An investigation into the misuse of public funds has placed a senior media figure under scrutiny after the Special Investigating Unit (SIU) uncovered a multimillion-rand scheme involving money meant for community upliftment.
The SIU confirmed it has recovered R3.2 million in misappropriated National Lotteries Commission (NLC) funds, exposing what it describes as a coordinated scheme in which grants intended for development projects were diverted for private gain, including property purchases in Johannesburg.
SIU spokesperson Selby Makgotho said 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.
“These cases highlight a coordinated scheme in which public funds meant for community upliftment were diverted into private pockets and toward property purchases.”
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. The SIU found that the project was never implemented.
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.
While the SIU has secured full repayment through signed Acknowledgements of Debt, it stressed that this does not shield those involved from further legal consequences.
“Repayment and settlement agreements do not absolve one of the SIU's obligation to make a referral for evidence of criminal conduct.”
The unit confirmed that evidence of wrongdoing will be referred to the National Prosecuting Authority for possible criminal prosecution, while civil action may also be pursued to recover additional losses.
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.
“Arena Holdings has engaged directly with Mr Sefara regarding the allegations. Mr Sefara has denied any wrongdoing and has provided the company with his account of the events in question.”
The company confirmed it will appoint an independent investigator to conduct a full review of the matter.
“Arena Holdings will appoint an independent investigator to undertake a comprehensive review of all relevant facts and circumstances surrounding the matter. The findings of this independent process will guide the company’s decisions going forward,” it said.
Managing director of News & Media at Arena Holdings, Nwabisa Makunga, said the decision was taken to allow due process to unfold.
“Having considered the matter, management has resolved to afford Mr Sefara the necessary time and space to address the allegations and to seek to clear his name.”
Deputy editor Mike Siluma has since been appointed acting editor of the Sunday Times.
The Star