GROUNDUP: R27m in funding from lottery yet six years later Mpumalanga rehab centre still not operational

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A leaked investigation report finds that the value of construction work falls short of the funds paid by the National Lotteries Commission.

The funding for the rehab was part of several grants totalling over R67.5-million doled out to SAYM-related entities since 2016. The grants are all recorded in NLC annual reports underAt the centre of the grants is the involvement of SAYM executive director Alfred Sigudhla, who has enjoyed a close relationship with the NLC and its predecessor, the National Lotteries Board.

Asked about this, Mafisa said that it is the NLC and not the SAYM that is under investigation, but that the SAYM has cooperated with all “all state organs and provided information to enable them to take whatever decision is in the interest of law and order”. “Photos of the construction were taken during a site visit and it was clear that the value of construction work at the Drug Rehab Centre fell far short of the R22-million that was paid by the NLC [at that time],” according to the report.Construction work had begun even though the building plans had not been approved by the Mbombela City Council.Construction was not in accordance with the plans that were presented to the NLC and in many instances existing buildings were merely revamped.

Nexius also recommended further investigations be done into how the money was spent, including to whom the SAYM paid funds from the grant.Nexius also said it was unsuccessful in trying to obtain documents about the project from the NLC.The rehab is set in the picturesque Renosterkop Valley, a few kilometres outside Mbombela. The area is zoned for residential and farming uses, and SAYM was required to rezone the property before building and operating a rehab on it.

“The water from the river flows into the Sterkspruit and then the Crocodile River. Everyone who depends on water from those rivers will be affected if there are not proper sewerage systems at the rehab,” he says. Among the objections is the placing of a drug rehab in the middle of a rural residential area, which residents say poses a security risk to them.

Nel took GroundUp on a tour of his property. We were able to view parts of the rehab from his property and from a road running past it.

 

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