Corruption probe | Former lotteries boss fails in bid to access R2.8 million pension fund

Former NLC COO Philemon Letwaba’s pension benefit will remain preserved after he failed in his legal bid for it to be released to him. Former Chief Operating Officer of the National Lotteries Commission (NLC) Philemon Letwaba’s legal bid to have his R2.8 million pension benefit released after it was preserved by the Special Investigating Unit (SIU) in 2022, following allegations that he dipped his fingers into National Lotteries money,hasfailed. The Special Tribunal last week rejected his arguments that the Tribunal does not have the authority under the Pension Fund Act to eventually allow pension deductions if wrongdoing was ever established on Letwaba’s part.

According to Letwaba’s argument, only a court, and not the Tribunal, has the power to order the pension deduction, if it ever came to that. Thus, his counsel told the Tribunal that the funds must be released to him. The SIU approached the Special Tribunal on an urgent basis to freeze the pension benefits of Letwaba after he resigned from the NLC pending the institution of a disciplinary hearing into his role in the distribution of NLC funds to several Non-Profit Organisations (NPOs).

An investigation by the SIU into the affairs of the NLC had revealed that Letwaba allegedly benefited personally from monies received by NPOs from the NLC. The SIU investigation had revealed that he allegedly used friends and family businesses, and Trusts to receive money from NPOs for his benefit and that of his family. It argued that Letwaba’s pension fund is subject to deduction because if the review of the grants made to certain NPOs is found to be unlawful and if Letwaba played a role in that, he would have to repay the money back. If he was unable to do so, it had to be deducted from his pension, the SIU said.