The Special Investigating Unit (SIU) has obtained a Special Tribunal order declaring a R14 million grant from the National Lotteries Commission (NLC) to the Madumelani Community Project fraudulent and unlawful. The grant, awarded in February 2018, was meant for the construction of a cultural village.
Retired Judge Margaret Victor issued the ruling in February, which was released by the SIU on Tuesday. She declared that brothers Tshimangadzo and Ndoweni Mukutu, who is an employee of the Electoral Commission of South Africa, acted in concert and with the intention to defraud the NLC.
NLC Grant Declared Void
The grant has been declared void ab initio, meaning it is considered to have never existed. The Mukutu brothers were the principal participants in the grant funding and are both directors of Madumelani Community Project, according to the Tribunal.
Judge Victor also declared that Mudonde Events and Investment, Rum Management Consultancy, Ndhava Management, and Thwala Front are deemed not to be juristic persons in respect of any right, obligation, or liability of these companies to the NLC. The directors of these companies have been held personally liable for the repayment of the R14m.
Directors Held Liable
In addition, Judge Victor said there was a clear case in which the directors of Mudonde and Rum Management Consultancy knew of the fraud and used the companies as tools to perpetuate it; therefore, the directors must be held liable. The ruling stated that the scheme established by the two brothers, Mukutu, is clearly fraudulent.
The following individuals and companies have been implicated in the fraudulent activities:
- Tshimangadzo Mukutu
- Ndoweni Mukutu
- Tshilidzi David Netswinganani
- Mudonde Events and Investment
- Rum Management Consultancy
- Ndhava Management
- Tshisimba Collin Mukondoleli
- Thwala Front
The SIU has welcomed the ruling, saying it is a significant step in the fight against corruption and the misuse of public funds. The Department of Justice and Constitutional Development has also been approached for comment.
