The independent public integrity and anti-corruption authority for a corruption-free South Africa.

SIU secures Special Tribunal order setting aside R2.96 million NLC grant awarded to highjacked NPO

The Special Investigating Unit (SIU) obtained a tribunal ruling declaring a R2.96 million grant from the National Lotteries Commission (NLC) to the non-profit Fire Charismatic Chapel International unconstitutional, unlawful, invalid and of no force and effect. The tribunal ordered those who benefited from the misappropriation, including hijackers of the NPO and former NLC officials, to repay the funds to the SIU or the National Revenue Fund.

The Tribunal ordered the following repayments:

  • Matamela Magodi Consulting and Magodi: R200,000;
  • Mr Mukondeleli Collin Tshisimba and Ndavha Management: R678,000;
  • Matodzi Mashele and Mishsone Trading: R520,000;
  • Macronym 37 and Somandla Sibisi: R1 million;
  • Simba Community Development Foundation: R19,000;
  • Mosokodi Business Trust, Mr Philemon Letwaba (Former NLC COO); and Mr Johannes Kgomotsho Letwaba, as trustee: R500,000;
  • Ms Rebotile Malomane, Letwaba’s second wife: R40,000
  • Hijacked Fire Charismatic must pay the outstanding balance of approximately R3,000, together with interest. If Fire Charismatic Chapel does not pay, Mr Lufuno Moses Maise (Fire Charismatic purported Chairperson) and Lebea are personally responsible for the debt.

The Tribunal found that the grant was awarded through fraud and misrepresentation after the SIU investigation revealed that Fire Charismatic never organised the festival it claimed to have hosted. Instead, the event was organised by Macronym 37 (Pty) Ltd after the municipality had advertised and awarded a three-year contract for the festival.

The SIU investigation established that Fire Charismatic Chapel International, an NPO established in 2008 to promote the gospel of Jesus Christ, had been hijacked. The grant application submitted to the NLC was not signed by the legitimate office bearers recorded with the Department of Social Development.

On 17 March 2017, Fire Charismatic submitted a grant application seeking funding to host a festival promoting local artists and musicians. Ms Maria Lebea was added to the NLC application as a director without her knowledge by Ms Matdozi Mashele, who forged her signature.

Although the festival took place from 14 to 16 April 2017, the grant funding agreement for R 2,960,000 was only signed at the NLC’s Hatfield offices on 18 April 2017 – a day after the festival had already concluded.

On 20 April 2017, the NLC paid the first tranche of R2.368 million into Fire Charismatic’s bank account, which had a balance of only R5.27 before the deposit.

The SIU found that shortly after receiving the funds, the money was rapidly distributed to various entities and individuals, including:

  • R200,000 to Magodi Consulting, owned by Mr Matamela Magodi, for purported auditing services;
  • R19,000 to Simba Community Development Foundation for a “traditional group performance” service;
  • R648,000 to Ndavha Management, owned by Mr Mukondeleli Collin Tshisimba, purportedly for travelling services;
  • R1 million to Macronym 37, whose director is Mr Somandla Sibisi, described as sponsorship, despite the payment being made eight days after the festival had ended; and R500,000 to Mishsone Trading, linked to Mashele, purportedly for ablution facilities.

Eighteen months after the festival, on 29 October 2018, the NLC paid a further R592,000 to Fire Charismatic.

Following the second payment, the SIU established that:

  • R500,000 was transferred to the trust account of former NLC Chief Operating Officer Mr Philemon Letwaba;
  • R40,000 was paid to Ms Rebotile Malomane, Letwaba’s second wife;
  • R30,000 was paid to Ndavha Management; and
  • R20,000 was paid to Mishsone Trading.

The SIU investigation further revealed that Tshisimba facilitated the sponsorship arrangement despite there being no written agreement. Evidence also showed that Tshisimba played a central role in assisting several NPOs to obtain NLC funding through his connections with certain NLC officials.

The Tribunal highlighted that the NLC did not properly verify Fire Charismatic’s legitimacy, discovering during a surprise site visit that its listed office address was that of a newspaper. The Tribunal also found that the R1 million paid to Macronym 37 was not a “genuine” sponsorship, but a fraudulent transaction designed to “divert” grant funding.

President Cyril Ramaphosa authorised the SIU to investigate allegations of corruption and maladministration at the National Lotteries Commission through Proclamation R32 of 2020, including recovering financial losses suffered by the State.

The Tribunal’s order forms part of the SIU’s ongoing efforts to recover public funds lost through corruption, implement the outcomes of its investigations, and strengthen consequence management across the public sector.

In line with the Special Investigating Units and Special Tribunals Act 74 of 1996, the SIU will refer any evidence of criminal conduct uncovered during its investigation to the National Prosecuting Authority for consideration of criminal prosecution.

Enquiries:
Selby Makgotho
Spokesperson: Special Investigating Unit
Cell: 083 718 6128
SIUMedia@siu.org.za

NLC FIRE CHARISMA JUDGMENT 1Download