From Old-Age Homes to Gated Estates: SIU Freezes Divorce Assets in NLC Fraud Probe

When public money meant to care for the elderly ends up buying property in some of Gauteng’s most exclusive estates, it strikes a nerve and this week, the Special Investigating Unit (SIU) moved swiftly to stop more funds from slipping away.

A Divorce Settlement Under the Spotlight

The SIU has frozen part of a divorce settlement involving Tintswalo Chauke, the former wife of Alfred Sigudla, a man linked to alleged fraud at the National Lotteries Commission (NLC). The couple divorced in 2021, but years later, their financial separation has become entangled in a far bigger national investigation.

On Wednesday, the SIU secured a preservation order on money traced to a property Chauke received as part of the divorce settlement. Investigators say the asset trail leads back to funds that were never meant to benefit private individuals.

Money Meant for Old-Age Homes

At the centre of the case is R23 million in NLC funding awarded in 2018 to a non-profit company chaired by Sigudla. The funds were intended to build homes for the elderly in KwaZulu-Natal and the Free State, a critical need in communities where social services are already stretched thin.

Instead, the SIU established that a portion of the money was redirected into Sigudla’s business account and used to buy two properties. One, in Midstream Estate, was frozen earlier this year. The second, located in the upmarket Copperleaf Golf Estate, is now also under lock and key.

According to SIU spokesperson Kaizer Kganyago, the Copperleaf property was bought for about R800,000 using misappropriated funds. Although it was later transferred to Chauke as part of the divorce settlement, investigators found that the proceeds from its sale, roughly R2.55 million are sitting in her bank account.

Why This Case Matters

Legally, divorce settlements often complicate asset recovery, especially when one party claims no involvement in wrongdoing. But the SIU has made it clear: if the money is tainted, its current location doesn’t protect it.

For many South Africans, the case has reignited anger around the repeated abuse of NLC funding, money raised from ticket buyers who believe they are contributing to community upliftment. On social media, frustration has been palpable, with users asking how projects for the elderly could be sidelined while luxury estates flourished.

Part of a Bigger December Crackdown

This is the SIU’s sixth major action in December alone, signalling an aggressive end-of-year push against corruption. Recent operations include raids linked to a R161 million UIF Covid-19 fraud syndicate, preservation orders tied to an Eskom tender in Polokwane, and recoveries from vehicle licensing scams across provincial departments.

A Broader Reckoning

Beyond the headlines, this case speaks to a deeper reckoning around accountability and the long shadow of corruption. Even years after funds are misused and relationships dissolved, investigators are showing that public money can still be traced, frozen, and clawed back.

For communities still waiting on old-age homes that never materialised, the hope is that justice, even delayed, might finally deliver some measure of accountability.

{Source: The Citizen}

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