Hijacked church NPO used to obtain R2.96m lottery grant
PRETORIA — A nonprofit organisation with just R5.27 in its bank account received a R2.368 million lottery payment for a festival it had not organised, according to an SIU investigation that secured an order setting aside the full R2.96 million grant.
The Special Tribunal declared the National Lotteries Commission’s grant to Fire Charismatic Chapel International unconstitutional, unlawful and invalid. It ordered the individuals and entities that benefited from the misappropriation to repay money to the Special Investigating Unit or the National Revenue Fund.
The SIU said Fire Charismatic, established in 2008 to promote the Christian faith, had been hijacked. Its funding application was not signed by the legitimate office bearers recorded with the Department of Social Development. Investigators also found that Maria Lebea had been listed as a director without her knowledge and that her signature had been forged.
The application, submitted on 17 March 2017, sought funding for a festival promoting local artists and musicians. However, the SIU found that Macronym 37 had organised the event under a separately awarded municipal contract.
The festival took place from 14 to 16 April 2017. The lottery funding agreement was signed on 18 April, after the event had ended, and the first payment reached Fire Charismatic’s account on 20 April.
Investigators traced the rapid distribution of the money to companies and individuals for purported auditing, travel, performances and ablution facilities. Macronym 37 received R1 million described as sponsorship, which the Tribunal found was a fraudulent transaction intended to divert grant funding. By 12 May 2017, only R616.02 remained in the NPO’s account.
A further R592,000 was paid in October 2018, approximately 18 months after the festival. The SIU said R500,000 subsequently went to a trust linked to former NLC chief operating officer Philemon Letwaba, while R40,000 went to his wife, Rebotile Malomane.
The repayment orders include:
| Individuals or entities | Amount | Macronym 37 and Somandla Sibisi | R1 million | Mukondeleli Collin Tshisimba and Ndavha Management | R678,000 | Matodzi Mashele and Mishsone Trading | R520,000 | Mosokodi Business Trust, Philemon Letwaba and trustee Johannes Kgomotsho Letwaba | R500,000 | Matamela Magodi Consulting and Magodi | R200,000 | Rebotile Malomane | R40,000 | Simba Community Development Foundation | R19,000 |
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Fire Charismatic must repay the remaining approximately R3,000, together with interest. According to the SIU, purported chairperson Lufuno Moses Maise and Lebea would become personally responsible if the organisation failed to pay.
The Tribunal also identified shortcomings in the NLC’s verification of the organisation. A surprise visit revealed that its listed office address belonged to a newspaper.
The ruling was publicly reported in August. On 14 August, the Diamond Fields Advertiser reported that Sibisi intended to appeal the R1 million repayment order against him and Macronym 37. That report does not establish the outcome of any subsequent appeal.
The order provides a legal basis for recovering the funds; it does not establish that every amount has already been repaid. The SIU said evidence of criminal conduct would be referred to the National Prosecuting Authority for consideration of prosecution, a separate process from the Tribunal’s civil recovery proceedings.
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