The Special Tribunal has ruled that a R2.96 million grant awarded by the National Lotteries Commission to Fire Charismatic Chapel International was unconstitutional, unlawful, and invalid. The decision followed an SIU investigation into alleged corruption linked to lottery funding.
The ruling orders multiple individuals and entities that benefited from the grant to repay the money to the SIU or the National Revenue Fund. Among those ordered to repay are former NLC chief operating officer Philemon Letwaba, his associates, and several companies that received payments from the grant.
According to the SIU, the tribunal found that Fire Charismatic Chapel International, a non-profit organization established to promote the Christian faith, had been hijacked and used to obtain lottery funding under false pretenses. The tribunal stated that the grant was awarded through fraud and misrepresentation after investigators found that Fire Charismatic never organized the festival it claimed to have hosted.
The investigation showed that the organization applied for funding in March 2017 to host a festival promoting local artists and musicians. However, investigators established that the festival was actually organized by Macronym 37 (Pty) Ltd, after the company had already secured a municipal contract to host the event.
The SIU said the grant application submitted to the NLC was not signed by the legitimate office bearers recorded with the Department of Social Development. Investigators also found that Maria Lebea was added to the NLC application as a director without her knowledge, after her signature was allegedly forged by another person linked to the application. The tribunal further noted irregularities in the approval process.
Although the festival took place from 14 to 16 April 2017, the grant funding agreement for R2.96 million was only signed at the NLC’s Hatfield offices on 18 April 2017, which was one day after the festival had already concluded. The SIU said the first tranche of R2.368 million was paid into the organization’s bank account on 20 April 2017, when the account balance was just R5.27.
After receiving the funds, the SIU found that the money was rapidly distributed to various entities and individuals. Payments included R1 million to Macronym 37, R648,000 to Ndavha Management, R500,000 to Mishsone Trading, R200,000 to Magodi Consulting, and R19,000 to the Simba Community Development Foundation. By 12 May 2017, only R616.02 remained in the NPO’s account.
The SIU also reported that a further R592,000 was paid to the organization in October 2018 despite concerns surrounding the project. Investigators later found that R500,000 from the second payment was transferred to Letwaba’s trust account, while R40,000 was paid to his second wife, Rebotile Malomane.
The tribunal was also critical of the NLC’s failure to verify the legitimacy of Fire Charismatic before approving the grant. The SIU said that during a surprise site visit, investigators discovered that the NPO’s listed office address was that of a newspaper. The SIU added that the tribunal found the R1 million paid to Macronym 37 was not a genuine sponsorship, but rather a fraudulent transaction intended to divert grant funding.
The SIU said the ruling is part of ongoing efforts to recover public money lost through corruption and maladministration at the National Lotteries Commission. The unit also indicated that evidence of criminal conduct uncovered during the investigation would be referred to the National Prosecuting Authority for possible prosecution.
