South Africa has taken another step in tightening oversight of National Lottery funding after the Special Tribunal ordered the repayment of R6 million (US$359,500) linked to an unlawful grant issued by the National Lotteries Commission (NLC).
The ruling follows an investigation by the Special Investigating Unit (SIU), which uncovered irregularities in a R9 million (US$539,200) grant awarded to the Motheo Sports and Entertainment Foundation for the construction of the Protea Glen Sports Complex in Soweto.
According to the tribunal’s findings, the grant approval process failed to comply with the National Lotteries Act, with no evidence of the required independent research or stakeholder consultation. As a result, the funding decision and grant agreement were declared unlawful.
Judge Andre Petersen ordered multiple respondents to repay R6 million jointly and severally after determining that two tranches of R3 million had already been disbursed before further payments were halted.
Investigations revealed that the funds were diverted away from the intended project. Instead of being used for construction, significant portions were transferred to entities and individuals linked to those controlling the foundation, including payments to companies such as PSKO, Londilox and Synercon, as well as transfers to a personal bank account.
The tribunal also found serious lapses in oversight. Former NLC officials involved in approving the disbursements were criticised for failing to verify project progress, with evidence showing that the site remained undeveloped despite claims of ongoing construction work.
The ruling marks another milestone in South Africa’s broader efforts to recover misallocated lottery funds and strengthen accountability within the grant funding system. It follows a separate tribunal decision ordering the repayment of R4 million (US$223,000) linked to another unlawful grant.
Authorities say the actions form part of a wider anti-corruption drive aimed at ensuring National Lottery funding is used for legitimate public benefit projects, while reinforcing governance, transparency and compliance across the sector.
