{"id":10425,"date":"2025-10-13T21:33:57","date_gmt":"2025-10-14T00:33:57","guid":{"rendered":"https:\/\/focusgn.com\/africa\/?p=10425"},"modified":"2026-04-19T12:59:02","modified_gmt":"2026-04-19T15:59:02","slug":"siu-expands-probe-to-include-procurement-irregularities","status":"publish","type":"post","link":"https:\/\/focusgn.com\/africa\/siu-expands-probe-to-include-procurement-irregularities","title":{"rendered":"SIU expands probe to include procurement irregularities"},"content":{"rendered":"\n<p>Among the issues under scrutiny is the NLC\u2019s expenditure of R24.7 million (\u20ac1.3m) on advertorials in the Sunday World newspaper between 2020 and 2022, aimed at countering media expos\u00e9s on grant misuse.<\/p>\n\n\n\n<!--more-->\n\n\n\n<p>South Africa.- The <strong>Special Investigating Unit (SIU<\/strong>) has widened its investigation of the <strong>National Lotteries Commission (NLC)<\/strong> to include procurement practices in addition to grant-related corruption. Authorised by <strong>President Cyril Ramaphosa<\/strong>, the extended mandate comes 18 months after the SIU sought greater investigative authority.<\/p>\n\n\n\n<p>The original <strong>2020 proclamation<\/strong> restricted the SIU to examining grant-related corruption between 2014 and 2020, leaving procurement issues untouched despite evidence of irregularities from whistleblowers and NLC-commissioned audits. The new mandate allows the SIU to investigate specific procurement cases, driven largely by <strong>a 2023 audit from TSU Investigations Services<\/strong>. The report uncovered violations involving hundreds of millions of rand, including questionable contracts and payments.<\/p>\n\n\n\n<p>Among the issues under scrutiny is the NLC\u2019s expenditure of <strong>R24.7 million<\/strong> (\u20ac1.3m) on advertorials in the Sunday World newspaper <strong>between 2020 and 2022<\/strong>, aimed at countering media expos\u00e9s on grant misuse. Another case involves <strong>a R1.7 million (\u20ac90,000) contract<\/strong> for a flashmob event that never took place, linked to <strong>MSG Group Sales and Elsiscope Digital Solutions<\/strong>.&nbsp;<\/p>\n\n\n\n<p>The SIU will also examine the appointment of legal firms, including <strong>Maluks<\/strong>, which engaged in litigation against former Trade, Industry and Competition Minister, <strong>Ebrahim Pate<\/strong>l, and a tender awarded to <strong>Neo Africa<\/strong> for a non-existent hacking investigation.<\/p>\n\n\n\n<p>NLC Commissioner <strong>Jodi Scholtz<\/strong> welcomed the expanded probe, emphasising its role in strengthening oversight. She said: \u201cThis development underscores our commitment to transparency and good governance. We look forward to continuing our collaboration with the SIU to address any irregularities and ensure that our operations are aligned with the highest standards of integrity and accountability.\u201d<\/p>\n\n\n\n<p>The SIU\u2019s earlier efforts have led to recoveries, including a court order for a former NLC board member to repay <strong>R21 million<\/strong> (\u20ac1.1m) in misallocated grants. High-profile figures, such as actress<strong> Terry Pheto <\/strong>and<strong> <\/strong>musician<strong> Arthur Mafokate<\/strong>, have been linked to grant fraud cases, highlighting the misuse of funds intended for community projects in arts, sports and charity.<\/p>\n\n\n\n<p>The delay in approving the extension raised concerns because the Department of Justice has stalled the SIU\u2019s request <strong>since April 202<\/strong>4. The process spanned three justice ministers, with current minister <strong>Mmamoloko Khubayi<\/strong> finalising the approval <strong>10 months<\/strong> after her appointment. Some allegations suggest political interference, though no concrete evidence has surfaced.<\/p>\n\n\n\n<p>Scholtz noted that the NLC has independently investigated some procurement issues excluded from the SIU\u2019s mandate and shared findings with authorities. The SIU will receive these reports, which may lead to further recoveries or prosecutions. However, the proclamation\u2019s limits exclude certain accounting and auditing firms implicated in enabling lottery mismanagement.<\/p>\n\n\n<div id=\"see-also-container\">\n\t\t\t<span class=\"see-also-label\">See also:<\/span><\/p>\n<div class=\"related-article\">\n\t\t\t\t<img decoding=\"async\" class=\"related-article__thumbnail\" src=\"https:\/\/focusgn.com\/africa\/wp-content\/uploads\/sites\/7\/2025\/09\/justice-book_-Proxima-Studio-900x600-300x200.jpg\" alt=\"\"><\/p>\n<p class=\"related-article__text\">\n\t\t\t\t\t<span class=\"see-also-label-strong\">See also:<\/span> <a href='https:\/\/focusgn.com\/africa\/former-nlc-secretary-hit-with-second-punitive-costs-ruling'>Former NLC secretary hit with second punitive costs ruling<\/a>\n\t\t\t\t<\/p>\n<\/p><\/div>\n<\/p><\/div>","protected":false},"excerpt":{"rendered":"<p>Among the issues under scrutiny is the NLC\u2019s expenditure of R24.7 million (\u20ac1.3m) on advertorials in the Sunday World newspaper between 2020 and 2022, aimed at countering media expos\u00e9s on grant misuse.<\/p>\n","protected":false},"author":2395,"featured_media":10427,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"is_press_release":false,"is_interview":false,"is_opinion":false,"focusai_summary":"The Special Investigating Unit (SIU) in South Africa has expanded its mandate to probe procurement irregularities at the National Lotteries Commission (NLC), in addition to ongoing grant-related corruption. This extension, authorized by President Cyril Ramaphosa, follows an audit uncovering significant financial misconduct, including questionable contracts and payments for non-existent services. NLC Commissioner Jodi Scholtz welcomed the move, emphasizing a commitment to transparency and good governance amidst allegations of political interference and delayed approvals.","focusai_entities":"National Lotteries Commission (NLC), Special Investigating Unit (SIU), President Cyril Ramaphosa, TSU Investigations Services, Sunday World, MSG Group Sales, Elsiscope Digital Solutions, Maluks, Neo Africa, Jodi Scholtz, Ebrahim Patel, Department of Justice, Mmamoloko Khubayi, Terry Pheto, Arthur Mafokate","focusai_location":"South Africa","focusai_target_profile":"ceo_executive (0.9), regulator (1.0), compliance_legal (1.0), operator_casino (0.7), marketing_crm (0.7), payments_fraud_aml (0.8), investor_analyst (0.8), supplier_vendor (0.9), journalist_researcher (1.0)","focusai_suggestions":[{"label":"SIU mandate implications","query":"What specific changes to the NLC's governance framework and internal controls are anticipated as a direct result of the SIU's expanded investigative mandate?"},{"label":"Vendor risk assessment","query":"How will the NLC and other state-affiliated gaming entities enhance their due diligence and procurement processes to mitigate risks associated with implicated B2B vendors and prevent future irregularities?"}],"footnotes":""},"categories":[60023,60011],"tags":[2689],"class_list":["post-10425","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-legal-news","category-south-africa","tag-gambling-regulation"],"_links":{"self":[{"href":"https:\/\/focusgn.com\/africa\/wp-json\/wp\/v2\/posts\/10425","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/focusgn.com\/africa\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/focusgn.com\/africa\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/focusgn.com\/africa\/wp-json\/wp\/v2\/users\/2395"}],"replies":[{"embeddable":true,"href":"https:\/\/focusgn.com\/africa\/wp-json\/wp\/v2\/comments?post=10425"}],"version-history":[{"count":3,"href":"https:\/\/focusgn.com\/africa\/wp-json\/wp\/v2\/posts\/10425\/revisions"}],"predecessor-version":[{"id":10472,"href":"https:\/\/focusgn.com\/africa\/wp-json\/wp\/v2\/posts\/10425\/revisions\/10472"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/focusgn.com\/africa\/wp-json\/wp\/v2\/media\/10427"}],"wp:attachment":[{"href":"https:\/\/focusgn.com\/africa\/wp-json\/wp\/v2\/media?parent=10425"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/focusgn.com\/africa\/wp-json\/wp\/v2\/categories?post=10425"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/focusgn.com\/africa\/wp-json\/wp\/v2\/tags?post=10425"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}