SIU freezes R2.7 million linked to alleged Lotto looting in South Africa

The Special Investigating Unit has secured a preservation order from the Special Tribunal to freeze R2.7 million from the sale of land linked to National Lottery Commission (NLC) funding.

The land belongs to Tintswalo Chauke, following a divorce settlement with her former husband, Alfred Sigudla (pictured), who received several grants from the NLC.

In 2018, the SA Youth Movement NPC, chaired by Sigudla, received roughly R23 million in funding from the NLC for the construction of old-age homes in KwaZulu-Natal and the Free State.

An investigation by the SIU revealed that once these funds were received, Sigudla transferred some of the money into his companies’ bank accounts. This money was then used to purchase luxury properties.

These properties were located in Midstream Estate and Copperleaf Golf Estate.

“Notably, the Midstream property has been frozen pending completion of the review application into the legitimacy of the grant funding to recover misused NLC funds,” the SIU said.

“The property in Copperleaf Golf Estate, purchased for approximately R800,000 using funds earmarked for community development, was co-owned by Sigudla and Chauke in 2018 and was subsequently transferred to Chauke as part of their divorce settlement.”

Further investigations have found that the proceeds from the sale of the property, which amounted to R2.55 million, currently reside in Chauke’s bank account.

“The primary mission of the SIU is to recover proceeds from beneficiaries of NLC grant funding who are involved in unlawful activities, thereby restoring the State’s financial losses.”

The SIU first received a preservation order to freeze Sigudla’s Midstream property in July.

According to Kaizer Kganyago, Sigudla’s spokesperson, Sigudla signed the grant agreement in September 2017 and received an additional R7.5 million in 2019.

However, once built, the old-age homes in Thaba Nchu, Free State, were repurposed as a rehab facility, given the raging drug problem in the area.

According to a report by the Sowetan, the building is being used as accommodation for local students paid for by the National Student Financial Aid Scheme (NSFAS).