SIU Freezes Ex-NLC Official’s Pension Over R6 Million Lottery Scandal

Payout for a sports facility that never existed prompts bold action as part of a wider R1 billion corruption probe.

The Special Investigating Unit (SIU) has secured a court order to freeze the pension of former National Lotteries Commission (NLC) COO Sanele Dlamini, who is at the centre of a R6 million scandal involving a phantom sports facility in Soweto.

Dlamini, who was dismissed in November 2024, is one of several former officials facing scrutiny in an explosive investigation into more than R1 billion in allegedly irregular lottery grant payments.

R6 Million Gone, No Stadium in Sight

At the heart of the case is the Motheo Sports and Entertainment Foundation, which received millions from the NLC to build a sports facility that was never constructed. Despite the hefty grant, no progress was ever made, raising alarm bells about where the money actually went.

The SIU’s court application, granted this month, seeks to block Dlamini from accessing his pension as a means of recovering some of the misspent funds.

“This preservation is intended to ensure that funds remain available for potential recovery,” the SIU said, adding that Dlamini may lack other assets sufficient to cover any future claims.

His retirement fund has now been given 60 days to disclose the full value of his pension, which will be held until the SIU completes its claim process.

SIU Recovery Push: Over R900 Million Still to Go

This is just the tip of the iceberg.

The SIU has already clawed back R9.5 million as of May 2025, but its probe is now moving into phase three, which covers another R900 million in questionable disbursements.

• Phase one focused on R279 million in suspect grants.

• Phase two looked at an additional R246 million.

• Phase three, now underway, is the biggest yet, with deeper investigations into shell organisations, politically linked entities, and manipulated funding approvals.

Lottery Licence Transition Adds Pressure

The investigation comes at a critical moment for the NLC, which is undergoing a major transition in operations.

At the end of May 2025, the NLC awarded its new lottery operating licence to a different service provider, but also gave the outgoing operators a 12-month interim licence to avoid disruptions to the national lottery system.

This transition period is being closely watched, especially as it overlaps with the fallout of the corruption scandal that has tainted public trust in how lottery funds are managed and allocated.

A Case of Accountability or More to Come?

The freezing of Dlamini’s pension marks a rare, tangible move toward accountability in a scandal that has, for years, outraged civil society.

Critics have long accused the NLC of operating with minimal transparency, with lottery funds meant to uplift communities allegedly diverted into the pockets of officials and connected individuals.

The SIU’s legal win now raises hopes that more funds may be recovered, and that this case could set a precedent for dealing with state-linked corruption.

But it also underscores a sobering reality: millions meant for schools, sports fields, and social development projects simply vanished and South Africans are still waiting to see who else will be held responsible.

{Source: The Citizen}

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