"Tsotsi" Star and Acclaimed Designer Caught in R5M Lottery Fraud Scandal

A report unveiling the investigation results by the Special Investigating Unit (SIU) into allegations of corruption at the National Lotteries Commission (NLC) has implicated prominent figures including actress Terry Pheto, who gained fame for her role in the Oscar-winning film "Tsotsi," her sister Dimakatso, and notable fashion designer Thula Sindi.

The controversy unfolds with the revelation that a R5 million grant allocated for the establishment of a poultry farm by the NLC was allegedly misused. The grant, awarded to a company named Zibsibix in December 2018, was supposedly distributed to various accounts linked to Pheto and her associates.

The SIU's report, which was presented before the parliament's trade & industry portfolio committee, indicates that Sindi's Black Planet Trading received R140,000 while Pheto's two businesses, along with her personal account, accumulated an astonishing R3.2 million. Dimakatso Pheto was also mentioned in the report, seemingly having received R124,000 and an additional R315,000.

Adding to the complexity of the scandal, the investigation unearthed that Prof Alfred Nevhutanda, the former NLC board chair, signed an offer to purchase a farm in the Vaal area for the benefit of Dimakatso Pheto, which cost R850,000. This acquisition was traced back to emails on Mimecast, a cloud-based email management system. The farm's supplies and a vehicle, amounting to R209,000, were also part of the alleged misapplication of the granted funds.

This case has already made significant strides, as it has been directed to the civil litigation unit with the intention of recouping the funds. Furthermore, the evidence is being structured for potential criminal charges, and referrals are in the process of being submitted to the National Prosecuting Authority.

Highlighting the scale of the purported fraudulent activities, the SIU discovered that a substantial portion of a R20.2 million grant—R3 million, to be precise—earmarked for a safe circumcision campaign was diverted to construct a lavish property in Bryanston. Moitheri's three-storey, three-bedroom residence, which came under the hammer just last year, is alleged to have been funded by the diverted lottery grant.

The revelations made in SIU's meticulous report showcase a web of financial manipulations and underscore the pressing issue of corruption and mismanagement within the NLC—an organization that, by mandate, is supposed to channel funds towards community and development projects across South Africa.

As the affected parties face mounting scrutiny and legal hazards, the situation underscores the need for transparency and accountability in the management of public funds. The fate of the implicated individuals now hangs in the balance as the South African justice system grapples with this high-profile case, which has not only tarnished reputations but also betrayed public trust.