The Special Tribunal has set aside as unlawful the R14 million grant awarded by the National Lotteries Commission (NLC) to the Madumelani Community Project, ordering that the money be repaid.
The ruling follows a Special Investigating Unit (SIU) probe that uncovered a fraudulent scheme by brothers Tshimangadzo and Ndoweni Mukutu, who misrepresented themselves to secure funding for a cultural village that already existed.
Judge Margaret Victor described the scheme as “clearly fraudulent”, noting that funds meant for community development were diverted through falsified documents, forged signatures, and unauthorised use of the project’s constitution.
Investigations revealed the brothers “hijacked” the organisation, opened a bank account, and channelled millions to linked entities and associates. The SIU also implicated Dzata Accountants for preparing false financial statements.
The SIU welcomed the ruling, saying it forms part of efforts to recover state funds lost to corruption, with criminal matters referred to the National Prosecuting Authority.
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