The latest investigations by the Special Investigating Unit shows that alleged corruption permeates all layers of society, even the people who are meant to be our national pride but who now find themselves on the wrong side of the law.
A report tabled in parliament’s trade and industry portfolio committee detailed how star of Oscar-winning film Tsotsi, actress Moitheri “Terry” Pheto, her sister Dimakatso and her friend, fashion designer Thula Sindi, are entangled in controversy involving the alleged misappropriation of a R5m grant intended for a poultry farm from the National Lotteries Commission (NLC).
The report showed that of the R5m granted to a company called Zibsibix by the NLC in December 2018, Moitheri Pheto’s two companies and her personal bank account received R3.2m.
The case has been referred to the civil litigation unit for recovery and criminal referrals are being prepared for the National Prosecuting Authority (NPA).
The report also implicated a foundation belonging to another Tsotsi actor Presley Chweneyagae for alleged misuse of NLC funding amounting to R15m, which was meant for community upliftment projects.
This is not the first time Pheto has been implicated in shenanigans involving the NLC. In March last year her Bryanston house, which was allegedly built with funds siphoned from the NLC, was sold on auction for R3.9m
The report stated that in 2016 a nonprofit organisation, the Southern African Youth Movement (SAYM), made an application to the NLC on behalf of the Chweneyagae Foundation. The main purpose of the application was to take over a future musical documentary and poetry arts programme.
The investigation uncovered the likelihood that the foundation was used to launder and distribute the R15m grant to different companies of officials at the NLC.
This is not the first time Pheto has been implicated in shenanigans involving the NLC.
In March last year her Bryanston house, which was allegedly built with funds siphoned from the NLC, was sold on auction for R3.9m. The money that funded the property was meant for the rollout of a public campaign on safe circumcision.
Another revered artist, “King of Kwaito” Arthur Mafokate, also found himself in conflict with the law concerning the siphoning of funds from the NLC.
Investigations revealed that the South African Arts and Development Organisation, a nonprofit organisation (NPO) of which Mafokate was the sole director, was granted R9.3m to help unemployed youth in the rural areas to impart skills in music, video, film production, dance and radio. Instead, the NPO used only R1.8m of the funds on the project and the remaining R7.5m to purchase Mafokate’s guest house known as La Villa Rosa in Midrand.
In December 2022, the NPA’s Asset Forfeiture Unit obtained an order to preserve the guest house.
Two weeks ago, the Pretoria high court dismissed an application by Mafokate to have the property released from a preservation order, paving the way for the AFU to enrol the matter for the final forfeiture of the guest house. Should final forfeiture be successful, it will pave the way for the house to be sold to and the proceeds returned to NLC.
While it is too early to say whether Terry Pheto and Chweneyagae are guilty of wrongdoing after the release of the report, it is worrying that their names are associated with the siphoning of the funds meant for worthy causes.
It is now hoped that apart from civil procedures designed to return ill-gotten funds to the NLC, the state should do more to lay criminal charges against those involved.
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