The ruling follows an application brought by the Special Investigating Unit<\/strong> (SIU), which was authorised under Presidential Proclamation 32 of 2020 to investigate allegations of maladministration, corruption and unlawful conduct involving the NLC, including the allocation of proactive grant funding to the Motheo Sports and Entertainment Foundation.<\/p>\n\n\n\n According to a Special Tribunal judgment published by the Southern African Legal Information Institute (SAFLII), the funding decision and grant agreement were declared unlawful<\/strong> because the proactive funding process failed to comply with the National Lotteries Act and funds intended to construct the Protea Glen Sports Complex in Soweto were diverted and the project was never completed.<\/p>\n\n\n Judge Andre Petersen ordered multiple respondents to repay R6m (US$359,500) jointly and severally after determining that two tranches of R3m (US$179,800) had been paid before the third was withheld. <\/p>\n\n\n\n The judgment shows that former NLC Grants Funding Projects Manager Marubini Ramatsekisa prepared the proactive funding proposal recommending the R9m (US$538,600) grant, which was approved the same day by then Acting Chief Operations Officer Nkhesho Njoni. The NLC’s Quality Assurance Committee subsequently approved the allocation, despite Judge Petersen finding there was no evidence that the independent research and stakeholder consultation required under the National Lotteries Act had been undertaken.<\/p>\n\n\n\n After the first R3m (US$179,800) tranche was paid in June 2021, the funds were transferred to entities <\/strong>and individuals linked to those controlling the foundation instead of being used to build the sports complex, including R950,000 (US$56,900) to PSKO, R500,000 (US$30,000) to Londilox and R400,000 (US$24,000) to Synercon. After the second tranche was approved, R2.123m (US$127,200) was transferred to Petrus Sedibe’s personal bank account.<\/p>\n\n\n\n Former NLC Senior Manager: Grant Operations Sanele Dlamini said he relied on documentation already processed internally and could not reasonably have been expected to detect sophisticated fraud. However, the tribunal rejected his explanation, noting that photographs showed an undeveloped site <\/strong>despite claims that earthworks and fencing were underway. Judge Petersen concluded that Dlamini’s conduct was, at a minimum, reckless and, on the probabilities, dishonest<\/strong> after finding he had failed to visit the site before approving the second tranche.<\/p>\n\n\n\n The ruling follows another recent Special Tribunal decision ordering the repayment of R4m<\/a> (US$223,000) in unlawful NLC funding awarded to the Mshandukani Foundation, and comes as the NLC has earmarked significant funds<\/a> for litigation tied to its wider anti-corruption efforts.<\/p>\n\n\n![\"\"](\"https:\/\/focusgn.com\/africa\/wp-content\/uploads\/sites\/7\/2026\/07\/COURT-NLC.jpeg\")
Grant diversion uncovered<\/h2>\n\n\n\n
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