SIU freezes two Pretoria homes after R13m NLC grant for KZN farmers diverted

What the SIU found

According to SIU spokesperson Selby Makgotho, the grant was approved in November 2018 for an agricultural project in the Zululand District Municipality that was meant to benefit around 1 900 people, including unemployed youth and elderly residents. The SIU investigation uncovered what it described as suspicious financial flows and property purchases that appeared unrelated to the intended farming initiative.

How the funding moved

The SIU says the funding process began with a proposal submitted on 14 September 2018 by former NLC Grant Manager Marubini Ramatsekisa and approved the same day by former NLC Chief Operating Officer Philemon Letwaba. On 3 October 2018, Malusi We Sizwe NPC applied for nearly R15 million, and the NLC approved R13 million on 1 November 2018.

The SIU’s account records show the first tranche of R7 million was paid into the NPC’s account on 5 December 2018, with a second payment of R6 million in March 2019. Before receiving the funds, the organisation reportedly had only R100 in its bank account.

Change in leadership and property purchases

The SIU says Nelisiwe Mahlangu was appointed as a director of Malusi We Sizwe NPC on 26 November 2018, shortly after the grant agreement was signed, while the previously listed directors resigned the same day. Investigators flagged transfers from the NPC to various entities and transactions linked to immovable properties.

• In April 2019, Mahlangu is alleged to have purchased a Soshanguve property for R345 000.
• Between March and November 2019, R5.6 million was reportedly transferred from Malusi We Sizwe NPC to Trizaflo (Pty) Ltd, a company owned by Wisane Mabundza. Trizaflo then transferred more than R2.1 million to attorneys for the purchase of a Midstream Estate property registered in the name of Alfred Sigudhla in December 2019. That Midstream property had already been placed under preservation in April 2025.
• Another property in The Orchards, Hartbeeshoek was transferred into Mahlangu’s name in October 2020.

Legal action and next steps

The preservation orders, issued by the Special Tribunal, prevent the sale or disposal of the Soshanguve and The Orchards properties while civil proceedings to recover the allegedly misappropriated public funds continue. The SIU said the matter forms part of a wider probe into corruption and maladministration connected to NLC-funded projects under Proclamation 32 of 2020, signed by President Cyril Ramaphosa.

SIU statement and possible criminal referral

Selby Makgotho said the SIU remains focused on recovering public funds and ensuring accountability for those involved in abuses of public resources. The SIU added that any evidence of criminal conduct uncovered during the investigation would be referred to the National Prosecuting Authority for possible prosecution.

What this means for Gauteng

While the grant was intended for KwaZulu-Natal beneficiaries, the SIU’s preservation orders affect properties in Pretoria. The actions show how provincial boundaries can be crossed when public funds are allegedly diverted an issue that resonates with local stakeholders and farmers in Gauteng and Joburg who follow accountability in public grant spending.

Background references: SIU investigation findings, NLC grant approval dates, transaction amounts and property transfers as reported by the SIU.