Zuko Komisa
- South Africa’s Special Tribunal has declared a R14m National Lotteries Commission (NLC) grant unlawful, ordering its immediate repayment.
- The court found that the Mukutu brothers “hijacked” a non-profit organisation to secure funding for a cultural village that had already been built years prior.
- Multiple individuals and entities have been held jointly liable for the full amount following a probe into what the judge described as a “catastrophic corruption epidemic.”
The Special Investigating Unit (SIU) has successfully obtained a court order to set aside a fraudulent R14 million grant originally intended for a cultural village in Hammanskraal.
Judge Margaret Victor, President of the Special Tribunal, condemned the scheme as ‘unconscionable,’ ruling that the funds were secured through deliberate misrepresentation and the forgery of signatures.
The investigation revealed that brothers Tshimangadzo and Ndoweni Mukutu orchestrated the fraud by usurping the identity of the Madumelani Community Project.
They applied for funding to construct a facility that had already been established in 2015 by a different organisation.
The authentic members of the non-profit were entirely unaware that their constitution had been used to facilitate the multi-million rand application.
Once the NLC disbursed the funds in 2018, the money was rapidly funnelled through a web of private companies and relatives associated with the brothers.
This included a R3 million payment to a trust linked to a former NLC board member. In a scathing judgment, the court ‘pierced the corporate veil,’ holding the individuals and their associated businesses jointly liable for the total loss plus legal costs.
This ruling is a significant victory for the SIU’s ongoing mandate to recover state assets lost to corruption.
The unit has confirmed that evidence of criminal conduct will be referred to the National Prosecuting Authority to ensure those involved face further legal consequences beyond the repayment of the stolen millions.
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