NPO director convicted after R700,000 Lottery Commission funds used to buy personal vehicle

A non-profit organisation director has been convicted of fraud and money laundering after R700,000 in National Lottery Commission (NLC) funding intended for charitable work was used to purchase a motor vehicle for personal use, the Hawks said.

Nathan Baldwin Ramailane, 62, was convicted on one count of fraud and two counts of money laundering by the Kimberley Serious Commercial Crimes Court.

Ramailane was charged alongside his organisation, Heseqwa Caring Network, after the NLC approved a funding application worth R700,000 and paid the money to the organisation.

However, concerns emerged when the commission attempted to verify whether the organisation was operating and using the funding for its intended purpose.

Fraudulent report submitted

Hawks spokesperson Lieutenant Colonel Tebogo Thebe said the NLC requested a progress report from Heseqwa Caring Network as part of its monitoring processes before visiting the organisation’s premises.

“The organisation was found not to be in operation,” said Thebe.

Investigators said a suspected fraudulent report, signed by the organisation’s directors, was submitted to NLC officials to mislead them into believing that the organisation was operational.

The NLC subsequently launched an internal investigation before laying a complaint with the Hawks’ Serious Commercial Crime Investigation unit in Kimberley.

“The actual loss suffered is R700 000 caused by the conduct of the accused,” said Thebe.

R700,000 funding used for personal benefit

The investigation further revealed that the funds were used to purchase a motor vehicle, which was later used by Ramailane for personal reasons.

Northern Cape Hawks provincial head Major-General Stephen Mabuela said the conviction should send a strong warning to those who misuse non-governmental and non-profit organisations to commit crimes.

“We are hoping for a good sentence that will send the message that crimes committed using NGO/NPOs will not be tolerated,” Mabuela said.

Ramailane is expected to return to the Kimberley Serious Commercial Crimes Court on December 8 for sentencing.

The Hawks said the case formed part of efforts to curb crimes committed through non-governmental organisations.

IOL News