Arthur Mafokate's property among those frozen over fraud at the National Lotteries Commission

The Special Investigating Unit (SIU) has obtained a preservation order to freeze a plot, a farm and three luxury properties valued at R53m, one of which belongs to music legend Arthur Mafokate.

The properties are linked to fraud and corruption at the National Lotteries Commission (NLC).

SIU spokesperson Kaizer Kganyago said the National Prosecuting Authority's Asset Forfeiture Unit obtained a preservation order from the Pretoria High Court to freeze three luxury properties, a plot and a portion of a farm that are linked to the siphoning of lotteries grant funding meant for community development projects.

The properties include Mafokate's luxury property in Midrand, Johannesburg, with a sale value of R7.5m as well as former NLC legal representative Lesley Ramulifho, whose property is in Cape Town in the Western Cape.

Former Lotto boss Alfred Nevhutanda's plot in Pretoria, former NLC board member William Huma's farm in Rustenburg and NLC legal division head Tsietsi Maselwa's luxury property in Pretoria will also be frozen.

“The SIU investigations in the affairs of the National Lotteries Commission have revealed that five non-profit organisations (NPO) received grant funding of approximately R56.3m for community development projects in South Africa.

“The NPOs are Taung Culural 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,” Kganyago said.

SAADA, linked to Mafokate, applied for grant funding to assist unemployed youth in the poor and rural areas of the country, to impact skills in music, business video, film production, dance and overall business of radio in SA.

The SUI's investigation shows that SAADA applied for grant funding to the tune of R18m back in 2013 but was approved for just over R9m, which was paid over two tranches from 2014 to 2015.

In October 2014, SAADA received its first tranche of R4.65m from the NLC and a second tranche of the same amount followed in 2015.

SAADA made five transfers to Roadshow Marketing, a registered company where Mafokate is the sole director.

In November 2015, Roadshow Marketing transferred a R4.5m home loan account and just two months later, 999 Music, owned by Mafokate, signed a purchase order of the R7.7m property in Midrand.

nkosin@sowetan.co.za