Special Tribunal Orders SASCOC to Repay R24.98m Diverted NLC Grant Funding

Posted 26 June 2026 Written by Acts Online
Category Legal & Compliance

Brought to you by SAnews: The Special Tribunal has issued an order requiring the South African Sports Confederation and Olympic Committee (SASCOC) and several associated entities to repay R24.98 million in unlawfully diverted grant funding originally allocated by the National Lotteries Commission (NLC).

In terms of the Special Investigating Units and Special Tribunals Act, No. 74 of 1996, the Special Investigating Unit (SIU) investigated the allocation of a R34.83 million grant applied for by SASCOC on 7 July 2016. The grant was intended to fund the 2016 Rio Olympics roadshow campaign, with the Mshandukani Foundation acting as the beneficiary.

The Special Tribunal found that SASCOC acted as a conduit for the Mshandukani Foundation, which was registered as a non-profit organisation (NPO) on 16 February 2016. The foundation did not qualify for NLC funding under the regulatory framework as it was newly established and lacked the mandatory annual financial statements. Furthermore, the investigation revealed that the foundation was fraudulently registered using forged signatures and the stolen identities of two employees of Mshandukani Holdings (Pty) Ltd.

Upon receiving the grant, SASCOC transferred R24.83 million to the Mshandukani Foundation in three tranches, retaining R150,000 for “services rendered”. The foundation subsequently diverted the funds to several third parties, including:

  • R15.35 million to Ironbridge Travel Agency (unrelated to the grant’s objectives and linked to the then NLC Chief Operations Officer);
  • R7.23 million to Mshandukani Holdings (Pty) Ltd;
  • R2 million to Ndzhuku Trading; and
  • R240,000 to various other entities under the reference “SASCOC Events” (including Benza Consulting, Imbizo Events, Koleka Music Productions, and Minenhle Dlamini).

The Special Tribunal ruled that SASCOC was complicit in the scheme to siphon public funds and facilitated the unlawful diversion. Except for the two individuals whose identities were stolen, all respondents have been ordered to repay the diverted funds. Settlement agreements have already been concluded with some beneficiaries, and the SIU will refer evidence of criminal conduct to the National Prosecuting Authority (NPA).

What this means for you, your business, or your clients

  • For yourself: No direct individual obligations arise unless you act as a director, trustee, or public officer of an entity facilitating conduit funding or signing off on non-compliant grant applications.
  • For your business: Corporate entities and NPOs must ensure strict compliance with the Non-profit Organisations Act, No. 71 of 1997, and NLC funding guidelines, specifically verifying that conduit funding arrangements are legally permissible and that all beneficiary financial statements are fully audited and valid.
  • For your clients: Clients operating in the non-profit or public funding space must implement robust due diligence and identity verification protocols to prevent fraudulent registrations, unauthorized conduit transactions, and subsequent clawbacks under the Special Investigating Units and Special Tribunals Act, No. 74 of 1996.

Originally published at https://www.sanews.gov.za/south-africa/siu-claws-back-nearly-r25-million-diverted-nlc-grant-funding

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