Special Tribunal upholds preservation order on former NLC exec’s R2.8m pension
The SIU’s probe found that Letwaba allegedly diverted funds earmarked for good-cause projects into companies controlled by his wife, brother-in-law and close associates.
South Africa.- A legal application by former National Lotteries Commission (NLC) Chief Operating Officer Phillemon Letwaba to access his preserved R2.8m (€149,680) pension fund has been dismissed by the Special Tribunal.
Letwaba’s pension, held by the Liberty Group, was frozen under a preservation order obtained by the Special Investigating Unit (SIU) in September 2022 after he resigned amid disciplinary proceedings. The SIU’s probe into the NLC found that Letwaba allegedly diverted funds earmarked for community and good-cause projects into companies and organisations controlled by his wife, brother-in-law and close associates.
In his application to the tribunal, Letwaba argued that under the Pension Funds Act, only a recognised “court” such as a magistrate’s or high court, could authorise deductions from a pension. He claimed that the Special Tribunal did not meet that definition and therefore could not freeze or order deductions from his benefits.
Judge Margaret Victor, president of the Special Tribunal, dismissed this argument, stating that a narrow interpretation would create “an absurdity” and weaken broader efforts to protect public funds from misuse. She further noted that if the SIU succeeds in civil review proceedings to set aside questionable grants and recover losses, the pension preservation could become relevant in enforcing repayment orders.
The SIU, acting under the Special Investigating Units and Special Tribunals Act 74 of 1996, sought the preservation order as part of its wider investigation into mismanagement and corrupt conduct at the Lotteries Commission. Its investigations revealed multiple alleged irregularities, including transfers of lottery grant funds into companies linked to Letwaba and his networks rather than being used for projects benefiting vulnerable communities.
The Special Tribunal’s ruling reinforces the legal basis for freezing the benefits of NLC officials under investigation and makes clear that pensions cannot be accessed while allegations of lottery fund misallocation are addressed through civil or disciplinary proceedings.
Letwaba’s case is one of several linked to governance failures at the NLC, which have resulted in preservation orders on the benefits and assets of former executives, highlighting increased legal scrutiny over the management and distribution of lottery revenues.
