The Special Tribunal has declared the National Lotteries Commission’s (NLC) R4 million grant to the Mshandukani Foundation unlawful and ordered that the money be repaid with interest following a Special Investigating Unit (SIU) probe.
The SIU found that the non-profit organisation’s 2019 application for more than R4.7 million was based on a borehole project that had already been completed years earlier. The project was intended to provide clean water to communities in the Eastern Cape.
According to the SIU, former NLC Chief Operating Officer Phillemon Letwaba approved the funding, after which millions of rands were allegedly diverted to entities linked to the foundation’s leadership.
The investigation revealed that R3.6 million was paid to Preldon Construction CC, a company owned by the foundation’s chairperson, Pretty Mshandukani. Some of the money was allegedly transferred to Ironbridge Travelling Agency and Events, a company owned by Letwaba’s wife, while additional funds were paid to Mshandukani Holdings and other associates.
The SIU also found that the borehole work was of poor quality, the foundation lacked the required approvals to implement the project, and two employees of Mshandukani Holdings were listed as foundation members without their knowledge.
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