But lawyer for acting CEO Terrence Magogodela says his client 'expects to be a witness for the state'
Athletics South Africa boss Terrence Magogodela used Lottery grant money to pay lawyers and transfer costs for a house he bought.But Magogodela repaid the money to the Special Investigating Unit , which is tasked with recouping funds lost to corruption.
Magogodela, ASA's chief financial officer at the time, was listed as the project coordinator of Inqaba Yokulinda in the grant application submitted to the National Lotteries Commission , even though he was an official of ASA.But rather than use the money for the track, Sibanda spent millions on things unrelated to the project, including settling personal debts.the project, supposedly signed by ASA President Aleck Skhosana, was included in the Inqaba Yokulinda application.
"The AoD and its payment terms are not, as Mr Magogodela and Mr Sibanda contend, standard arms' length commercial terms", the document points out."Ignoring the accumulation of interest and assuming that the 10%"collection commission" is paid separately, it would take Mr Magogodela until December 2031 to repay the capital alone.
There is now a legal dispute between Magogodela and Sibanda regarding repayment of the outstanding"loan" amount, which has been referred for arbitration and"it will be premature to comment on it", Maharaj said.A source with direct knowledge of the investigation said the SIU docket on Inqaba Yokulinda had been sent to the NPA"a long time ago" with a recommendation that the people involved be"criminally prosecuted".
Maharaj denied that the ASA's attorney had requested a copy of the docket,"and is not entitled thereto, especially since no criminal charges are pending against Mr Magogodela". Instead of the money going towards building the track, millions were paid out for things unrelated to the grant. This included R2.5-million to attorneyshe owed to Clippers, a financial services company; R1.87 million to a Unicus Standard Bank account; R2.5 million to"Ncasa"; R806,550 to a software company; and R265,840 to two different vehicle sales and repair companies.
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