The Special Investigating Unit (SIU) has secured a judgment in the Special Tribunal declaring unlawful and invalid a R9 million grant awarded by the National Lotteries Commission (NLC) for the construction of a sports complex in Protea Glen, Soweto, that was never built.
The ruling sets aside the grant agreement awarded to the Motheo Sports and Entertainment Foundation and orders several individuals and entities involved in the project to repay millions of rand that had already been disbursed.
The Tribunal ordered Jeremane Petrus Sedibe, identified by the SIU as the mastermind behind the scheme, together with Motheo, former NLC officials, associated individuals and companies involved in the unlawful conduct, to jointly and severally repay R6 million.
According to the SIU, the NLC approved funding of R9 million to Motheo through its proactive funding process. The money was to be paid in three tranches. However, only the first two tranches, amounting to R6 million, were released.
The third tranche of R3 million was withheld after the SIU investigation revealed that the funds had been diverted and no sports complex had been constructed. The investigation also found that a falsified progress report and irregular approvals prevented the NLC from justifying the release of the final payment.
The Tribunal also upheld an earlier preservation order preventing former NLC employee Sanele Dlamini from accessing his pension benefits until the SIU has recovered the misused funds in full. Dlamini, who approved the second tranche payment of R3 million to Motheo, was also ordered to pay the legal costs associated with the pension preservation order granted on 10 June 2025.
The judgment follows an SIU investigation into the grant approval process. The investigation found that Motheo had initially applied for more than R61.6 million from the NLC, but its application was unsuccessful after the commission approved only R70,000, an amount the non-profit organisation declined.
Despite the unsuccessful application, on 14 April 2021, former NLC Grant Funding Projects Manager Marubini Ramatsekisa recommended that Motheo receive R9 million through the NLC’s proactive funding process. The recommendation was approved by former Acting Chief Operations Officer Nkhesho Njoni.
On 24 May 2021, Motheo director Tebogo Joseph Mohlala and Nonhlanhla Matshazi, co-director of Londilox NPC, signed the grant agreement with the NLC.
The first payment of R3 million was made on 9 June 2021. The SIU investigation traced how portions of the funds were subsequently transferred to various companies and individuals.
Investigators found that R950,000 was transferred to PSKO (Pty) Ltd, a company owned by Sedibe, while R500,000 was transferred to Londilox NPC. A further R400,000 was paid to Synercon (Pty) Ltd.
Between June and August 2021, investigators also identified teller cash withdrawals totalling R750,000, ATM withdrawals amounting to R282,850 and additional purchases, bank charges and transfers totalling R117,150 from the Motheo account.
The SIU further found that a progress report covering the period between 9 June and 30 November 2021 falsely represented the status of construction and expenditure. The report was prepared by Ziphozinhle Khoza of SRSQS Quantity Surveyors and approved by her superior, Marito Mabunda.
Based on the evidence gathered during the investigation, the SIU said it had established a prima facie case of fraud, theft and corruption against Sedibe, Motheo, Matshazi, Khoza and others involved in the project.
In addition to the order requiring repayment of R6 million, the Tribunal directed Londilox NPC and Matshazi to repay R500,000 jointly and severally, Synercon to repay R400,000, PSKO to repay R950,000 and 2MC to repay R382,205.
The Tribunal also ordered Mohlala, Sedibe and Matshazi, as signatories to Motheo’s bank account, to repay R1,644,795 representing funds withdrawn or spent directly from the account.
President Cyril Ramaphosa authorised the SIU through Proclamation R32 of 2020 to investigate allegations of corruption and maladministration at the National Lotteries Commission and recover financial losses suffered by the State.
The SIU said the Tribunal’s orders form part of its ongoing efforts to recover public funds lost through corruption and strengthen consequence management across the public sector. In line with the Special Investigating Units and Special Tribunals Act, any evidence of criminal conduct uncovered during the investigation will be referred to the National Prosecuting Authority for further action.
