According to the SIU, Pheto purchased the luxury home from a construction company linked to alleged corruption at the NLC.
“The SIU investigations have found that the money used for the purchase of the land and construction of the home came from non-profit organisations that received NLC funding meant for the roll-out of a public campaign and culturally sensitive medical intervention projects aimed at achieving traditional circumcision practice.
“After the preservation order was granted, Pheto’s legal representatives contacted the SIU and the AFU indicating that they will not contest the preservation order granted by the High Court,” an SIU statement read.
The unit said the auction is part of its actions to recover any state funds used illegally.
“The SIU was, in terms of Proclamation R32 of 2020, authorised by President Cyril Ramaphosa to investigate allegations of corruption and maladministration in the affairs of NLC and the conduct of NLC officials, and to recover any financial losses suffered by the State or NLC.
“The auctioning of Pheto’s home is a continuation of the implementation of the SIU investigation outcomes and consequence management to recover assets and financial losses suffered by State institutions and/or to prevent further losses,” the statement said.
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