A shocking investigation by the Special Investigating Unit (SIU) has uncovered a multimillion-rand scheme involving the misuse of National Lotteries Commission (NLC) funds, with a senior media figure implicated in the scandal. The SIU has recovered R3.2 million in misappropriated funds, exposing a coordinated scheme in which grants intended for development projects were diverted for private gain, including property purchases in Johannesburg.
According to SIU spokesperson Selby Makgotho, the funds were traced to two non-profit organisations, Todi Media Development Foundation and Zibsiflo NPC, both of which failed to implement the projects they were funded for. The National Government has been working to prevent such abuses of public funds.
Systemic Abuse of NLC Funding System
The investigation, conducted under Proclamation R.32 of 2020, found that a R1.5 million grant awarded to Todi Media for a media development project was instead channelled to private companies, with a significant portion allegedly used to purchase property in Bassonia. A separate R1.71 million grant allocated to Zibsiflo NPC for women’s soccer clinics in the Free State was similarly misused, with large sums redirected to individuals and entities linked to the same network.
Makgotho said both matters point to a broader pattern of systemic abuse within the NLC funding system. “This recovery demonstrates the SIU’s commitment to protecting public funds. Money meant to empower communities was instead diverted into private enrichment schemes,” he said. The SIU has secured full repayment through signed Acknowledgements of Debt, but stressed that this does not shield those involved from further legal consequences.
Implications for the Media Industry
The fallout from the investigation has now reached the upper ranks of the media industry, with Arena Holdings placing Sunday Times editor Makhudu Sefara on special leave after he was implicated in the SIU findings. In a statement, Arena Holdings said it had engaged directly with Sefara, who denied any wrongdoing. The company confirmed it will appoint an independent investigator to conduct a full review of the matter.
Some of the key issues that will be investigated include:
- The misuse of NLC funds for private gain
- The failure of non-profit organisations to implement funded projects
- The involvement of senior media figures in the scandal
The SIU will refer evidence of wrongdoing to the National Prosecuting Authority for possible criminal prosecution, while civil action may also be pursued to recover additional losses.
