Lotto funding scandal: Beneficiary built student res instead of drug rehab centre

A property built using National Lotteries Commission (NLC) funds to serve as a rehab centre has been converted to student accommodation - and the man who obtained the grant is suspected of collecting money from National Students Financial Aid Scheme per month.

Alfred Sigudhla, a socialite whose R3.6m mansion has been frozen by the state over allegations of corruption, is under investigation by the the Special Investigating Unit (SIU) for the misuse of these funds.

The NLC funded property in Thaba Nchu, Free State, was meant to help deal with the drug addiction scourge in the area, but now inexplicably accommodates strictly NSFAS-funded students.  So serious is the drug problem in Thaba Nchu that a group of concerned community members have clubbed together to a centre to accommodate and support drug addicts.

The building where they were meant to be accommodated houses about 60 students from Motheo TVET College who share single rooms and has been operating for two years.

Sigudhla, through his non-profit company Southern African Youth Movement (SAYM) received R23m in 2017 from the NLC to initially build an old age home. But to the growing need for rehab centre, the building was to be repurposed for drug rehabilitation of young people.

According to the SIU, Sigudhla used some of the NLC grant to buy himself a property in Midstream, Centurion.

On Wednesday, the SIU announced that it has secured a preservation order to freeze Sigudhla's property preventing him from selling or transferring it until the investigations are complete. 

SIU spokesperson Kaizer 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 nonprofit companies and private entities.

“Sigudhla, who is cited in the tribunal order, serves as the chairperson of the SAYM. 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.

In Thaba Nchu students renting from the property told Sowetan they were not aware that it was meant to serves as a rehab centre. 

A person who introduced himself as the manager of the building, now known as Thaba Nchu Youth Centre, said their clients were strictly NSFAS-funded students.

“We are part of NSFAS-accredited accommodation providers in the area. We don't take cash from students, we get paid directly by the NSFAS,” said the manager. 

Ishmael Mnisi, NSFAS spokesperson, said their team in the Free State was verifying the accreditation status of the centre and requested more time to respond to Sowetan. 

Pastor David Masekwa from New Life New Birth rehab centre, which is located at Phalafala, a rural village in Thaba Nchu, said drug abuse was a pandemic with nyaope, Methcathinone (commonly known as cat) and heroine choking the youth. 

He did not know Sigudhla's rehab centre but said they were accepting patients from all over Thaba Nchu. 

“People are brought to us by their parents or they come here voluntarily. We have a waiting list of about 20 people who want to be part of the centre, but we can't help all of them. Already, we have 40 inpatients.

“Daily, we get more than 15 calls from people who want to send their loved ones to us. Some people inbox us on our social media pages looking for space,” he said.

He said their centre is self-funded but mostly relies on donations they receive from parents.

When contacted for comment yesterday Sigudhla said he could not speak as he was preparing for a funeral. He did not respond to our text message sent to him later in the day.   

The SIU said yesterday that Sigudhla, director of the Southern African Youth Movement (SAYM), was also the former director of Smart Safety PPE which were cited in the tribunal order. 

Kganyago said Sigudhla used SAYM, an NPO, to receive funding from the NLC while 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 his Midrand home.

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