The Special Investigating Unit (SIU) has obtained an order freezing almost R2.8-million in pension payments to Philemon Letwaba, the embattled former chief operating officer of the National Lotteries Commission (NLC).

Letwaba resigned from his post in August ahead of a planned disciplinary hearing into allegations that lottery funds were diverted to companies linked to him and his family.  

After his resignation, Letwaba was set to received a multimillion-rand pension. But on Friday, Special Tribunal Judge Lebogang Modiba delivered an order blocking his pension payout. 

Modiba interdicted pension administrator the Liberty Group from paying out any benefits to Letwaba for the next 60 days. 

Within that time, the SIU is expected to bring a comprehensive application to freeze or cancel his pension. 

School funds 

The SIU said on Wednesday that its probe into the NCL found that Letwaba allegedly personally benefitted from millions of rands that the lottery granted to nonprofit groups. 

"The SIU investigation had revealed that Mr Letwaba allegedly used friends' and family businesses and trusts to receive money from NPOs for his benefit and that of his family," it said. 

One of the most egregious cases the SIU is probing involves R25-million that was granted to a nonprofit group to rebuild a torched school in Vuyani, Limpopo. 

"Twelve days after the NPO received the money, it allegedly transferred approximately R4-million to Upbrand Properties without evidence of work being done and in violation of the funding agreement," it said.

Upbrand Properties is allegedly linked to Letwaba via a family member. The group is one of seven businesses linked to the former COO that the SIU says received lottery money. The other six are Mosokodi Water Solutions and Drilling, Mosokodi Farming Project, Kaone Wethu, Redtag, Mosokodi Trust and Letwaba Family Trust.

Letwaba has denied allegations of wrongdoing, according to news organisation GroundUp, which has been closely following the case. He was also cleared by a previous disciplinary hearing. 

In 2019 he sued GroundUp and senior journalists Raymond Joseph and Nathan Geffen for publishing what he called "wrongful and defamatory" articles about him. Letwaba has demanded that the site publish an apology and pay him R600 000 in damages. 

GroundUp has defended its reporting as both true and in the public interest. 

In a response submitted to the Western Cape High Court earlier this year, the news group said it intended to lead evidence to prove that Letwaba and his family benefitted from tens of millions of rands from lottery grants.