The Special Investigating Unit (SIU) has secured the full recovery of R3.2 million in misappropriated funds linked to the National Lotteries Commission (NLC), uncovering what it describes as a pattern of abuse involving public money meant for community upliftment.
The SIU confirmed that it recovered R1.5 million from Todi Media Development Foundation NPC and R1.71 million from Zibsiflo NPC — both entities found to have unduly benefited from NLC grants.
The investigations, conducted under Proclamation R.32 of 2020, revealed that funds allocated for development projects were diverted into private accounts and used for personal enrichment, including property purchases.
In the case of Todi Media Development Foundation, a R1.5 million grant awarded in 2018 for a media development project — covering expenses such as accommodation, transport, equipment rental and training — was instead redirected to private companies.
Unscripted Communication, directed by Makhudu Sefara, received R550,000, while Black Dungaree, owned by Daniel Matome Malatjie, received R900,000. The SIU found that a significant portion of these funds was used to purchase property in Bassonia Rock Extension, Johannesburg.
Director Khutso Daniel Makwela admitted to the misuse of funds, signed an Acknowledgement of Debt, and repaid the full R1.5 million on 30 March 2026.
A similar pattern emerged in the Zibsiflo NPC case, which received R1.71 million for women’s soccer clinics in the Free State. The SIU found that the project was never implemented.
Instead, Black Dungaree received R1.36 million, while Charles Malatji received R200,000. Approximately R900,000 was allegedly used to acquire property in Bassonia under the names of Matlala Martha Malatji and Ngwako Moses Malatji.
Makwela again admitted wrongdoing, signed an Acknowledgement of Debt, and repaid the full R1.71 million.
The SIU emphasised that while the funds have been recovered, repayment does not absolve individuals from criminal liability. In line with the Special Investigating Units and Special Tribunals Act 74 of 1996, any evidence of criminal conduct will be referred to the National Prosecuting Authority (NPA) for further action.
The SIU is also empowered to institute civil proceedings in the High Court or Special Tribunal to recover losses and address any wrongdoing uncovered during its investigations.
The unit says the outcome reinforces its commitment to safeguarding public funds and ensuring accountability where resources meant to empower communities are abused.