SIU property freeze: R13 million state funds used for private property
R13 million in alleged diverted NLC funds triggered an SIU property freeze, fuelling concerns over public money flowing into private assets.
Black News 
The Special Investigating Unit has frozen assets linked to a R13 million National Lotteries Commission grant, including two Gauteng properties. The SIU property freeze follows allegations that officials approved the funds under unusual circumstances and diverted them from the intended agricultural project.
SIU property freeze targets properties connected to R13 million grant
Preservation orders often link NLC grant funding to alleged public fund misuse.
SA News reports that a Special Tribunal order froze assets tied to an NLC-funded initiative. Authorities allocated the funds to Malusi We Sizwe NPC to benefit 1 900 people through a farming project in KwaZulu-Natal.
The company applied for almost R15 million but received R7 million in December 2018 and R6 million in March 2019. Former NLC Grant manager Marubini Ramatekisa requested “proactive funding,” which former chief operating officer Philemon Letwaba approved the same day.
At payment, Malusi We Sizwe had R100 in its bank account. The funds moved through multiple accounts linked to property purchases.
The assets include a property in The Orchards, Hartbeeshoek, and another in Soshanguve, Pretoria. Investigators also traced R5.6 million in transfers to Trizaflo (Pty) Ltd, owned by Wisane Mabundza.
Concerns focus on the rapid redirection of funds into private asset purchases linked to the SIU property freeze investigation.
State asset recovery reveals pattern of diverted public funds
Earlier in May, the SIU said businesswoman Yolanda Mgobo received over R18 million unlawfully from the UIF’s Temporary Employer/Employee Relief Scheme. According to SA News, her company allegedly received the funds through intermediary companies.
The scheme allegedly used ghost employees to access relief funds. Authorities placed a preservation order on four properties valued at around R2.7 million and three vehicles.
A separate 2026 UIF TERS matter also involves ghost employees and diverted payments.
In April, the SIU secured a freeze order on Nhlakanipho Mngomezulu’s assets. Investigators accuse him of receiving TERS funds through his company, Lubelo Hlomuka Holdings trading as SA Scrum Assembly.
They found that his company received more than R16 million from the UIF. The freeze order covers seven properties and four vehicles, reinforcing the broader state asset recovery pattern.
Irregular approvals and weak controls enabling fund diversion
Public funds move through rapid applications, quick approvals, and fraudulent schemes. Once approved, they flow into intermediary accounts before being used for property and asset purchases.
The National Prosecuting Authority pursues these matters and says forfeiture ensures individuals do not benefit from unlawful activities.
Regional spokesperson Monica Manyuswa added, “The NPA continues to strengthen accountability, uphold the rule of law, and demonstrate that crime carries serious financial and legal consequences.”
Allegations of public fund diversion emerge across multiple state-linked programmes beyond a single institution or sector. The greater challenge lies in strengthening safeguards at the allocation stage, before funds are diverted into private use.
