SIU freezes R2.7 million linked to misappropriated Lottery funds

The Special Investigating Unit (SIU) has successfully secured a preservation order from the Special Tribunal to freeze R2.7 million derived from the sale of land linked to irregular National Lottery Commission (NLC) funding.

THE MISUSE OF COMMUNITY FUNDS
The investigation dates back to 2018, when the SA Youth Movement NPC, chaired by Alfred Sigudla, received approximately R23 million from the NLC. The funds were strictly earmarked for the construction of old-age homes in KwaZulu-Natal and the Free State.

However, the SIU alleges that Sigudla diverted a portion of these funds into his private company bank accounts. These misappropriated funds were then used to purchase two luxury properties in Johannesburg.

DIVORCE SETTLEMENT AND PROPERTY SALES
One of the properties involved was located in the Copperleaf Golf Estate. It was purchased for roughly R800,000 in 2018 and co-owned by Sigudla and his then-wife, Tintswalo Chauke. Following their 2021 divorce settlement, the property was transferred to Chauke.

SIU SpokespersonKaizer Kganyago confirmed that the unit tracked the proceeds after the property was recently sold.

“The property in Copperleaf Golf Estate, purchased for approximately R800,000 using funds earmarked for community development, was co-owned by Sigudla and Chauke in 2018 and was subsequently transferred to Chauke as part of their divorce settlement,” Kganyago stated. “Further investigations have revealed that the proceeds from the sale of this property, amounting to R2,550,000, currently reside in Chauke’s bank account.”

LEGAL ACTION AND RECOVERY
The preservation order ensures the funds remain untouched while the SIU pursues a formal review application to cancel the original grant funding.

“This order prohibits Chauke from withdrawing or transferring the funds until the SIU completes a review application to cancel the grant funding that enabled the purchase of the land, thereby ensuring that the potentially misappropriated funds are secured,” said Kganyago.

The SIU has reiterated its commitment to recovering all proceeds from lottery grant beneficiaries involved in unlawful activities.