The Special Tribunal has ordered the Mshandukani Foundation and several individuals to repay a R4-million National Lotteries Commission grant awarded in 2019 for installing boreholes at Eastern Cape schools and clinics.

Investigations by the Special Investigating Unit revealed that the boreholes had already been drilled in 2016 by Mshandukani Holdings, a company owned by Mashudu Shandukani and his wife Pretty Shandukani, the foundation’s chairperson.No new boreholes were installed using the lottery funds.Most of the money was diverted to private companies and personal accounts linked to foundation members.Preldon Construction received R3.

6-million, of which R500,000 went to Iron Bridge, a company owned by Rebotile Malomane, wife of former NLC chief operating officer Phillemon Letwaba, who signed the grant agreement.The foundation’s bank account held only R6,000 before the funds arrived on 20 March 2019, after which money rapidly flowed out.

Judge Brian Mashile ruled that the NLC’s decision to award the grant was invalid, the grant agreement void, and the foundation’s corporate veil pierced because it owned no assets.

The foundation, Pretty Shandukani, Takalani Israel Mulandana, Thambatshira Maria Khameli and Preldon Construction must repay the R4-million jointly and severally, plus interest at 10.75 percent a year.This case follows an earlier tribunal finding against the same foundation over a R25-million Olympic Games send-off that never took place.

The rapid approval process, taking only 11 days from the Pro-Active Funding Quality Assurance Committee’s decision to payment, highlighted systemic problems in the NLC’s funding practices under previous leadership.