SIU freezes R2.7 million from divorce settlement

The Special Investigating Unit said it has secured a preservation order from the Special Tribunal to freeze R2.7 million including accrued interest linked to the sale of land received by Tintswalo Patience Chauke as part of her divorce settlement. The order forms part of the SIU investigation into the alleged misuse of National Lotteries Commission grant funding.

Chauke was previously married to Alfred Muzwakhe Sigudla, who received multiple grants from the National Lotteries Commission through organisations under his control. The couple divorced in 2021. The funds frozen by the Special Tribunal are believed to be proceeds from property acquired using money originally intended for community development projects.

The preservation order prevents Chauke from withdrawing or transferring the funds until the SIU finalises a review application aimed at cancelling the grant funding that enabled the purchase of the property. The SIU says the order ensures that funds suspected to have been misappropriated remain secured while legal processes continue.

According to the SIU, in 2018 the SA Youth Movement NPC, chaired by Sigudla, received approximately R23 million from the National Lotteries Commission. The funding was approved for the construction of old-age homes in KwaZulu-Natal and the Free State. However, evidence gathered during the investigation indicates that a portion of the funds was transferred from the organisation to bank accounts linked to Sigudla’s private companies.

The SIU alleges that the diverted funds were used to acquire two luxury properties located at Midstream Estate and Copperleaf Golf Estate. The Midstream Estate property has already been frozen pending the outcome of a review application into the legitimacy of the grant funding, as the SIU seeks to recover misused National Lotteries Commission funds.

The property located at Copperleaf Golf Estate was purchased in 2018 for approximately R800,000 using funds intended for community development. The property was jointly owned by Sigudla and Chauke at the time. Following their divorce, the property was transferred to Chauke as part of the settlement agreement.

Further investigation revealed that the Copperleaf property was later sold and generated proceeds of R2,550,000. These proceeds are currently held in Chauke’s bank account. The SIU maintains that the money is directly linked to grant funding that was allegedly unlawfully redirected from its intended purpose.

The SIU says its primary objective is to recover funds from beneficiaries of National Lotteries Commission grants who are implicated in unlawful activities. The unit aims to restore financial losses suffered by the State and to ensure accountability in the management of public funds.

The investigation into the National Lotteries Commission was authorised by President Cyril Ramaphosa through Proclamation R32 of 2020. The proclamation mandates the SIU to probe allegations of corruption and maladministration within the commission and to pursue civil recovery of losses.

The SIU is empowered under the Special Investigating Units and Special Tribunals Act 74 of 1996 to institute civil proceedings in either the High Court or the Special Tribunal to address any wrongdoing identified during its investigations. Where evidence of criminal conduct is uncovered, the SIU will refer the matter to the National Prosecuting Authority for possible prosecution.

SIU spokesperson Kaizer Kganyago said the preservation order was critical to ensuring that funds suspected to have been unlawfully acquired are not dissipated while investigations continue. He said the SIU remains committed to recovering misappropriated National Lotteries Commission funds and to ensuring accountability and transparency in the use of public resources.