Makhudu Sefara, editor of the Sunday Times, has been placed on special leave after being implicated in a Special Investigating Unit (SIU) probe about misappropriated lottery funds.
Sefara has denied the allegations, saying the SIU is grandstanding and making false claims.
On Tuesday, the SIU — an independent statutory body with a mandate to investigate allegations of corruption, malpractice and maladministration in government departments, municipalities and state-owned entities — said it has received full repayment of R3.2m from beneficiaries related to the National Lotteries Commission (NLC) “who unduly benefited”.
The amount is made up of R1.5m “that was misappropriated by Todi Media Development Foundation NPC” and R1.71m “unduly awarded” to Zibsiflo NPC.
The probe found that the commission granted Todi Media R1.5m in 2018 that was intended for a media project that included covering journalists’ accommodation, car hire, catering, equipment rental, guest speakers, marketing and security.
Instead of being used for that purpose, the SIU said that R550,000 was diverted to an entity called Unscripted Communication, whose director is Makhudu Sefara.
A total R900,000 more went to Black Dungaree, whose director is Daniel Matome Malatjie. The SIU said the amount was used to purchase a property, Bassonia Rock Extension, in Johannesburg.
Khutso Daniel Makwela, director of Todi Media, admitted to the misuse of the funds. He signed an acknowledgement of debt. The full amount of R1.5m was repaid on March 30.
In a statement sent to Business Day, Sefara said the funds were used as intended, having been requested by Makwela to put together a community media training event.
He said the event was held on December 10 2018 at Birchwood Hotel, in the east of Johannesburg, with more than 50 people in attendance.
“The facts are plain and available to the SIU. The event has taken place and was attended by over 50 people. Pictures and videos were taken at the event. Accommodation was paid for. Flights were booked and paid for. The event was addressed by the GCIS deputy head at the time along with other speakers. I facilitated the event.”
Sefara provided Business Day with images of attendees at the event. The publication has been unable to obtain the full list of receipts mentioned in Sefara’s statement.
“If my company, a service provider, is guilty for receiving funds to organise an event, this must surely also mean the hotel, the airline, bus companies that received funds to accommodate and transport these conference attendees are equally liable. It’s preposterous,” he said.
Arena Holdings, owner of the Sunday Times and Business Day, said it has engaged directly with Sefara regarding the allegations. Sefara will take special leave pending the conclusion of an independent investigation.
Sefara, who also serves as chair of the National Editors’ Forum (Sanef), has “denied any wrongdoing and has provided the company with his account of the events in question”.
“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.
“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.”
Mike Siluma, deputy editor of the Sunday Times, has been appointed acting editor of the publication with immediate effect.
Makwela, acting as director of Zibsiflo NPC, admitted misuse, signed a second acknowledgement of debt, and repaid R1.71m. In this case Zibsiflo was granted funds for women’s soccer clinics in the Free State earmarked for transport, accommodation, facilitators and publicity.
The project was not implemented, with Daniel Matome Malatjie being implicated again, with Charles Malatji.
The SIU said these cases “highlight a co-ordinated scheme in which public funds meant for community upliftment were diverted into private pockets and toward property purchases”.
“Two investigations revealed that the same network of individuals misused grants intended for media development and women’s soccer clinics.
“This recovery demonstrates the SIU’s commitment to protecting public funds. Money meant to empower communities was instead diverted into private enrichment schemes. The SIU has ensured repayment. Repayment and settlement agreements do not absolve one of the SIU’s obligation to make a referral for evidence of criminal conduct.”
Sefara resigned from his post at Sanef at a management committee meeting of the organisation on Tuesday.
“Sefara was afforded an opportunity to give his version of the events at the meeting, where he denied the allegations. He offered to step aside from his role at Sanef while he responds to the allegations,” Sanef said in a statement issued on Tuesday night.
Tshamano Makhadi, the current deputy chairperson, was appointed as acting chairperson.
“Furthermore, Sanef has decided to appoint an independent legal team to evaluate the evidence and to report back as soon as possible.”
- 30/04/26 | This article has been updated to reflect the status of cost receipts that Business Day has obtained.