Arthur Mafokate

Kwaito star Arthur Mafokate is alleged to be involved in the misappropriation of R56m in community development funds from the National Lotteries Commission.

“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. 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. 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.

A preservation order has been obtained to freeze luxury properties, a plot and a portion of a farm linked to the alleged siphoning of lotteries grant funds ...

The National Prosecuting Authority’s Asset Forfeiture Unit (AFU) and the Special Investigating Unit (SIU) have obtained a preservation order from the high court in Pretoria to freeze three luxury properties, a plot and a portion of a farm linked to the alleged siphoning of lotteries grant funding meant for community development projects. A preservation order has been obtained to freeze luxury properties, a plot and a portion of a farm linked to the alleged siphoning of lotteries grant funds meant for community development projects Musician and producer Arthur Mafokate and others are alleged to be tangled up in the misappropriation of R56m in community development funds from the National Lotteries Commission (NLC).

In a statement released on Friday, the SIU said it found that five NGOs received grant funding of about R56.3million for projects.

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," said SIU spokesperson Kaizer Kganyago. 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. In a statement released on Friday, the SIU said it found that five non-profit organisations (NGOs) received grant funding of about R56.3-million for projects.

The Gauteng High Court has granted an order to the National Prosecuting Authority's (NPA) Asset Forfeiture Unit (AFU) and the Special Investigating Unit ...

Therefore the conditions for the freezing is very simple- they must not interact with those properties- these were immovable properties, in terms of selling them, or giving them as donations, or anything because we have now evidence that says that they used the lottery money to buy all of those properties.” This is part of an ongoing investigation into fraud at the National Lotteries Commission. “How the modus operandi was, was very simple- you create an NPO, apply for money, the money is then taken to other bank accounts- and ultimately used to buy these properties that we are now freezing today.