Pretoria: The South African Sports Confederation and Olympic Committee (SASCOC) and several associated parties have been ordered to repay nearly R25 million that was unlawfully diverted from a National Lotteries Commission (NLC) grant. This decision comes after a thorough investigation by the Special Investigating Unit (SIU) and a subsequent order by the Special Tribunal.
According to South African Government News Agency, the SIU found that funds intended for the 2016 Rio Olympics roadshow campaign were misappropriated to benefit certain individuals and companies connected to a former NLC official. The investigation revealed that on July 7, 2016, SASCOC applied for a R34.83 million grant from the NLC on behalf of the Mshandukani Foundation. This foundation was hastily registered as a non-profit company and opened a bank account just months before the application.
Further investigation uncovered that the identities of two women, employed as a receptionist and a geologist intern at Mshandukani Holdings (Pty) Ltd, were used without their consent to register the foundation. Despite having no genuine connection with SASCOC, the organization assisted Mshandukani in securing the grant.
The SIU stated that upon securing the funding, SASCOC transferred R24.83 million to the Mshandukani Foundation in three installments, despite the foundation's ineligibility due to its recent establishment and lack of financial statements. A sum of R150,000 was retained for 'services rendered'. The funds were then distributed to various entities, including Ironbridge Travel Agency, Mshandukani Holdings, and Ndzhuku Trading.
Additionally, R240,000 was paid to several beneficiaries under 'SASCOC Events'. The SIU discovered that companies paid by Ironbridge Travel Agency had links to NLC Chief Operations Officer Philemon Letwaba, with significant sums paid to Letwaba himself and entities connected to him.
The Tribunal ruled that SASCOC was complicit in the scheme to divert funds and played a role in facilitating the illegal use of public money. The SIU's investigation outcomes aim to recover financial losses suffered by State institutions due to corruption or negligence, with any evidence of criminal conduct to be referred to the National Prosecuting Authority for further action.