SIU Secures R2.7 Million Freeze in NLC Grant Misuse Case

Pretoria: The Special Investigating Unit (SIU) has successfully secured a preservation order from the Special Tribunal to freeze R2.7 million, inclusive of accrued interest, which originated from the sale of land allocated to Tintswalo Patience Chauke in her divorce settlement. Chauke was formerly married to Alfred Muzwakhe Sigudla, who was a beneficiary of several grants from the National Lotteries Commission (NLC) until their separation in 2021.

According to South African Government News Agency, the order restricts Chauke from withdrawing or transferring the funds until the SIU finalizes a review application aimed at rescinding the grant funding used for the land purchase. This measure is intended to secure potentially misallocated funds. In 2018, the SA Youth Movement NPC, under the leadership of Sigudla, received roughly R23 million from the NLC intended for the construction of old-age homes in KwaZulu-Natal and the Free State.

The SIU’s investigation uncovered that Sigudla redirected a portion of these funds to his personal business accounts and utilized them to acquire two high-end properties located in Midstream Estate and Copperleaf Golf Estate. Notably, the Midstream property has been frozen as the SIU continues its review into the legitimacy of the grant funding, with the goal of recovering any misused NLC funds.

The SIU emphasized its commitment to reclaiming proceeds from beneficiaries of NLC grant funding engaging in illegal activities to mitigate the State’s financial losses. Authorized by President Cyril Ramaphosa under Proclamation R32 of 2020, the SIU is tasked with probing corruption and maladministration within the NLC to recover State-incurred financial losses.

The Special Tribunal’s order marks a significant advancement in the SIU’s ongoing campaign to eradicate corruption and promote accountability and transparency in the management of public resources.