- The SIU obtained an urgent interdict to freeze R10-million from the sale of a Waterkloof mansion linked to former National Lotteries Commission board member William Huma.
- An investigation revealed Lottery funds meant for community projects were diverted through various non-profit organisations and entities to allegedly pay for Huma’s luxury property.
- The Special Tribunal has granted an interim order preventing disbursement of funds pending the final hearing on 7 March 2025, as the SIU seeks to recover over R21-million in misappropriated funds.
The Special Investigating Unit (SIU) obtained an urgent interdict earlier this week to prevent an attorney from paying out the proceeds of the sale of a house linked to William Huma, an advocate and former National Lotteries Commission (NLC) board member, which was bought using Lottery funds.
The Special Tribunal granted the SIU an interim interdict restraining 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 went to court on Tuesday to launch an ex parte (without the other party) application to stop the disbursement of funds after it received a tip-off that the house had been sold. The order does not halt the sale, only the disbursement of the transfer of funds to Huma.
“The 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 NLC,” said the statement.
Although GroundUp was unable to confirm it, the house may have been sold for a substantially higher price.
Huma bought the house for R4-million in December 2003 and registered a bond for R8-million in 2017. This means that the actual price could have been as high as R18-million.
The house is situated in a luxury private estate abutting a golf course in Waterkloof, an upmarket Pretoria suburb. It is owned by the BDH Group, a private company in which Huma is the sole director.
A graphic compiled by the SIU shows how lottery money flowed from Lottery-funded entities and companies implicated in lottery corruption, to help pay for Huma’s luxury home.
Lottery Chair
A luxury house purchased by Alfred Nevhutanda, the former NLC Board chairperson, was also paid for by non-profits that received lottery funding intended for “good causes.” It too is frozen by a court-imposed preservation order.
“The SIU’s urgent application [involving Huma’s house] was granted to prevent the dissipation of the proceeds from the Pretoria immovable property,” the SIU said.
“Given the history of mismanagement and a lack of cooperation from 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 Huma, a former NLC board member, and several entities linked to him, including the Samaritan Initiative NPO, Reagile NPC, Silverlight Trading (Pty) Ltd and the BDH Family Trust”.
The SIU said its investigation had revealed that BDH Trust’s bond account was used as a transactional account and it had identified 39 transactions totalling R10-million to suspicious accounts, including Huma’s personal accounts.
“While serving as an NLC board member, [Huma] allegedly misused his position to influence the allocation of NLC grant funding to entities controlled by his family”, the SIU said. It said that over R21-million had been misappropriated.
“Instead of benefiting the community, the funds were allegedly misappropriated for personal gain and never utilised for their intended purpose.”
The investigation “revealed a pattern of money laundering and fraud, with NLC grant funds siphoned through BDH Trust, BDH Group, and various non-profit organisations, with the money ultimately used to acquire properties and assets controlled by Huma and his associates,” the SIU said.
The SIU said its investigation has uncovered other “significant financial misconduct”, including
- conflict of interest when “Huma failed to declare his interest in entities that received NLC funding, violating the Lotteries Act”;
- money laundering through the transfer of funds through multiple entities, including Mbidzo NPO, Matieni Community Centre, and Thwala Front, before being deposited into BDH Trust’s accounts”; and
- personal enrichment by using 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 Huma and the implicated entities.”
Payment from non-profits
A GroundUp investigation in 2022 uncovered payments from non-profits that had received lottery grants that were paid into the bond account for Huma’s luxury Pretoria home, into his private bank account, and also to pay for a sprawling estate in North West Province. The property, which has been frozen under a preservation order, was subsequently converted into a luxury boutique hotel. (See the last section of the linked story.)
GroundUp has also previously revealed how Reagile, of which Huma and a friend were directors, received R4.6-million in lottery funding for a hydroponic vegetable farming project that was supposed to create jobs and supply produce to residents of a poor North West community.
Our investigation into Huma also uncovered details of a R13-million Lottery grant to The Samaritan Initiative to develop a chicken farm. The project was meant to uplift women in Marikana, the site of the massacre of striking miners in 2012.
Huma resigned in late 2022 after he was confronted with evidence of his alleged corruption.
In its statement, the SIU extended gratitude to members of the public “who have come forward with valuable information to the SIU 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.”
