June 12, 2025
The Special Investigating Unit (SIU) has obtained a preservation order from the Special Tribunal to freeze Portion 15 of the Farm Zandrivierspoort, located near Louis Trichardt in Limpopo, South Africa, as part of a high-profile investigation into the misappropriation of funds from the National Lotteries Commission (NLC). This action, announced on June 10, 2025, targets a sophisticated scheme involving the diversion of over R66 million intended for community development projects, such as old age homes, to private entities and individuals. The move underscores the SIU’s ongoing efforts to combat corruption and recover assets linked to fraudulent activities.
Uncovering a Complex Fraud Scheme
The SIU’s investigation revealed a coordinated effort to hijack legitimate non-profit organizations (NPOs) and falsify grant applications to siphon funds from the NLC. Three NPOs—Matieni Community Centre, Lethabong Old Age Home, and War Against Rape and Abuse (WAR RNA)—collectively received more than R66 million under false pretenses. According to the SIU, the original members of these NPOs were unaware of the fraudulent applications, and the individuals listed on the NLC submissions were not legitimate members.
The probe uncovered that funds were diverted to private entities, notably the Mbidzo Development Programme, controlled by Collin Tshisimba, a figure linked to other NLC investigations. Matieni Community Centre received R23 million, of which R5.975 million was transferred to Mbidzo and R6.2 million to Wa Rothe Construction. Lethabong Old Age Home received R20 million, with R15 million funneled to Mbidzo, and WAR RNA received R20 million, with R5 million also directed to Mbidzo. These funds were then channeled through attorneys to purchase Portion 15 of the Zandrivierspoort farm, which is registered under Promise Kharivhe, Tshisimba’s life partner.
“This action is part of an investigation into the misappropriation of funds from the National Lotteries Commission, which were intended for the construction of old age homes,” the SIU stated. The preservation order prohibits Kharivhe and any other parties from selling, leasing, transferring, or otherwise dealing with the property until civil proceedings are finalized.
Broader Context of NLC Investigations
The Zandrivierspoort farm seizure is part of a wider SIU investigation into NLC corruption, authorized by President Cyril Ramaphosa under Proclamation R32 of 2020. Previous actions include freezing luxury properties, plots, and farms linked to NLC officials and their associates. For instance, in January 2023, the SIU and the National Prosecuting Authority’s Asset Forfeiture Unit (AFU) secured orders to freeze properties worth R56.3 million, including a luxury Midrand home linked to Kwaito musician Arthur Mafokate and a farm portion in Rustenburg tied to former NLC board member William Elias Huma.
The SIU’s mandate, under the Special Investigating Units and Special Tribunals Act 74 of 1996, empowers it to pursue civil action in the High Court or Special Tribunal to recover financial losses caused by corruption, fraud, or maladministration. Evidence of criminal conduct uncovered during the investigation has been referred to the National Prosecuting Authority (NPA) for further action.
Implications and Next Steps
The preservation order ensures that the Zandrivierspoort farm remains under the care of a curator pending the outcome of civil proceedings aimed at recovering misappropriated funds. SIU spokesperson Kaizer Kganyago emphasized that the order is part of implementing investigation outcomes and enforcing consequence management to address financial losses suffered by state institutions. “The SIU’s probe into NLC-funded projects uncovered a sophisticated scheme involving the hijacking of legitimate non-profit organizations, falsified grant applications, and the diversion of funds to private entities and individuals,” Kganyago said.
The freezing of the Zandrivierspoort farm has drawn significant attention, with posts on X reflecting public interest in the case. For example, @CapricornFMNews reported on June 11, 2025, that the SIU secured the order as part of its NLC investigation, while @SundayWorldZA highlighted the action as a step toward addressing lottery corruption. These sentiments underscore the public’s demand for accountability in the management of public funds.
Challenges and Broader Implications
The Zandrivierspoort case highlights ongoing challenges in South Africa’s fight against corruption, particularly within state-funded institutions like the NLC. The misuse of funds intended for community development projects, such as old age homes, has raised concerns about governance and oversight. The SIU’s actions align with South Africa’s National Anti-Corruption Strategy, which emphasizes collaboration between law enforcement agencies to eradicate corruption.
However, the case also raises questions about the effectiveness of current mechanisms to prevent fraud in grant funding processes. The SIU’s findings point to systemic vulnerabilities, such as the ease of hijacking NPOs and the lack of verification for grant applications, which allowed funds to be diverted to private entities. Addressing these gaps will be critical to restoring public trust in institutions like the NLC.
Conclusion
The SIU’s preservation order for Portion 15 of the Zandrivierspoort farm marks a significant step in tackling corruption within the NLC. By freezing assets linked to fraudulent activities, the SIU aims to recover misappropriated funds and hold those responsible accountable. As the investigation progresses, the outcome of civil proceedings will determine whether the state can reclaim the financial losses incurred. The case serves as a reminder of the importance of robust oversight and transparency in managing public funds, particularly those intended for vulnerable communities.