The Special Investigating Unit (SIU) told Parliament's Portfolio Committee on Trade and Industry that it found R300 million worth of corrupt payments from the National Lotteries Commission (NLC) to non-profit organisations (NPOs) and non-profit companies (NPCs). The SIU could not reveal the names of individuals and organisations implicated, except where the report findings were finalised, and action was taken.

The investigation was launched in 2020. The NLC serves as South Africa's only lotteries and sports pool betting regulator, but also serves as a grant funder for non-government organisations established in causes aimed at improving the lives of South Africans. The unit found that in a series of transactions, millions of rands at a time were funnelled from the NLC - funds which were meant to develop facilities like drug rehabilitation centres, old age homes, and youth empowerment facilities, but instead went towards purchasing cars and luxury homes.

The SIU said NPOs found to have misused funds, including youth organisation Inqaba Yokulinda, had had assets from the NLC's funds seized, and that officials in the NLC would be pursued for legal proceedings once the final SIU report is referred to the National Prosecuting Authority (NPA). SIU head Advocate Andy Mothibi said while the investigation has not been concluded yet, where aspects of the investigation have found a need for litigation to be pursued, these are actioned as and when the need arises. "Only when those actions are public, are we able to mention the names.

In this investigation, where we mention the names, actions have been made public. We have preservation orders from the Special Tribunal and we mention the names of companies and PBOs simply because they are public," said Mothibi. Mothibi said phase one of the report would be submitted formally to President Cyril Ramaphosa in April and that version of the report would include names and companies. He called the report a "web of corrupt networks" and found a modus operandi that hijacked funds through NPOs and legal firms. "We have uncovered that part with stringent investigative methods analysing the flow of funds. We have now gathered evidence and can pursue further outcomes for action.

In one example, Mothibi said R23 million was given to an NPO by the NLC which was meant for an old age home, but that R5 million of this went to a private bank account and ended up buying a luxury property. He said where officials of the NLC were implicated but have resigned, civil proceedings would be initiated as the report is referred to the NPA. "While the resignations terminate their board membership and disciplinary action internally, a civil recovery perspective allows us to take civil action to recover funds from these people whether they have resigned or not," he said.

SIU national chief investigations officer Leonard Lekgetho said a preservation order was granted to the unit for Swartkop property belonging to Tshifhiwa Magogodela, a Honda Jazz, and three Mercedes Benzes belonging to Jabu Sibanda, an Audi A3 belonging to Boitumeo Diutlwikeng. "On the main application, the SIU seeks to set aside the award of the grant to Inqaba Yokulinda by NLC to the amount of R19.2 million. The SIU will also request the court to order Buyisiwe Khoza, the CEO of the NPO, to pay back the R5 million which she used for her personal gain," Lekgetho said.

Lekgatho said the brother of a senior NLC official received funds during the rout. The NLC conducted a disciplinary hearing against officials starting in January 2022 and is ongoing, although misgivings were expressed about the hearing. Committee chair and African National Congress (ANC) MP Judy Hermans said the committee would call Minister of Trade and Industry Ebrahim Patel to brief the committee for an account on how the report will be put into effect once it is submitted to Ramaphosa. Democratic Alliance MP Matt Cuthbert applauded the "sterling work" of the SIU investigation but expressed disappointment that Minister Patel did not attend the portfolio committee meeting.

"This is all whilst the ANC sat and smeared journalists, silenced the opposition, and tried to make sure that we did not uncover the rot," Cuthbert said. DA MP Dean MacPherson said the level of corruption does not happen on its own without being aided and abetted by the ANC and ministers that allowed it to continue without consequences and frustrated opposition attempts at uncovering it. Economic Freedom Fighters MP Yoliswa Yako said the report showed the "shocking ease" with which money that is meant to serve communities could be stolen. She expressed ire at Patel's absence from the committee meeting.