Parliament on Tuesday heard how legal challenges were delaying the Special Investigating Unit probe and prosecutions in the looting of the National Lotteries Commission.
Image: File
Former National Lotteries Commission (NLC) chairperson Prof. Alfred Nevhutanda’s legal challenge to President Cyril Ramaphosa’s proclamation of the Special Investigating Unit (SIU) probe into billions siphoned from the entity is delaying investigations and prosecutions.
The National Assembly’s portfolio committee on trade, industry and competition on Tuesday heard that pleadings in the matter have closed and is now waiting for the court to set it down.
Mashudu Netshikweta, the SIU senior manager responsible for the NLC investigation, said the unit obtained a preservation order from the Special Tribunal freezing Nevhutanda’s assets including immovable property.
Netshikweta said investigations had revealed that these were bought using the commission’s funds.
Nevhutanda then instituted review proceedings in the Gauteng High Court, Pretoria challenging Ramaphosa’s decision to authorise the investigation into the affairs of the NLC.
He wants the proclamation to be reviewed and set aside as neither the affairs of the NLC nor those of the National Lottery Distribution Trust Fund or those of the distributing agencies falls within the ambit of the SIU Act.
In addition, Nevhutanda is seeking a declaratory order that the SIU and or National Director of Public Prosecutions may not utilise any of the evidence and documents procured during the investigation conducted in pursuance of the relevant proclamation.
He also wants all documents and evidence procured during the SIU investigation under relevant proclamation be returned to the rightful owners.
According to the SIU, it is opposing the application on the basis that the NLC is an organ of state.
“The NLC is a schedule 3A public entity that was established in terms of the Lotteries Act No.57 of 1997 to regulate the National Lottery, sports pools and society lotteries and to raise funds for worthy causes.
"The NLC is governed by a board appointed by the executive authority. The executive authority of the NLC is the Minister in the Department of Trade, Industry and Competition,” said Netshikweta.
The SIU is investigating contracts valued at more than R2 billion but has only recovered R9.5 million. Additionally, the National Prosecuting Authority’s (NPA’s) asset forfeiture unit (AFU) has obtained preservation orders valued at just over R78.2m.
Over R626.5m in preservation order review applications are before the Special Tribunal while referrals to the NPA for possible prosecution stand at 19, nine to professional bodies for lawyers, chartered accountants and auditors, among others.
The AFU’s Advocate Marinus Steyn said the presiding judge in the Nevhutanda forfeiture application, and he was granted a postponement sine die (indefinitely) pending the outcome of the matter he brought against Ramaphosa.
“The AFU can therefore not proceed with forfeiture applications in the first three legs of the case. In the fourth leg, the presiding judge allowed the respondent to file an additional affidavit. The AFU is proceeding to re-enrol the forfeiture application again,” he said.
Steyn said the AFU has obtained four preservations in the NLC cases.
In the first preservation order, there have been four interlocutory applications from different respondents.
He said three applications were brought for the exclusion of property from the operation of the preservation order and one citing procedural irregularities but all were successfully opposed.
“In the second preservation, there have been two interlocutory applications. One application was filed to compel the AFU to submit information irrelevant to the application. The application was opposed.
"The respondent must file a replying affidavit or enroll the matter. An application for reconsideration of the preservation order was successfully opposed. All the applications being brought are taking up a huge amount of time,” Steyn stated.
loyiso.sidimba@inl.co.za