The Special Investigating Unit (SIU) findings into the misuse of National Lotteries Commission (NLC) funds have drawn a response from media executive Makhudu Sefara, who has denied any wrongdoing and accused investigators of misrepresenting the facts.

Sefara, the editor of the Sunday Times, was placed on “special leave” on Tuesday, hours after it was revealed that a company of which he was the sole director was linked to a lottery-funded project under investigation by the SIU.

According to SIU, his company, Unscripted Communication, received four payments from Todi Media Foundation totalling R550,000 between 21 November and 12 December 2018 for a lottery-funded “media” project.

A R1.5 million grant paid to Todi was meant to cover “journalists’ accommodation, car hire, catering, equipment rental, guest speakers, marketing, security, etc.,” according to the SIU.

However, the unit said the funds were not used for their intended purpose. Instead, R550,000 was paid to Sefara’s company, while a further R900,000 was paid to Black Danagaree, owned by Daniel Malatji, the father of former Sunday World acting editor Ngwako Malatji.

The money was then transferred to attorneys handling the sale of a house in Bassonia Rock Extension, which was registered in the name of Ngwako Malatji and his wife, Martha Malatji, who is one of Todi’s three directors.

The SIU says it has recovered R3.2 million in NLC funds that were allegedly diverted into private use, specifically towards property purchases in Bassonia belonging to Ngwako Malatji and his wife.

On 22 April 2026, a story titled “Lekompo artist ‘killers’ granted bail” written by Ngwako Malatji was published in the Daily Sun, which is under Media24.

Media24 CEO Raj Lalbahadur said the company respects the privacy of its employees and contracted freelancers and does not share personal details unrelated to their work.

“However, we treat transgressions – alleged or real – of the Media24 Code of Business Ethics and Conduct, and the regulations of the Press Council very seriously. Media24 does not hesitate to investigate any alleged or real transgressions of either. We will also give our full cooperation to the relevant authorities when called upon,” he said.

African Times contacted Ngwako Malatji for comment, but at the time of publication, none had been received.

The SIU said it recovered R3.2 million from beneficiaries who unduly benefited from lottery funding allocated to non-profit organisations Todi Media Development Foundation NPC and Zibsiflo NPC. The funds were intended for community upliftment projects, including media development and women’s soccer clinics, but were allegedly diverted for private use.

According to SIU spokesperson Selby Makgotho, the investigation uncovered a pattern in which grants were channelled through a network of entities and individuals, with portions of the funds used for property purchases.

In the case of Todi Media, the SIU found that R1.5 million granted in 2018 for a media project was not used for its intended purpose. Of that amount, R550,000 was paid to Unscripted Communication, a company directed by Sefara, while R900,000 was transferred to another entity and later used to acquire property in Bassonia, Johannesburg.

A separate grant of R1.71 million awarded to Zibsiflo NPC for women’s soccer clinics in the Free State was also found to have been misused. The SIU said the project was never implemented and that funds were diverted into private accounts and property transactions.

Both entities have since repaid the full amounts after their director, Khutso Daniel Makwela, signed acknowledgements of debt.

In a statement posted on X, Sefara said the SIU’s conclusions were incorrect and that his company had been paid for legitimate services rendered.

“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,” he said.

Sefara said he facilitated the event and argued that receiving payment as a service provider does not constitute wrongdoing.

“If my company, a service provider, is guilty of receiving funds to organise an event, this must surely also mean the hotel, the airline, catering firms, bus companies that received funds to accommodate, feed and transport these conference attendees are equally liable,” he said.

He also criticised the SIU for not contacting him before releasing its findings, stating that the unit had “got it completely wrong” and that he reserved his rights.

The SIU has maintained that repayment of the funds does not preclude further action. It said any evidence of criminal conduct identified during the investigation will be referred to the National Prosecuting Authority (NPA) for possible prosecution.

The findings have prompted responses from political parties and media bodies.

The Economic Freedom Fighters (EFF) said the report confirms longstanding concerns about corruption linked to lottery funding and raised questions about the relationship between media figures and state resources. Party spokesperson Sinawo Thambo said the revelations call into question the credibility of institutions that position themselves as defenders of accountability.

The Democratic Alliance (DA) has called for a transparent investigation into the matter. DA spokesperson Toby Chance said the independent probe initiated by Arena Holdings must be conducted openly to maintain public confidence in the media.

Following the SIU statement, it was initially reported that the South African National Editors’ Forum (SANEF) would not take action. However, on Tuesday night, SANEF confirmed that Sefara had stepped down as its chairperson pending the outcome of an investigation. The decision was taken at an urgent management committee meeting, where Sefara denied the allegations but offered to step aside.

In an interview with Newzroom Afrika on Wednesday, SANEF executive director Reggy Moalusi said an independent law firm would be appointed to investigate Sefara following the SIU report. He said the organisation wants an independent body to probe the matter.

Arena Holdings, publisher of the Sunday Times, has also placed Sefara on special leave. Managing director Nwabisa Makunga said the company will appoint an independent investigator to review the matter and determine the appropriate course of action.

Deputy editor Mike Siluma has been appointed acting editor of the Sunday Times with immediate effect.

The SIU said it remains authorised to institute civil proceedings to recover losses and to refer matters for criminal prosecution where applicable.

The investigation forms part of a broader probe into maladministration at the NLC, initiated under Proclamation R.32 of 2020, focusing on the allocation and use of lottery funding intended for public benefit.

As the process continues, the outcome of the SIU’s referrals and internal investigations by media institutions is expected to determine the next steps.