Lottery money funded the board chair’s luxury private estate

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Lottery money funded the board chair’s luxury private estate
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One of Alfred Nevhutanda’s companies received millions for his mansion from Lottery grants.

Non-profit organisations that received Lottery grants contributed millions of rands, directly and indirectly, to help pay for a lavish R27 million mansion for former National Lotteries Commission board chairperson Alfred Nevhutanda.

A months-long GroundUp investigation has uncovered evidence that R27-million was paid over a six-month period, between September 2017 and March 2018, directly to Couzyn Hertzog & Horak Attorneys, a law firm acting for the seller of the property. This money was held in trust by the attorneys until the property was transferred to Vhutanda.

He appears not to have reported any potential conflicts of interest relating to the payments in the 2017-18 financial year when the payments for the house were made to the lawyers. “This spectacular property needs to be experienced first hand to truly appreciate its timeless charm and prestigious beauty,” Savills said in its advert. “Almost every room leads out to its own balcony enabling you to relax and enjoy the luscious gardens and serene environment with breathtaking views.”

The house also has an “executive lounge on the second level that is equipped with a sushi counter, bar and kitchenette and can accommodate up to 130 guests”. He did not mention Nevhutanda by name. Instead he referred to him as “board member number 2”. He explained how money from non-profit companies that had received lottery grants were paid to the attorneys handling the purchase of the property but did not identify the companies involved.

They include several payments totalling R9.2-million from Mishone Trading 11, a close corporation, headed up by Matodzi Mashele. The SIU presentation said that a non-profit organisation that received R20-million from the NLC sent R11.7-million to Mishone, which subsequently paid R9.2-million to Couzyn Hertzog & Horak Attorneys’ trust account for Nevhutanda’s home.

Couzyn Hertzog & Horak Attorneys, the previous owner’s attorneys, also received in trust R4-million for Nevhutanda’s home from Mushumo Ushava Zwanda, a hijacked non-profit organisation which received R27.4 million to build an old age home in rural Limpopo. No additional construction work appears to have been done with the additional funding, Limpopo Mirror and GroundUp found on visits to the site.

Then there is R1-million from Zibsilor, a non-profit company that received over R29.5-million to build a drug rehabilitation centre in Soshanguve, near Pretoria. Construction of the centre has ground to a halt and the site appears to have been abandoned. Several payments totalling R2.35-million came from Redtaq, a company associated with NLC chief operating officer Letwaba. Letwaba’s brother, Thabo, his first cousin Karabo Sithole, and Keneilwe Maboa, the wife of another of Letwaba’s cousins, were all previously directors of Redtaq. Sithole, who was the director of Redtaq at the time of the payments, did not respond to questions sent to him via WhatsApp.

Responding to questions sent via WhatsApp, Nemaungani denied that Nevhutanda was aware that her company had applied for and had been awarded a grant by the NLC. This “scandal-ridden history” included a R1-million NLC grant in 2011 to COSATU for its birthday bash and a R40-million grant to help pay for the National Youth Development Agency’s 2010 World Festival of Youth and Students. The festival received over R100-million in funding, including grants from the Presidency and from four premiers’ offices. Opposition leaders described the festival as a waste of money.

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