No bidders for Terry Pheto's house allegedly built with lottery funds

No bidders came forward for the house that was owned by actress Moitheri “Terry” Pheto with an opening bid of R4m on Thursday.

The three-storey, triple-bedroom house did not attract any buyers despite 22 participants logging in for the online auction. There were no bidders on the property, with only officials from the Special Investigating Unit at the house.

The house was allegedly built with funds siphoned from the National Lotteries Commission (NLC). This was announced late last year after a preservation order was granted by the high court.

According to a levy bill TimesLIVE has seen, the Tsotsi star stopped paying her levies, rates and taxes in the past three months.

The property is sold voetstoots with a property rates bill of R4,972 and R28,839 in levies owed. The municipal valuation is R5.2m.

Situated in an enclosed complex, it has two spacious bathrooms and a large rooftop garden with an entertainment area with double garages.

The money that funded the property was meant for the rollout of a public campaign on safe circumcision.

“On 18 May 2017, Zibsimode NPC applied for grant funding for the rollout of a public campaign and culturally sensitive medical intervention projects aimed at achieving traditional circumcision practice. According to the application, the applicant is Mulala Tlhabyane in his capacity as the chairperson for Zibsimode,” said the SIU.

Within a week the NLC’s adjustment committee approved the application and granted funding of R20.2m. The NLC paid R16.2m into an account which previously had a credit of only R500.

Tlhabyane then transferred R3m of the grant funding to a law firm that was instructed by the construction company for the agreement.

“One of the projects undertaken by the construction company was to purchase land valued at R1.2m and develop it into residential estates in Bryanston. The company was approached by Pheto with a request to purchase a property.

“The law firm was instructed by the construction company to prepare the building agreement with a contract value of R3.7m and the land sale agreement with a contract value of R1.5m. The total purchase price for the property amount of R5m,” said the SIU.

It was a cash purchase.

After the preservation order was granted, Pheto’s legal representatives contacted the SIU and the Asset Forfeiture Unit indicating that they would not contest the preservation order granted by the high court.

Last year Pheto issued a statement denying having had any fraudulent involvement with the lotteries commission.

TimesLIVE

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