The Special Investigating Unit (SIU) has successfully retrieved a total of R3.2 million in funds misappropriated from the National Lotteries Commission (NLC), highlighting a troubling case of misuse involving public finances intended for community development.
According to the SIU, it has recovered R1.5 million from Todi Media Development Foundation NPC and R1.71 million from Zibsiflo NPC, both of which improperly profited from NLC grants.
Investigations carried out under Proclamation R.32 of 2020 revealed that funding designated for development initiatives was rerouted to private accounts and used for personal gains, including the purchase of real estate.
Specifically, Todi Media Development Foundation received a R1.5 million grant in 2018 for a media development initiative. The funds were to cover costs such as accommodation, transportation, equipment rental, and training but were instead sent to private companies.
Unscripted Communication, led by Makhudu Sefara, was given R550,000, while Black Dungaree, owned by Daniel Matome Malatjie, received R900,000. The SIU discovered that a substantial portion of these funds was spent on acquiring property in Bassonia Rock Extension, Johannesburg.
Director Khutso Daniel Makwela acknowledged the misappropriation, signed an Acknowledgement of Debt, and repaid the complete R1.5 million on 30 March 2026.
A similar situation was evident in the Zibsiflo NPC case, which was allocated R1.71 million for women’s soccer clinics in the Free State. The SIU found that the intended project was never carried out.
Instead, Black Dungaree received R1.36 million, and Charles Malatji obtained R200,000. It is alleged that around R900,000 was used to buy property in Bassonia, under the names of Matlala Martha Malatji and Ngwako Moses Malatji.
Again, Makwela admitted to the misconduct, signed an Acknowledgement of Debt, and returned the full R1.71 million.
The SIU stressed that although the funds have been recovered, repayment alone does not exempt individuals from facing criminal charges. Under the Special Investigating Units and Special Tribunals Act 74 of 1996, any evidence of criminal behavior will be forwarded to the National Prosecuting Authority (NPA) for further examination.
Additionally, the SIU is authorized to initiate civil actions in the High Court or Special Tribunal to recover losses and address any misconduct identified during the investigations.
The unit reiterated its dedication to protecting public funds and holding accountable those who misappropriate resources meant for community empowerment.
