Former Lottery Board Member Required to Repay R21 Million in Misused Grant Funds

The Special Tribunal has ruled that a R16.5 million grant awarded by the National Lotteries Commission (NLC) to the Samaritan Initiative NPO, along with a R4.7 million payment to Reagile NPC, are unlawful and void.

Both organizations were linked to former NLC board member William Huma. The Tribunal found that Huma caused damages exceeding R21 million to the NLC, attributing this to major misconduct, negligence, dishonesty, and violations of fiduciary duties.

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Huma and the involved organizations are obligated to repay the specified funds.

The Special Investigating Unit (SIU) has begun initiatives to recover the entire amount. Spokesperson Kaizer Kganyago described the ruling by tribunal judge Margaret Victor as a “landmark” decision.

This marks the first ruling to annul grant funding amid ongoing SIU investigations into NLC-related corruption.

The investigation began in 2020 after claims surfaced that NLC board members had diverted funds meant for charitable initiatives to entities they controlled, indulging in lavish properties and luxuries.

Kganyago indicated that the SIU has filed 18 review applications concerning NLC grants, attempting to annul them, with the combined value exceeding R320 million. More applications are anticipated.

In February 2025, the tribunal issued a preservation order for R10 million from the sale of a luxury property owned by Huma, pending the outcome of the review application.

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Despite Huma contesting the preservation order, Judge Victor noted in her recent ruling regarding the review application that this should not impede the review process.

She remarked that a whistleblower had reported Huma’s actions during his tenure on the NLC board to the SIU.

“The SIU claims that the current directors took over the Samaritan Initiative on Huma’s suggestion. Reagile was also established as a shelf NPC [non-profit company] at his direction.”

“Huma’s strategy was to utilize these organizations as channels to secure funding from the NLC. The grant given to the Samaritan Initiative [R16.5 million] was intended to empower women and children in villages within the Bojanala District and to promote sustainable employment and uplift rural communities.”

“Ultimately, the grant funds were spent to construct facilities and purchase chicken farming equipment for a farm owned by Silverlite, which is also owned by Huma’s niece.”

Judge Victor stated that Huma subsequently became the sole director of that farm.

She observed that the “chicken venture” failed, the farming equipment was stolen, and what was left had little value. The SIU chose not to pursue a preservation order for these assets.

Read:
NLC to file criminal charges, civil litigation against former board members [Nov 2023]
Board member’s neglected farm business consumed R4.6m in lottery funds [May 2023]
How lottery funds financed mansions for the elite [Jan 2023]

Regarding the Samaritan Initiative, one original member was found and claimed he did not recognize any current directors. He stated he had never sought funding.

The SIU pointed out that Reagile had two directors—Huma’s wife and his nephew.

The intended goal of the Reagile grant (R4.6 million) was for a community development project.

“There is no evidence supporting that project,” Judge Victor remarked.

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In contesting the annulment of the grants, Huma raised several technical objections. Most notably, he asserted that he had committed no wrongdoing and that his conduct was “impeccable.”

Huma contended that, as a board member, he had no involvement with grant applications and did not gain financially from the grants.

However, an independent legal firm commissioned by the NLC conducted an investigation revealing that Huma had breached the Lotteries Act by misusing his position as a board member for personal and familial gain.

He declined to participate in a consultation and presented no defense.

Judge Victor noted that the NLC stated that the uncontested evidence was clear.

“The NLC indicated that testimony from three witnesses corroborated that they applied for funding on Huma’s recommendation. He failed to dispute this,” she stated.

It was acknowledged that Huma was a board member when the grants were awarded; that he was the sole director of Silverlite at the relevant time; that he purchased the farm using grant funds allocated to the Samaritan Initiative through Silverlite; that his relatives were involved as members/directors of both the Samaritan Initiative and Reagile; that the two organizations had received over R21 million in grants; and that neither fulfilled its intended mission statement goals.

Misleading defenses

She asserted that Huma’s defenses were either unfounded denials or “misleading arguments.”

In support of the SIU’s position, she upheld that Huma’s dishonest and illegal actions warranted an order for him to repay funds that could not be reclaimed from the Samaritan Initiative and Reagile.

Concerning legal costs, she commented on Huma’s unacceptable behavior.

She described Huma as a non-practicing advocate, trained in law, who “should have understood that his actions contradicted constitutional principles.”

“His defenses were superficial, convoluted, and without merit,” she remarked, ordering that costs be paid on a punitive basis.

She indicated that proceeds from the sale of Huma’s Waterkloof property would remain preserved until the matter is definitively resolved.

Kganyago stated that the SIU can now initiate enforcement actions to recover the funds following the Special Tribunal’s ruling.

Furthermore, he mentioned that the SIU has preserved a farm in North West and a boutique hotel in Rustenburg owned by Huma, linked to NLC funds in connection with another investigation.

“As part of executing the order [by Judge Victor], the SIU will organize auctions for the implicated properties. Proceeds from these auctions will be redirected to the NLC to fund community upliftment projects.”

© 2025 GroundUp. This article was originally published here.

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