SIU freezes R3,6m Joburg mansion linked to lottery grant corruption

The Special Investigating Unit (SIU) has secured a preservation order to freeze a multimillion property allegedly bought with some of the R36m lotteries grants meant for community projects.

The SIU said on Wednesday that the property in Midstream near Midrand was registered under Alfred Muzwakhe Sigudhla, director of Southern African Youth Movement (SAYM) who was also the director of Smart Safety PPE.

The SAYM received R23m from the National Lotteries Commission (NLC) to open old age homes in rural province in 2017. Malusi we Sizwe NPC received R13m for agricultural projects in KZN but transferred R896,980 to Trizaflo (Pty) Ltd, which then paid R2.1m towards the same property.

SIU spokesperson Kaizer Kganyago said the order by the Special Tribunal interdicts Ishmael Mathibe, the current director of Smart Safety PPE, and any other party from selling, disposing, leasing, encumbering transferring, donating, or dealing in any manner whatsoever to the immovable property.

Kganyago said the unit's investigation revealed that funds intended for community projects, including agricultural development and old-age homes were diverted to purchase the property through a network of non-profit companies and private entities.

“Sigudhla, who is cited in the tribunal order, serves as the chairperson of the SA Youth Movement NPC, which received R23m from the NLC for old-age homes in rural provinces. He signed the grant agreement on September 15, 2017 and diversion for an additional R7.5m on May 21, 2019 despite a lack of proof of project delivery,” Kganyago said. 

He said in October 2018, Sigudhla signed as a director of Smart Safety PPE in bank agreements and later remained an “interested party” on the company's bank account after being replaced by Mathibe.

“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 order forms part of a broader investigation into corruption involving NLC grants intended for community development projects.” 

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