SIU freezes funds directed to entities pretending to uplift old age homes

IT HAS BEEN uncovered that applications for funding that were made to the National Lotteries Commission, totalling R66 million for the purpose of uplifting old age homes, were done under "false pretenses".

Instead, it was nothing but a fraudulent money-making scheme perpetrated by a criminal syndicate.

The Special Investigating Unit (SIU) made the discovery after a comprehensive investigation into the alleged looting of funds designated for the construction of old age homes, which revealed a complex network of deceit involving multiple Non-Profit Organisations (NPOs).

This has prompted the SIU to take legal action against corruption linked to the National Lotteries Commission (NLC) by securing a preservation order from the Special Tribunal to freeze immovable property of those implicated.

Spokesperson for the SIU, Kaizer Kganyago, confirmed that the investigation focused on three NPOs: Matieni Community Centre, Lethabong Old Age Home, and War Against Rape and Abuse (WAR RNA).

It is believed that the three organisations in question collectively received over R66 million in lottery grants through what the SIU describes as “false pretences.”

Central to this nefarious scheme is the Matieni Community Centre, an organisation which has been alleged to have been fraudulently revived after becoming defunct, solely to obtain NLC funding.

Kganyago stated that “the original members of Matieni Community Centre were unaware of the application, and the individuals listed on the NLC application were not legitimate members".

The alleged acts of deception mirrored similar practices evident in the operations of Lethabong and WAR RNA, where falsified documentation submitted by individuals lacking legal standing compromised the integrity of these organisations.

The SIU’s findings delineate a stark misuse of public funds. Notably, Matieni alone received R23 million; a portion of this, amounting to R5.975 million, was allegedly diverted to the Mbidzo Development Programme.

This entity is linked to Collin Tshisimba, an individual already known for his involvement in other NLC fraud cases. A further revelation was that R6.2 million was paid to Wa Rothe Construction, which added layers to the complexity of misallocated funds.

The Lethabong Old Age Home was another major recipient of NLC funds, obtaining R20 million, with a suspected R15 million funnelled into Mbidzo’s account. Additionally, WAR RNA secured R20 million, with R5 million similarly redirected to Mbidzo.

These findings expose how Mbidzo, under Tshisimba's control, allegedly utilised the stolen funds to cover legal fees for the purchase of a farm in Louis Trichardt, Limpopo.

The property was registered in the name of Promise Kharivhe, Tshisimba’s life partner, raising further questions about the extent of the operation.

Kganyago stressed that the preservation order is a critical part of the SIU’s accountability measures, explaining that it is “part of implementing SIU investigation outcomes and consequence management to recover financial losses suffered by State institutions because of corruption or negligence.”

This legal directive is one of various measures the SIU is aggressively pursuing to right the wrongs of corruption.

Moreover, the SIU has referred any evidence indicating potential criminal conduct to the National Prosecuting Authority (NPA) for further action, in accordance with the Special Investigating Units and Special Tribunals Act 74 of 1996, said Kganyago.

DAILY NEWS