The state's ongoing investigation into hundreds of millions of rands stolen from the National Lotteries Commission (NLC) has led to the seizure of a prime waterfront property outside Pretoria, allegedly bought with funds meant for intellectually impaired athletes, reports Fin24.

The Special Investigating Unit (SIU) says the Sable Hills estate on Roodeplaat Dam, was bought with funds destined for some of SA’s most vulnerable athletes. 

It is one of four properties and a Toyota Hilux bakkie worth a combined R6.5m, which the Gauteng High Court (Pretoria) has preserved in a joint application brought by the SIU and the Asset Forfeiture Unit.

The latest court action has again implicated the NLC's former COO.

Phillemon Letwaba has long been linked to fraud at the lottery, which he has denied. He abruptly resigned from his post in August 2022, ahead of a planned disciplinary hearing into allegations that he diverted funds to companies linked to him and his family.

A few months later, his multimillion-rand pension payment was frozen.

This April, meanwhile, the SIU rushed to block the sale of a farm in Limpopo it says was linked to him and his brother, Johannes, before it could be sold off.

According to the SIU, the lottery paid R30m to the SA Sports Association for the Intellectually Impaired. The funds were paid out in two tranches of R15m in 2015 and 2016.

The association promised to use the funds to host a sports event in Bloemfontein for intellectually impaired athletes.

But shortly after the second R15m tranche was paid over in late January 2016, the association, according to Fin24, allegedly transferred R3.9m to Ironbridge Travelling Agency and Events, a company directly linked to Letwaba's family members.

His cousin, Karabo Sithole, has served as a director, as has his wife, Rebotile Malomane. Ironbridge then transferred R2m to a company called Ndzhuku Trading. It used R350 000 to purchase an erf for R750 000 in cash in the waterfront estate, said the SIU.

The property was registered in the name of the Malwandla Siweya Family Trust. The trust has Malwandla Solly Siweya – whose name has repeatedly come up in investigations linked to the NLC – as its trustee.  He is also the owner of Ndzhuku Trading.

‘The preservation order ensures that the identified assets remain secured and cannot be sold or otherwise disposed of while investigations continue,’ said the SIU.

‘The SIU and AFU are working closely to expedite the legal process to recover the misappropriated funds and bring those involved in these fraudulent activities to justice.’

Investigators said that, in addition to Sable Hills, the court also froze two other properties in Gauteng and one in Louis Trichardt, Limpopo. The court also froze a 2016 Toyota Hilux. Eight years ago, the bakkie would have cost in the region of R450 000.

Full Fin24 report

See also full report in The Star