The National Lotteries Commission has welcomed the expansion of the Special Investigating Unit investigation into its affairs, saying it will allow law enforcement agencies the space and time to complete their work without interference.

In a statement issued on 5 February 2026, the NLC noted Proclamation R293 of 2025, signed by President Cyril Ramaphosa, which amends Proclamation R32 and broadens the scope and timeframe of the SIU’s investigation into the commission. The amended proclamation empowers the SIU to investigate additional matters and procurement related transactions covering the period from 1 January 2014 to 10 October 2025.

The statement follows an announcement by the SIU on Wednesday that it had secured a second settlement agreement in its investigation into the misappropriation of NLC grant funding linked to the 2016 Rio Olympic Games Roadshow Send Off campaign.

NLC board chairperson Professor Barney Pityana said the commission regarded the SIU investigation as an independent legal process conducted in terms of the Special Investigating Units and Special Tribunals Act.

“The NLC wishes to emphasise that the SIU investigation is an independent legal process. It is in the public interest that law enforcement agencies are afforded the necessary space and time to conduct their work thoroughly, without interference or parallel public commentary that may compromise the integrity of the investigation,” Pityana said.

He added that the commission would not comment on specific projects, transactions or matters that fall within the scope of the investigation while it is under way, and would act on the findings and recommendations of the final SIU report once the process is concluded.

The SIU on Wednesday announced that the Special Tribunal had made an order directing Imbizo Events to repay R70 000 in two equal instalments. This marks the second recovery in the matter. In December 2025, the SIU secured a settlement agreement with Minenhle Dlamini, who repaid R50 000 she had irregularly received from the Mshandukani Foundation non profit organisation.

According to the SIU, both recoveries form part of a broader effort to ensure that public funds are returned to the state and redirected to lawful beneficiaries.

The investigation relates to NLC grant funding of R24.98 million approved for the Rio Olympic Games Roadshow Send Off campaign in 2016. The SIU found that the Mshandukani Foundation NPO, which had been registered only months before receiving the funding, was used as a conduit to channel the grant money. The application was submitted by the South African Sports Confederation and Olympic Committee on behalf of the foundation and was approved within six days.

Funds intended for Olympic awareness events were instead diverted to entities and individuals linked to former NLC officials and their associates. The SIU said R15.35 million was paid to Ironbridge Travel Agency, which it linked to former NLC chief operating officer Phillemon Letwaba. A further R7.23 million was paid to Mshandukani Holdings, controlled by Mashudu Shandukani, and R3 million to Mosokodi Business Trust, also linked to Letwaba. The investigation also identified direct payments made to former NLC officials and associates.

In April 2025, the SIU obtained a preservation order from the Special Tribunal freezing assets worth R24.9 million. These included two luxury properties and a specialised Powerstar vehicle that the SIU said were acquired using misappropriated grant funds.

The SIU has since filed a review application at the Special Tribunal seeking to have the NLC’s decision to award funding to SASCOC declared invalid and set aside. The application further seeks an order directing all respondents to repay the full R24.98 million that was unduly paid. The matter was heard in December 2025 and judgment is still pending.

SIU spokesperson Kaizer Kganyago said the unit remains focused on recovering losses suffered by the state and holding those responsible accountable. He said the investigation forms part of a wider mandate authorised by President Ramaphosa through Proclamation R32 of 2020 to probe allegations of corruption and maladministration within the NLC.

The SIU is empowered under the Special Investigating Units and Special Tribunals Act of 1996 to institute civil proceedings in the High Court or the Special Tribunal to address wrongdoing it uncovers. Any evidence of criminal conduct identified during the investigation will be referred to the National Prosecuting Authority for further action.

In its statement, the NLC said it remains committed to cooperating fully with the SIU and to upholding the principles of accountability, transparency and good governance in the administration of public funds. The commission said further communication would be issued at an appropriate time, guided by the outcome of the SIU’s investigation.

The expanded mandate is expected to allow the SIU to examine a wider range of historical transactions at the NLC, as scrutiny of the commission’s grant funding processes continues.