SIU freezes R2.7m used in NLC grant funds

Image source: Bruce Rolff – 123RF.com

Chauke was previously married to Alfred Muzwakhe Sigudla, a recipient of multiple grants from the National Lotteries Commission (NLC), until their divorce in 2021.

“This order prohibits Chauke from withdrawing or transferring the funds until the SIU completes a review application to cancel the grant funding that enabled the purchase of the land, thereby ensuring that the potentially misappropriated funds are secured,” the SIU said on Wednesday, 17 December.

In 2018, the SA Youth Movement NPC, chaired by Sigudla, received approximately R23m in funding from the NLC for the construction of old-age homes in KwaZulu-Natal and the Free State.

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“However, evidence collected by the SIU reveals that, after receiving these funds, Sigudla transferred a portion to his own companies' bank accounts and subsequently used them to acquire two luxurious properties, namely in Midstream Estate and Copperleaf Golf Estate.

“Notably, the Midstream property has been frozen pending completion of the review application into the legitimacy of the grant funding to recover misused NLC funds.

“The primary mission of the SIU is to recover proceeds from beneficiaries of NLC grant funding who are involved in unlawful activities, thereby restoring the State’s financial losses,” the SIU said.

Authorised by President Cyril Ramaphosa through Proclamation R32 of 2020, the SIU is dedicated to investigating allegations of corruption and maladministration within the NLC and to recovering financial losses incurred by the State.

The order from the Special Tribunal represents an important step in the SIU's ongoing efforts to combat corruption and ensure accountability and transparency in the management of public funds.