Former Sports Minister Fikile Mbalula implicated in alleged loan from Lottery corruption scandal

Background

The Special Tribunal froze the luxury property of former National Lotteries Commission (NLC) chief operating officer Philemon Letwaba, as well as two other properties, including the residence of his wife, Rebotile Malomane, in a gated community in Pretoria. The Tribunal heard evidence that these properties were purchased with funds diverted from lottery grants. Letwaba resigned from the NLC while on suspension pending a disciplinary inquiry.

Allegations

Rebotile Malomane claims that her company, Ironbridge Travelling Agency and Events, loaned R3-million to former Sports Minister Fikile Mbalula to help him purchase a luxury home in the posh suburb of Bryanston in Johannesburg. Malomane and Johannes Letwaba, Philemon’s older brother, assert that the funds for the alleged loan to Mbalula came from fees that Ironbridge was paid by Lulamisa Community Development for work on Durban’s Commonwealth Games bid. Mbalula denies the allegations.

Property Purchase

Documents suggest that Mbalula and his wife initially made a cash offer of R5.6-million for the house. This offer was later withdrawn, and Upbrand Properties, a company closely linked to the Letwaba brothers and at the center of lottery corruption, purchased the house with an identical offer. Philemon Letwaba’s affidavit claims that the unwritten understanding was that Upbrand would hold the property until the R3-million loan was repaid. However, there is no explanation for the remaining R2.6-million of the property’s purchase price.

Loan Repayment

As Mbalula failed to repay the loan, Upbrand took action and evicted the tenants from the property. Malomane corroborates this in her affidavit and further states that Mbalula and his family briefly lived in the house before vacating. Mbalula denies ever living in the house or taking a loan from Upbrand.

Denials and Accusations

Mbalula refuses to comment on the claims made in the affidavits, stating that he cannot answer to any affidavit not written by himself. Solly Siweya, an associate of Mbalula’s, denies that Ironbridge or Malomane had worked on the Commonwealth bid and was not aware of any payments to Ironbridge from Lulamisa. He also denies any wrongdoing on behalf of Mbalula.

The case of the luxury house in Bryanston is complicated, with accusations and counter-accusations involving a range of shady characters who have plundered millions of rands from the Lottery. While it remains unclear whether Mbalula lived in the house or took a loan from Upbrand, the fact that he associated with those now implicating him in affidavits is a clear indication of poor judgment.