How R5.27 became R2.96m: Tribunal exposes 'hijacked' charity at the centre of Lottery grant fraud

A Special Tribunal ruling has uncovered the extraordinary paper trail behind a R2.96 million National Lotteries Commission (NLC) grant awarded to a "hijacked" non-profit organisation, exposing what investigators describe as a sophisticated scheme involving forged documents, questionable approvals and the rapid movement of public funds.

The tribunal declared the grant awarded to Fire Charismatic Chapel International unconstitutional, unlawful and invalid, ordering those who benefited from the misappropriated funds – including former NLC chief operating officer Philemon Letwaba, his associates and individuals linked to the hijacked non-profit – to repay the money to the Special Investigating Unit (SIU) or the National Revenue Fund.

At the heart of the case is a striking timeline.

Fire Charismatic Chapel International applied for funding in March 2017, claiming it would organise a festival promoting local artists. However, the SIU found the festival had in fact been organised by Macronym 37 (Pty) Ltd under a municipal contract, while the grant agreement with the NLC was only signed on 18 April 2017 – after the event had already concluded.

Just two days later, the NLC transferred R2.368 million into the organisation's bank account, which investigators found held a balance of only R5.27 before the payment.

The SIU said the money was then swiftly distributed to multiple entities for services ranging from travel and auditing to performances. Within weeks, only R616.02 remained in the account.

The tribunal also found that Fire Charismatic had effectively been taken over by individuals who were not its legitimate office bearers. According to the SIU, the grant application was submitted using forged signatures, while one listed director, Maria Lebea, was added to the application without her knowledge.

Eighteen months later, the NLC paid a further R592,000 to the organisation. Investigators traced R500,000 from that payment to the trust account of former NLC chief operating officer Philemon Letwaba and R40,000 to his second wife, Rebotile Malomane. Additional payments were made to companies previously linked to the transaction.

The tribunal was also critical of the NLC's due diligence processes, noting that officials failed to properly verify the organisation's legitimacy. A site inspection reportedly found that the address listed by Fire Charismatic was that of a newspaper rather than an operational non-profit organisation.

In another key finding, the tribunal concluded that a R1 million payment to Macronym 37, presented as sponsorship, was not genuine but instead formed part of a fraudulent mechanism to divert grant funding.

The SIU said the judgment forms part of its wider effort to recover millions of rand lost through corruption at the National Lotteries Commission following investigations authorised by President Cyril Ramaphosa under Proclamation R32 of 2020.

The unit added that any evidence of criminal conduct uncovered during the investigation will be referred to the National Prosecuting Authority for consideration of prosecution.