Limpopo NGO Rocked by R4.4 Million fraud scandal
Programmer in front of a monitor
A forensic investigation has uncovered a major financial scandal at a Limpopo-based non-governmental organisation (NGO), Hlahlolanang Health, revealing that R4.4 million in donor funding was allegedly misappropriated over a two-year period.
The investigation, conducted by Black Hawk Private and Forensic Investigation and Risk Solutions, points to three former administrators and a fourth individual identified only as “Dineo” as key figures in the suspected misuse of funds. The alleged scheme involved unauthorised bank withdrawals, manipulation of account signatories, and fraudulent financial transactions.
According to the report, Elizabeth Madisha and Honey Phala, who once served as administrators, were the sole signatories on the NGO’s bank accounts. Alongside then-chairperson Maile Nickson, the trio is accused of channeling donor money into personal accounts, in apparent violation of governance protocols.
The funds—donated by the National Lotteries Commission (NLC), Marula Platinum Mine, and the Department of Social Development—were allegedly siphoned through seven irregular transactions between April 2021 and March 2023. One particularly alarming transaction saw R3.3 million withdrawn in a single instance.
“There is clear evidence of deliberate financial misconduct, manipulation of signatory powers, and systematic concealment of income and expenditure,” said lead investigator Papi Jonathan Lebese.
Records show that shortly after a R101,345.20 donation in April 2021, R62,000 was divided among the four accused, followed by similarly structured withdrawals following subsequent deposits. In one instance, after a R633,444.65 donation in March 2022, R450,000 was allegedly split between Madisha, Phala, and Nickson.
Critically, none of these financial activities were authorised by the NGO’s board. The investigation further revealed that bank signatory access was changed without the board’s consent, allowing the accused to operate without oversight.
The forensic team has recommended that the case be referred to the Hawks, the Special Investigating Unit (SIU), and the National Prosecuting Authority (NPA) for further investigation and potential prosecution. Civil recovery through litigation is also on the table, along with a full financial audit and the use of banking subpoenas to trace the missing funds.
In addition to possible criminal charges, disciplinary proceedings have been advised. Allegations include gross dishonesty, fraud, breach of trust, insubordination, unauthorised use of organisational resources, and failure to declare conflicts of interest.
The fallout has already had severe consequences for the NGO’s operations. Emily Shilakoe, a member of Hlahlolanang Health, confirmed that critical health services have ground to a halt.
“Hlahlolanang used to run vital HIV/AIDS counselling and testing services. Once the funds were misused, stipend payments stopped, and with no reports to show progress, both the Department of Health and the Lotto pulled support. Our beneficiaries have been left stranded,” said Shilakoe.
As the investigation moves forward, the future of Hlahlolanang Health remains uncertain. What is clear, however, is that a breach of this magnitude has devastated both the integrity of the organisation and the communities it was meant to serve.