SIU wins court order to recover R6m in failed R9m NLC Soweto sports project
· Citizen
The Special Investigating Unit (SIU) has secured a court victory after the Special Tribunal declared a R9 million National Lotteries Commission (NLC) grant awarded for a sports complex in Protea Glen, Soweto, as unlawful and invalid.
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The Tribunal set aside the grant agreement awarded to the Motheo Sports and Entertainment Foundation. It also ordered those implicated in the scheme to repay millions of rand misappropriated from the project.
Tribunal orders repayment of R6 million
According to the SIU, the Tribunal ordered Mr Jeremane Petrus Sedibe, identified as the mastermind behind the scheme, together with Motheo Sports and Entertainment Foundation, former NLC officials, associated individuals and companies. They must jointly and severally repay R6 million.
The SIU said only the first two grant payments, totalling R6 million, were released. However, the final R3 million tranche was withheld after investigators discovered the funds had been diverted and the promised sports complex had never been constructed.
“The falsified progress report and irregular approvals meant the NLC could not justify releasing the final tranche,” the SIU said.
The Tribunal also upheld an earlier preservation order preventing former NLC employee Mr Sanele Dlamini from accessing his pension fund. This will remain in place until the SIU recovers the misused funds in full.
Dlamini, who approved the second R3 million payment to Motheo, was also ordered to pay the legal costs relating to the pension preservation order granted on 10 June 2025.
SIU uncovers irregular funding process
The judgment follows an SIU investigation that found Motheo’s original application for more than R61.6 million had failed. The NLC approved only R70 000, which the non-profit organisation declined.
However, five months later, on 14 April 2021, former NLC Grant Funding Projects Manager Mr Marubini Ramatsekisa recommended that Motheo receive R9 million through the commission’s proactive funding process. The recommendation was subsequently approved by former acting chief operations officer Mr Nkhesho Njoni.
On 24 May 2021, Motheo director Mr Tebogo Joseph Mohlala and Londilox NPC co-director Ms Nonhlanhla Matshazi signed the grant agreement with the NLC.
Investigators found that shortly after the first R3 million payment was made on 9 June 2021, large portions of the funds were transferred to companies and individuals linked to those involved in the scheme.
The SIU said:
- R950 000 was transferred to PSKO (Pty) Ltd, a company owned by Sedibe.
- R500 000 was transferred to Londilox NPC.
- R400 000 was paid to Synercon (Pty) Ltd.
- Between June and August 2021, teller cash withdrawals amounted to R750 000. Furthermore, ATM withdrawals totalled R282 850 and a further R117 150 was spent on purchases, bank charges and other transfers.
False progress reports
The SIU further found that a progress report prepared by Ms Ziphozinhle Khoza of SRSQS Quantity Surveyors and approved by her superior, Mr Marito Mabunda, falsely reflected construction progress and expenditure between 9 June and 30 November 2021.
“Based on the evidence, the SIU found a prima facie case of fraud, theft and corruption against Sedibe, Motheo, Matshazi, Khoza and others involved in the scheme,” it said.
The Tribunal ordered Motheo, Ramatsekisa, Njoni, Mohlala, Sedibe, Moadi, Dlamini, Matshazi, PSKO and 2MC to jointly and severally repay the R6 million.
Additional repayment orders include:
- Londilox NPC and Matshazi must jointly repay R500 000.
- Synercon must repay R400 000.
- PSKO must repay R950 000.
- 2MC must repay R382 205.
- Mohlala, Sedibe and Matshazi, as signatories to Motheo’s bank account, must repay R1 644 795. This represents money withdrawn or spent directly from the account.
SIU to pursue further action
The SIU said the investigation formed part of the wider probe into allegations of corruption and maladministration at the NLC. This investigation was authorised by President Cyril Ramaphosa through Proclamation R32 of 2020.
“The Tribunal’s orders form part of the SIU’s ongoing efforts to implement investigation outcomes, recover public funds lost through corruption and strengthen consequence management across the public sector,” the unit said.
It added that, in line with the Special Investigating Units and Special Tribunals Act, any evidence of criminal conduct uncovered during the investigation would be referred to the National Prosecuting Authority for further action.