The Tribunal declared the grant to Fire Charismatic Chapel International<\/strong> unconstitutional, unlawful, invalid and of no force and effect after the SIU found that the NPO had been hijacked and used to obtain funding for a festival it did not organise.<\/p>\n\n\n\n The festival was held from April 14 to 16, 2017, but the R2.96m (US$183,395) funding agreement was only signed at the NLC’s Hatfield offices on April 18, after the event had ended. The NLC paid R2.368m (US$146,715) into Fire Charismatic’s bank account on April 20. The account had held only R5.27 before the payment.<\/p>\n\n\n\n The SIU found that the money was subsequently distributed among several companies, individuals and organisations. These included R200,000 (US$12,392) to Magodi Consulting, owned by Matamela Magodi, for purported auditing services; R19,000 (US$1,177) to Simba Community Development Foundation for a “traditional group performance”; and R648,000 (US$40,149) to Ndavha Management for purported travelling services.<\/p>\n\n\n\n A further R1m (US$61,959) was paid to Macronym 37, whose director is Somandla Sibisi, described as sponsorship, while R500,000 (US$30,979) went to Mishsone Trading, linked to Matodzi Mashele, allegedly for ablution facilities.<\/p>\n\n\n\n The Tribunal found that the R1m (US$61,959) payment to Macronym 37 was not a genuine sponsorship but a fraudulent transaction intended to divert the NLC grant.<\/p>\n\n\n\n The NLC later paid another R592,000 (US$36,679) to Fire Charismatic on October 29, 2018, about 18 months after the festival. The SIU found that R500,000 (US$30,979) from this payment was transferred to the trust account of Philemon Letwaba, former NLC chief operating officer, while R40,000 (US$2,478) went to Rebotile Malomane, Letwaba’s second wife, and a further R20,000 (US$1,239) was paid to Mishsone Trading.<\/p>\n\n\n\n The Tribunal ordered repayments of R200,000 (US$12,392) from Matamela Magodi and Magodi Consulting; R678,000 (US$41,983) from Mukondeleli Collin Tshisimba and Ndavha Management; R520,000 (US$32,218) from Matodzi Mashele and Mishsone Trading; and R1m (US$61,959) from Macronym 37 and Somandla Sibisi.<\/p>\n\n\n\n Simba Community Development Foundation was ordered to repay R19,000 (US$1,177), while Mosokodi Business Trust, Philemon Letwaba and Johannes Kgomotsho Letwaba, as trustee, were ordered to repay R500,000 (US$30,979). Malomane was ordered to repay R40,000 (US$2,478).<\/p>\n\n\n\n Fire Charismatic Chapel must also repay an outstanding amount of about R3,000 (US$186), plus interest. If the NPO fails to pay, its purported chairperson, Lufuno Moses Maise, and Lebea will be personally liable for the debt.<\/p>\n\n\n\n The grant application submitted to the NLC was not signed by the office bearers registered with the Department of Social Development. Maria Lebea was also listed as a director on the application without her knowledge after Matodzi Mashele allegedly forged her signature.<\/p>\n\n\n\n The Tribunal found that the grant was awarded through fraud and misrepresentation after the SIU established that Fire Charismatic never organised the festival it claimed to have hosted. Instead, the event was organised by Macronym 37 after a municipality had advertised and awarded a three-year contract for it.<\/p>\n\n\n\n The Tribunal also criticised the NLC’s verification processes. During a surprise site visit, investigators found that the address provided for Fire Charismatic was occupied by a newspaper, indicating that the NLC had failed to properly verify the NPO’s listed premises.<\/p>\n\n\n\n The SIU said Tshisimba also facilitated the sponsorship arrangement despite there being no written agreement. Its investigation found evidence that he assisted several NPOs in securing NLC funding through relationships with certain NLC officials.<\/p>\n\n\n\n The investigation was authorised under Proclamation R32 of 2020, which empowered the SIU to investigate corruption and maladministration at the NLC and recover losses suffered by the State.<\/p>\n\n\n\n The SIU said evidence of criminal conduct uncovered during the investigation will be referred to the National Prosecuting Authority for consideration of prosecution under the Special Investigating Units and Special Tribunals Act 74 of 1996.<\/p>\n\n\nRepayment amounts set<\/h2>\n\n\n\n
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