The Special Investigating Unit (SIU) has successfully obtained a preservation order from the Special Tribunal, allowing it to freeze R2.7 million, including accrued interest, from the sale of land that Tintswalo Patience Chauke received as part of her divorce settlement. Chauke was previously married to Alfred Muzwakhe Sigudla, a recipient of multiple grants from the National Lotteries Commission (NLC), until their divorce in 2021.
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.
In 2018, the SA Youth Movement NPC, chaired by Sigudla, received approximately R23 million in funding from the NLC for the construction of old-age homes in KwaZulu-Natal and the Free State. However, evidence collected by the SIU reveals that, after receiving these funds, Sigudla transferred a portion to his own companies' bank accounts and subsequently used them to acquire two luxurious properties, namely in Midstream Estate and Copperleaf Golf Estate. Notably, the Midstream property has been frozen pending completion of the review application into the legitimacy of the grant funding to recover misused NLC funds.
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. 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.
Protecting the public interest and assets through prevention measures and systemic investigations to eradicate fraud, maladministration, and corruption.
The primary mission of the SIU is to recover proceeds from beneficiaries of NLC grant funding who are involved in unlawful activities, thereby restoring the State’s financial losses.
Authorised by President Cyril Ramaphosa through Proclamation R32 of 2020, the SIU is dedicated to investigating allegations of corruption and maladministration within the NLC and to recovering financial losses incurred by the State. The order from the Special Tribunal represents an important step in the SIU's ongoing efforts to combat corruption and ensure accountability and transparency in the management of public funds.
The SIU is empowered to initiate civil proceedings in the High Court or a Special Tribunal to address any wrongdoing it identifies, in accordance with the Special Investigating Units and Special Tribunals Act 74 of 1996. Any evidence of criminal conduct uncovered during investigations will be forwarded to the National Prosecuting Authority (NPA) for further legal action.
Enquiries:
Kaizer Kganyago
Spokesperson: Special Investigating Unit
Cell: 082 306 8888
E-mail: KKganyago@siu.org.za
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