Following a statement issued by the Special Investigating Unit (SIU), in which Sunday Times editor Makhudu Sefara is implicated in alleged financial irregularities, Arena Holdings has formally engaged him on the matter.
The SIU investigation uncovered a pattern involving a network of individuals who allegedly misused grants intended for media development and women’s soccer initiatives.
According to the SIU, the National Lotteries Commission (NLC) awarded a R1.5 million grant in 2018 to Todi Media Development Foundation NPC for a media project. The funding was meant to cover expenses such as journalists’ accommodation, car hire, catering, equipment rental, guest speakers, marketing, and security.
However, investigators found that the funds were diverted. A total of R550,000 was paid to Unscripted Communication, whose director is Sefara, while R900,000 was transferred to Black Dungaree, owned by Daniel Matome Malatjie. The latter amount was allegedly used to purchase property in Bassonia Rock Extension, Johannesburg.
As a result, Khutso Daniel Makwela, director of Todi Media Development Foundation NPC, admitted to the misuse of funds, signed an Acknowledgement of Debt (AOD), and repaid the full R1.5 million on 30 March 2026.
In a separate case, the NLC granted R1.71 million to Zibsiflo NPC for women’s soccer clinics in the Free State, covering transport, accommodation, facilitators, and publicity.
The SIU found that R1.36 million from this grant was paid to Black Dungaree, while an additional R200,000 was paid to Charles Malatji. Approximately R900,000 was again used to acquire property in Bassonia, registered under Matlala Martha Malatji and Ngwako Moses Malatji.
Makwela, also linked to Zibsiflo NPC, admitted to the misuse of these funds, signed an AOD, and repaid the full R1.71 million.
Arena Holdings confirmed it has engaged directly with Sefara regarding the allegations.
“Arena wishes to place on record that it 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,” said Nwabisa Makunga.
She added that the company has resolved to allow Sefara time and space to respond to the allegations and clear his name, while an independent investigator will be appointed to conduct a comprehensive review.
“The findings of this independent process will guide the company’s decisions going forward,” Makunga said.
Pending the outcome of the investigation, Sefara has been placed on special leave. Deputy Editor Mike Siluma will serve as Acting Editor of the Sunday Times with immediate effect.