Former athletics South Africa’s acting CEO paid back ill-gained NLC funds to the SIU
The Special Investigating Unit (SIU) has received full payment from Terrence Magogodela, the former acting CEO of Athletics South Africa (ASA), for the funds he unduly gained from the National Lotteries Commission (NLC) grant funding for a sports facility development.
Mr. Magogodela entered into a settlement agreement with the SIU in June 2023. In terms of the agreement, Mr Magogodela was to pay back R388 733.05. The amount is inclusive of interests, SIU legal costs, curator costs and the amount that he was unduly enriched of, following the grant funding by NLC to a Non-Profit Organisation, Inqaba Yokulinda.
Settlement agreements are part of the SIU’s strategy to recover funds lost by the State. Initially, a settlement agreement was reached but Mr. Magogodela failed to honour it. This prompted the SIU to approach the Special Tribunal for an application to preserve his Gauteng home. In February 2022, the Special Tribunal granted the SIU a preservation order for Magogodela’s property.
Following the full payment made by Mr Magogodela, the SIU will approach the Special Tribunal for an application to discharge his property from the preservation order. However, the settlement agreement does not constitute a full and final settlement between the parties. SIU remains entitled to join Mr Magogodela in any future proceeding and claim appropriate relief from him.
The SIU’s investigations into the NLC found that Magogodela signed the NLC application form for funding to construct athletics tracks in the Northern Cape. On the form, he indicated that he was the project Coordinator for Inqaba Yokulinda, but he was neither the project coordinator nor a member of Inqaba Yokulinda.
The funding application, the business and implementation plan, and an endorsement letter from ASA were submitted to the NLC. Mr Magogodela channelled the NLC funds towards a property in Gauteng. The settlement with Mr Magogodela is part of the implementation of the SIU investigation outcomes and consequence management to recover financial losses suffered by State institutions due to negligence or corruption.
The settlement agreement does not absolve Mr. Magogodela from possible prosecution. The SIU was authorised by President Cyril Ramaphosa in terms of Proclamation R32 of 2020 to investigate allegations of corruption and maladministration in the affairs of NLC and the conduct of NLC officials and to recover any financial losses suffered by the State.
The SIU is empowered by the Special Investigating Units and Special Tribunals Act 74 of 1996 to institute a civil action in the Special Tribunal or the High Court to correct any wrongdoing it uncovers in its investigation. The SIU refers the evidence pointing to criminal conduct to the National Prosecuting Authority for further action. END.
Enquiries:
Kaizer Kganyago
Spokesperson Special Investigating Unit
Cell: 082 306 8888
E-mail: KKganyago@siu.org.za
