According to the SIU, R1.5 million was improperly awarded to Todi Media Development Foundation, while a further R1.71 million went to Zibsiflo, both non-profit entities linked to beneficiaries of the National Lotteries Commission (NLC).

The investigations place Sefara, editor of the Sunday Times and chairperson of the South African National Editors Forum (SANEF), and Malatji, former acting editor of the Sunday World, closer to the centre of transactions tied to the misuse of funds.

“Under Proclamation R.32 of 2020, the SIU was mandated to investigate maladministration in the affairs of the National Lotteries Commission,” the unit said.

Sefara was placed on “special leave” on Tuesday afternoon, just hours after it emerged that he was under investigation by the SIU.

Nwabiso Makunga, the managing director for news at Arena Holdings, the owner of the Sunday Times, said in a statement that “Sefara 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,” said Makunga.

“The findings of this independent process will guide the company’s decisions going forward. Pending the conclusion of this process, Mr Sefara will take special leave.”

Makunga added that deputy editor, Mike Siluma, will assume the role of Acting Editor of the Sunday Times with immediate effect.

The SIU described a coordinated scheme in which funds intended for community upliftment were diverted for private benefit, including the purchase of property.

In one instance, the NLC awarded Todi Media R1.5 million in 2018 for a media development project covering expenses such as accommodation, transport, catering, equipment rental and marketing.

However, investigators found that R550,000 was channelled to Unscripted Communication, a company directed by Sefara, while a further R900,000 was paid to Black Dungaree, owned by Daniel Matome Malatji.

 The latter funds were used to acquire property in Bassonia Rock Extension, Johannesburg.
“Khutso Daniel Makwela, the director of Todi Media Development Foundation NPC, admitted misuse, signed an Acknowledgement of Debt (AOD), and repaid the full R1.5 million on 30 March 2026,” the SIU said.

A separate probe into Zibsiflo revealed that the NLC allocated R1.71 million between 2019 and 2020 for women’s soccer clinics in the Free State.

Instead, R1.36 million was paid to Black Dungaree, with an additional R200,000 going to Charles Malatji.

About R900,000 of these funds was used to purchase property registered in the names of Matlala Martha Malatji and Ngwako Moses Malatji.

The SIU said the project was never implemented.

Khutso Daniel Makwela, the director of Zibsiflo NPC, admitted misuse, signed an Acknowledgement of Debt (AOD), and repaid the full R1.71 million,” the unit said.

The SIU emphasised that while funds have been recovered, this does not preclude further legal consequences.

Under the SIU and Special Tribunals Act, the unit will refer any evidence of criminal conduct to the National Prosecuting Authority (NPA) and may institute civil proceedings to recover additional losses.

“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 said.

On Tuesday night, Sefara stepped aside as chairperson of SANEF pending the outcome of an investigation.

In a statement on Tuesday, SANEF said it convened an urgent meeting at which Sefara was given an opportunity to present his version of events and denied the allegations against him.

He subsequently offered to step aside while responding to the claims.

The organisation confirmed that deputy chairperson Tshamano Makhadi has been appointed acting chairperson.

“SANEF has also resolved to appoint an independent legal team to evaluate the evidence and report back as soon as possible,” the body said.

Meanwhile, Toby Chance, the Democratic Alliance (DA) spokesperson on Trade, Industry and Competition, said the gravity of the allegations demands urgent and transparent scrutiny, warning that public confidence in the media hinges on accountability and strict adherence to ethical standards.

“Public trust in the media requires the highest ethical standards. The editor of the Sunday Times and the chairperson of SANEF occupy pivotal roles in the country’s press landscape,” Chance said.

He added that the DA has noted the independent investigation launched by Arena Holdings into the Lottery funding scandal involving Sefara, as revealed by the Special Investigating Unit (SIU).

“The probe must be conducted with absolute transparency, and its findings must be made public to safeguard the integrity of the free press,” Chance said.

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