Special Investigating Unit obtains interim interdict against former NLC board member

The Special Investigating Unit (SIU) has successfully obtained an interim interdict from the Special Tribunal to preserve R10 million in proceeds from the sale of a Waterkloof, Pretoria, mansion, which is linked to an ongoing investigation into alleged corruption and maladministration involving the National Lotteries Commission (NLC).

The property in question is owned by the BDH Family Trust, of which Advocate William Elias Huma is a trustee. Adv. Huma is also a former NLC board member. The interim interdict restrains the conveyancing attorneys from making any payments pending the finalisation of the main application, which is set to be heard on 7 March 2025. The SIU found that NLC funds were used to purchase this property.

The SIU was alerted to the possible transfer of funds to Adv. Huma by a member of the public, leading to a successful interdict.

The SIU’s urgent application was granted to prevent the dissipation of the proceeds from the Pretoria Immovable Property. Given the history of mismanagement and a lack of cooperation from Adv. Huma, the SIU argued that the funds are at risk of misappropriation.

The interim order follows the SIU’s investigation, which uncovered a complex scheme involving Adv. Huma, a former NLC board member, and several entities linked to him, including Samaritan Initiative NPO, Reagile NPC, Silverlite Trading (Pty) Ltd, and the BDH Family Trust.

The SIU found that BDH Trust’s bond account is being used as a transactional account. The investigation identified 39 transactions totaling R10 million to suspicious accounts, including Adv. Huma’s personal accounts.

Findings of the SIU investigation

The SIU’s investigation found that Adv. Huma, while serving as an NLC board member, allegedly misused his position to influence the allocation of NLC grant funding to entities controlled by his family, resulting in over R21 million that was intended for community upliftment projects, including a chicken farming initiative in Marikana, Northwest.

Instead of benefiting the community, the funds were allegedly misappropriated for personal gain and never used for their intended purpose. The investigation reveals a pattern of money laundering and fraud, as NLC grant funds were siphoned through BDH Trust, BDH Group, and various NPOs, with the money ultimately used to acquire properties and assets controlled by Adv. Huma and his associates.

The SIU investigation has uncovered significant financial misconduct, including:

• Misuse of NLC funds: Over R21 million in NLC grant funding was diverted to entities linked to Adv. Huma, including the Samaritan Initiative NPO and Reagile NPC, which were responsible for projects that were never completed.
• Conflict of interest: While serving as an NLC board member, Adv. Huma failed to declare his interest in entities that received NLC funding, violating the Lotteries Act.
• Money laundering: Funds were transferred through multiple NPOs and entities, including Mbidzo NPO, Matieni Community Centre, and Thwala Front, before being deposited into BDH Trust’s accounts.
• Personal enrichment: Adv. Huma used NLC funds to purchase and improve properties, including farms owned by Silverlite Trading, a company he controls.

The SIU will also seek to recover over R21 million in misappropriated funds from Adv. Huma and the implicated entities.

Call for public assistance and reporting corruption

The SIU extends gratitude to members of the public who have come forward with valuable information regarding corruption and maladministration at the NLC. The courage and commitment to justice play a crucial role in holding those responsible accountable and ensuring that public resources are used for their intended purpose.

By speaking out, members of the public contribute to a culture of transparency, integrity, and good governance. The SIU encourages the public to continue reporting any wrongdoing, knowing that their efforts make a real difference in the fight against corruption.

The SIU was authorised by President Cyril Ramaphosa in terms of Proclamation R32 of 2020 to investigate allegations of corruption and maladministration in the affairs of NLC and the conduct of NLC officials, and to recover any financial losses suffered by the State.

The order of the Special Tribunal is part of implementing SIU investigation outcomes and consequence management to recover financial losses suffered by State institutions due to corruption or negligence.

The SIU is empowered to institute a civil action in the High Court or a Special Tribunal to correct any wrongdoing uncovered during investigations caused by corruption, fraud, or maladministration. In line with the Special Investigating Units and Special Tribunals Act 74 of 1996, the SIU refers any evidence pointing to criminal conduct it uncovers to the National Prosecuting Authority (NPA) for further action.

For enquiries:
Kaizer Kganyago
Spokesperson: Special Investigating Unit
Cell: 082 306 8888
Email: Kkganyago@siu.org.za

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