Lottery projects probe gathers pace

Independent investigation into multimillion-rand projects lauched.

Minister Ebrahim Patel confirms move in letter to portfolio committee.

The department of trade, industry and competition (DTI) has commissioned an independent investigation into multimillion-rand lottery-funded projects.

This was confirmed by Minister Ebrahim Patel in a letter dated 15 June to the chair of parliament’s portfolio committee on trade and industry.

The inquiry is investigating four multimillion-rand lottery-funded projects. It is being conducted by audit firm Nexia-SABT. It is separate from the independent inquiry commissioned by the National Lotteries Commission’s (NLC) board in February.

“The grants provided by the NLC play an important role in supporting the most vulnerable in our society. It is critical that the money reaches the intended recipients,” Patel’s letter states.

Patel’s letter says DTI received allegations of maladministration at the NLC.

“When these allegations were brought to my attention, and in order to inspire public confidence in the institution, I requested an independent investigation,” he wrote.

The decision to investigate follows an insufficient response from the NLC “engagement” with it by DTI.

“Subsequently, given the nature of the allegations, the public interest in the affairs of the institution and the need to restore public confidence, the director-general appointed an independent forensic firm to conduct an investigation into allegations regarding four proactive funded projects.”

Proactive funding was introduced in a 2015 amendment to the Lotteries Act that allows the NLC, it’s board, or the minister to identify a need and fund it without first receiving a grant application.

The NLC identifies a nonprofit organisation to oversee these projects. This had led to organisations with no experience in construction to manage multimillion-rand infrastructure projects, like old-age homes.

Based on the people and organisations its investigators have interviewed, it is clear that the investigation is concentrating on projects involving Pretoria lawyer Lesley Ramulifho and his associates.

They are Denzhe Primary Care, I Am Made 4 God’s Glory, as well as Zibsifusion and Dynosys, which each received R20 million for a project to build toilets in Limpopo and the Eastern Cape.

Among the people the NLC investigators have interviewed are Takelani Tshikalange, the found

I’m glad something is finally happening

er of Denzhe Primary Care, and members of the NPO’s board.

Denzhe was hijacked and used to successfully apply for R27.5 million for a drug rehabilitation centre that has never been completed. At least R20 million in lottery funding is unaccounted for.

Tshikilange confirmed that she and four other founding members who set up Denzhe in 2012 have sworn affidavits about the hijacking of their NPO. Tshikilange said she had also confirmed that she had not signed an affidavit that Ramulifho submitted to a court as part of litigation he is pursuing against GroundUp.

“I am glad that something is finally happening and that the truth will finally come out,” Tshikilange said. – GroundUp