Arthur’s property among 5 seized by SIU in Lotteries fraud

JOHANNESBURG – The National Prosecuting Authority’s Assets Forfeiture Unit and the Special Investigating Unit (SIU) obtained a preservation order to freeze five properties worth millions of rands linked to the unit’s ongoing probe into fraud at the National Lotteries Commission.

Last month, the Pretoria High Court granted a preservation order to freeze three luxury properties including a plot, and a portion of a farm, that is linked to the siphoning of Lotteries grant funding meant for community development projects.

In a statement released on Friday, the SIU said it found that five non-profit organisations (NGOs) received grant funding of about R56.3 million for projects.

The unit revealed that the organisations used the funding to buy luxury properties located in Midrand, Pretoria, Rustenburg, and Cape Town.

In court papers seen by journalists, the named NGOs include the South African Art and Development Association, which is linked to local musician Arthur Mafokate.

Authorities had been seeking to freeze assets linked to the Lotteries body since 2020 when President Cyril Ramaphosa authorised a probe into allegations of fraud and corruption.

“The NPOs are Taung Cultural Music and Arts Expo, South African Art and Development Association (SAADA), Dinosys, Matieni Community Centre, and Zibsicraft (Pty) Ltd. The SIU investigations revealed that the acquisition of the preserved properties was funded by the NPOs with money they had received, under the auspices of grant funding, from the NLC. The properties, therefore, constitute proceeds of unlawful activities hence the application for a preservation order pending the final determination of the application for final forfeiture,” said SIU spokesperson Kaizer Kganyago.

Last year, internationally acclaimed actress Terry Pheto who starred in the Oscar-winning feature film, Tsotsi was among several people under investigation following a multi-million-rand fraud scheme, which allegedly saw them obtaining properties through money fraudulent acquired from the Lotteries Commission.