Whistleblower’s Documents Expose Multi-Million Rand Lottery Grant Fraud at South Africa’s NLC
A whistleblower’s documents have exposed a multi-million rand corruption scandal at South Africa’s National Lotteries Commission (NLC), revealing how funds meant for drug rehabilitation were allegedly diverted for personal luxury by individuals linked to senior commission officials.
The investigation began in 2018 after Ado Krige, owner of a Pretoria drug rehabilitation centre, contacted the Limpopo Mirror with concerns about attorney Lesley Ramulifho. Ramulifho had allegedly hijacked a dormant non-profit, Denzhe Primary Care, to secure a R20-million lottery grant in 2017. The grant was ostensibly for building a new rehab centre on Krige’s property, but Krige soon suspected fraud.
Krige provided the Limpopo Mirror and investigative outlet GroundUp with bank statements and internal documents. These revealed that Ramulifho spent at least R5-million of the Denzhe grant on a luxury home, two Ocean Basket franchises, fine dining, high-end décor, and repairs to his Porsche. A quantity surveyor later found the actual construction value of the rehab was only R4.8-million, with proper completion estimated at R11-million. The NLC ultimately disbursed over R27.5-million for the project.
The reporting also uncovered connections between Ramulifho and Phillemon Letwaba, then NLC Chief Operating Officer, and Letwaba’s brother, Johannes, whose company benefited from the rehab construction.
The story ignited a political storm. It forced Parliament’s Portfolio Committee on Trade, Industry and Competition to shift its focus to the NLC, prompting former Minister Ebrahim Patel to order an investigation. That probe implicated Letwaba and Ramulifho in suspicious grants totalling tens of millions of rands.
Krige’s role as whistleblower came at great personal cost. After he formally complained to the NLC and police in 2018, he faced a R17-million lawsuit from Ramulifho, which never proceeded to court. His property was targeted in an arson attack that destroyed his bakkie and killed livestock. A second rehab centre he owned for women was burned down. Financial strain from the delayed, shoddy construction forced him to sell his farm. He suffered serious illness and was frequently bedridden before his death in January 2024.
Krige, a former biker and ex-drug dealer turned police informant, had a history of confronting criminal networks. In his 2018 police affidavit, he detailed his past cooperation with the South African Narcotics Bureau.
Despite his death, the scandal’s repercussions continue. Only one of four rehab centres funded under the alleged R300-million NLC initiative is operational—Krige’s, which remains incomplete and substandard. The case underscores ongoing challenges with governance and oversight at the National Lotteries Commission, with calls for full accountability over the misappropriated public funds.
