved in the scheme.  

While the SIU has been investigating around 700 matters involving more than R2bn in grants, only one person, Christopher Tshivule,  had been convicted in 2023, for “hijacking” a non-profit to defraud the NLC of R1.5m. 

Asked why no senior executives or board members were arrested since the SIU began its probe, police spokesperson Athlenda Mathe said questions should be directed to the Hawks. 

Hawks spokesperson, Brigadier Thandi Mbambo, said they would appear before Parliament to discuss the investigation progress. 

The SIU also secured the repayment of R3,2m from beneficiaries who received undue grants.

The SIU said the R1,5m that was granted to Todi Media in 2018 was intended for a media project that included covering journalists’ accommodation, car hire, catering, equipment rental, guest speakers, marketing, and security but was diverted into private pockets and toward property purchases.

An amount of R550,000 was diverted to Unscripted Communication, whose director is Makhudu Sefara, Editor at the Sunday Times.

Chance said these allegations are also likely to be discussed. 

“The issue here is not the amount of money, which is relatively small compared to some of the other corrupt grants. The issue is possible sweetheart journalism when Sefara was editor of Sunday World and questions about his probity related to the Unscripted Communication payment. This is why there needs to be an investigation, and the NPA should also decide whether to prosecute,” he said. 

NPA spokesperson Kaizer Kganyago did not respond on the latest developments in the case. 

GroundUp, in 2023, wrote a series of articles regarding the Sunday World allegedly benefitting from millions of rands of Lottery advertising and running stories to counter exposés of corruption - while Sefara was then its Editor. 

Meanwhile, Arena Holdings said it has started a process to commission an independent investigator to conduct a review of all facts relating to the SIU statement against Sefara.

The South African National Editors’ Forum (Sanef) also launched an independent legal inquiry into the matter - Sefara last week stepped down as Sanef chairperson.

manyane.manyane@inl.co.za