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SIU ready to recover R21m in lottery grant funding
SIU ready to recover R21m in lottery grant funding

TimesLIVE

timea day ago

  • Business
  • TimesLIVE

SIU ready to recover R21m in lottery grant funding

The Special Investigating Unit (SIU) says it has already started the process of executing an order of the Special Tribunal which set aside grant funding of R21m made by the National Lotteries Commission (NLC). The tribunal reviewed and set aside two NLC grant funding applications and ordered a former board member, advocate William Huma, to pay back the amount in full. The SIU said on Monday this was the first judgment that set aside grant funding in its NLC investigation. 'The SIU has now filed 18 NLC review applications to set aside grants. The total value of the funds involved in these review and preservation applications amounts to R320m. More review applications can be expected.' In the judgment in June, the Special Tribunal reviewed and set aside the 2019 NLC decision to award R16.5m to the Samaritan Initiative NPO, a hijacked entity allegedly controlled by Huma's relatives. The funds were allocated for community upliftment projects, including a chicken farming initiative for the residents of Marikana, North West. 'The SIU investigation found that the funds were misappropriated by Silverlite Trading (Pty) Ltd, which Huma later took control as the sole director. The farm is now in a dilapidated state and has never benefited the community of Marikana,' the SIU said. The tribunal also set aside a 2020 grant of R4.6m to Reagile NPC, directed by Huma's wife and nephew. The SIU said no tangible community benefits were delivered. It said the tribunal found that Huma abused his position to funnel funds to entities linked to his family. 'His conduct was deemed 'egregious, negligent, and dishonest', causing the NLC to suffer losses of R21,158,118.' The tribunal said Huma failed to disclose conflicts of interest, contravening the Lotteries Act and his fiduciary duties. 'To ensure there is cash available to recover the full amount lost by the NLC, the SIU, through the tribunal, preserved R10m, which are the proceeds of a sale of Huma's Waterkloof property, which amount is now executable.' As part of the ongoing NLC investigations, the SIU preserved a number of assets belonging to Huma and linked to NLC funds. These include a farm and a boutique hotel, both in North West. This preservation is linked to another NLC investigation. 'As part of implementing the order, the SIU will conduct auctions for the properties in question. The proceeds generated from these auctions will be directed back to the NLC to support projects aimed at uplifting communities, rather than benefiting individuals or their close associates.' The SIU was authorised in terms of a proclamation issued by President Cyril Ramaphosa in 2020 to investigate allegations of corruption and maladministration in the affairs of the NLC and recover any financial losses suffered by the state.

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