Special Tribunal Halts Property Deal Amid NLC Fraud Scandal

The Special Investigating Unit (SIU) has obtained a freezing order from the Special Tribunal, blocking any sale or transfer of an agricultural property in Centurion, Gauteng. The order was granted following findings that the land was acquired using money misappropriated from grants originally intended for community upliftment through the National Lotteries Commission (NLC).

The land in question is registered under Black Tshisimba (Pty) Ltd, a company owned by Collin Tshisimba, who has been a key figure in multiple allegations of financial misconduct linked to the NLC. The SIU’s ongoing investigation revealed a pattern of diversion and abuse of public grant funding intended for rural development initiatives, including sports development.

NLC Grants Diverted Through Web of Entities

Central to the case is the Make Me Movement, a non-profit organisation (NPO) that was allocated around R17.5 million by the NLC. The funds were earmarked for cycling development programs aimed at benefiting rural communities. However, according to SIU spokesperson Kaizer Kganyago, the investigation uncovered that significant portions of these funds were funneled to entities connected to Tshisimba and his close associates.

Among the most damning findings:

• R3 million was paid to Thwala Front CC, a business owned by Fhulufhelo Kharivhe, who is reportedly Tshisimba’s life partner. This transfer occurred just days after Make Me Movement received funds from the NLC.

• R1 million was transferred directly to Black Tshisimba (Pty) Ltd, which was later used to acquire the now-frozen property.

• Over R8 million out of an initial R14 million grant was routed to entities controlled by the suspects—companies that had no official connection with the beneficiary NPO.

• The second tranche of grant funding—amounting to R3,558,400.00—was deposited into an account that previously had just R1,371.35. Within a few months (from January to April 2019), R2.5 million was allocated in staggered payments for property purchases. These included a further R2.5 million to Thwala Front CC and another R1 million, raising serious red flags.

Civil Action and Recovery of State Funds

The Special Tribunal’s freezing order is a critical step in the SIU’s mandate to recover state funds lost through corruption and maladministration. This legal mechanism ensures the property cannot be sold or otherwise disposed of while the civil proceedings are underway.

The investigation is part of a broader probe into widespread irregularities in the disbursement of NLC grants, which have increasingly come under scrutiny for being misdirected away from genuine community development causes. Kganyago emphasized that the SIU will continue to pursue both civil recovery and refer any criminal evidence to the National Prosecuting Authority (NPA).

Legal Framework and Enforcement Mandate

The SIU operates under the Special Investigating Units and Special Tribunals Act 74 of 1996, which allows it to:

• Investigate serious malfeasance in state institutions,

• Institute civil proceedings in the High Court or Special Tribunal, and

• Refer matters for criminal prosecution when applicable.

“The freezing order is not just a protective measure but an instrument of accountability,” Kganyago stated. “It aligns with our constitutional obligation to recover losses and protect public resources from being plundered.”

This case is emblematic of the growing attention on the NLC’s grant processes, which have seen several other projects investigated or halted due to similar allegations. The SIU’s findings underscore the importance of strengthening oversight mechanisms, particularly in grant administration for socio-economic development projects.