Specialist Investigating Unit welcomes Special Tribunal judgement affirming preservations of former NLC COO, Phillemon Letwaba’s million pension benefits

The Special Investigating Unit (SIU) welcomes the judgment delivered by the Special Tribunal, which affirms the Tribunal’s authority to preserve pension funds under the Pension Funds Act. The ruling follows after the former Chief Operating Officer of the National Lotteries Commission (NLC), Phillemon Letwaba, attempted to reverse the previous preservation order by submitting that the Special Tribunal has no jurisdiction to rule over the freezing of pension funds.

Judge Margaret Victor, the President of the Special Tribunal, in judgment explained, “To interpret the word ‘court’ narrowly would create an absurdity and undermine the fight against corruption. The Special Tribunal must be read harmoniously with the Pension Funds Act, so that it can exercise its powers to preserve and deduct pension benefits where misconduct, dishonesty, or fraud is proven. This interpretation promotes the spirit and objects of the Bill of Rights and ensures that
justice is not defeated by technicalities.”

The order ensures that the R2.8 million pension benefits due to Letwaba remain frozen, preventing him from benefiting from misconduct while investigations and civil proceedings continue. This judgment reinforces the principle that individuals implicated in corruption cannot shield themselves through pension benefits.

The SIU investigation revealed that Letwaba abused his position to siphon millions of rands intended for community upliftment projects. Instead of reaching vulnerable communities, these funds were diverted into companies and trusts owned or controlled by his wife, brother-in-law, and close associates, including Upbrand Properties, Mosokodi Water Solutions and Drilling, Mosokodi Farming Project, Mosokodi Trust, and the Letwaba Family Trust.

The SIU’s probe shows that the money was used to enrich his family and associates through property acquisitions, luxury lifestyles, and business ventures. In one case, a Limpopo-based NPO received approximately R25 million for the refurbishment of a torched school in Vuwani. Twelve days later, R4 million was transferred to Upbrand Properties without evidence of work being done, in violation of the funding agreement.

In line with the Special Investigating Units and Special Tribunals Act 74 of 1996 (SIU Act), the SIU will refer any evidence of criminal conduct uncovered during its investigation to the National Prosecuting Authority (NPA) for further action.

The SIU is also authorised to initiate civil proceedings in the High Court or a Special Tribunal in its name to correct any wrongdoing uncovered during its investigation and to recover financial losses suffered by the State, including funds paid for services not rendered.

Enquiries:
Kaizer Kganyago
Spokesperson: Special Investigating Unit 
Cell: 082 306 8888
E-mail: KKganyago@siu.org.za

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