The SIU has flagged payments to companies linked to media practitioners in connection with an R3.2 million National Lotteries Commission project.
Image: File
One of South Africa’s most senior newsroom figures has stepped aside after being drawn into allegations in a corruption probe involving National Lottery funding.
Makhudu Sefara, editor of the Sunday Times and chairperson of the South African National Editors’ Forum (Sanef), has relinquished his roles following findings by the Special Investigating Unit (SIU). The unit alleges that R550,000 in Lottery-linked funds, earmarked for community media development, was channeled to a private company linked to Sefara.
In a statement issued on Tuesday, the SIU confirmed it had recovered R3.2 million tied to what it described as schemes “disguised as developmental projects.”
Central to the case is a 2018 grant of R1.5 million awarded by the National Lotteries Commission to the Todi Media Development Foundation.
According to the SIU, the funding was intended to support a development journalism initiative covering operational costs such as accommodation, transport, equipment and training. Instead, investigators say a portion of the funds was redirected.
“The SIU found that money was diverted to Unscripted Communication, whose director is Makhudu Sefara, which received R550,000,” the unit said.
The director of Todi Media, Khutso Daniel Makwela, has admitted to the misuse of funds and repaid the full R1.5 million by March 30, according to the SIU.
The SIU has named a few individuals in connection with the flow of the funds
Image: AMC Graphics/Independent Newspapers
Sefara has rejected any suggestion of wrongdoing, insisting the payment to his company, Unscripted Communication, was for legitimate services linked to a conference that took place.
“In 2018, I ran a private firm, Unscripted Communication and therefore not attached to any other institution, private or public. To be clear, I was not even a journalist. I was approached by the head of Todi NPO, Daniel Makwela and requested to put together a community media training event. The event was held on 11 December 2018 at Birchwood Hotel, near OR Tambo Airport. Over 50 members of the community media sector (for both print and radio) attended the event. The guests were booked at Birchwood hotel,” he said.
“So, to claim that some funds were 'diverted' into private pockets to create an impression of impropriety on my part is not just false and therefore harmful, but a poor strategy to use my name to generate undue publicity,” he said in a written response. “There could be no doubt on whether or not the event took place.”
He described the SIU’s conclusions as 'flawed and overreaching'.
“If my company, a service provider, is guilty of receiving funds to organise an event, then hotels, airlines and catering firms that were paid must also be liable. It’s preposterous,” he said. “I deny any impropriety.”
As part of his defence, Sefara produced material relating to a Development Journalism Conference held in December 2018.
Makhudu Sefara has presented this as proof of the work carried out by his company
Image: Facebook
The controversy has quickly spilt into the political arena, with the EFF using the findings to reinforce its long-running critique of the media.
“These revelations confirm what the EFF has consistently maintained for years: that sections of the South African media are deeply compromised because they are materially linked to political patronage networks and corrupt state-connected funding streams. The media in South Africa has often acted as a protection racket for the establishment while masquerading as the moral conscience of the nation,” the party said in a statement.
It singled out the Sunday Times, arguing that the allegations strike at the heart of its credibility as an anti-corruption watchdog.
“The Sunday Times, in particular, has over many years positioned itself as a crusader against corruption, frequently using its platform to target political opponents of the ruling elite. The revelation that its editor is linked to diverted Lottery funds fundamentally compromises the credibility of the publication and the broader media fraternity.”
Arena Holdings, publisher of the Sunday Times, confirmed that Sefara would take special leave while an independent investigation is conducted. Veteran journalist Mike Siluma has been appointed acting editor.
The EFF called for full transparency from Arena Holdings. It said the independent investigation announced by the company must not be a whitewash and all findings must be made public.
The party further called upon Sanef to explain how an individual with such 'deep-seated links to questionable NLC funding was allowed to lead an organisation tasked with upholding media ethics'.
“Repayment of the funds, as mentioned by the SIU, does not equate to justice. The EFF calls on the National Prosecuting Authority (NPA) to act swiftly on the SIU referrals and ensure that everyone involved in siphoning money meant for the poor faces the full might of the law.
"The corruption at the NLC was a grand-scale betrayal of orphanages, sports clubs, and the most vulnerable in our society. That a senior editor is now ensnared in this web of ‘disguised developmental projects’ is a shame that cannot be ignored,” the party said.
The EFF said it would continue to monitor this case closely to ensure that "journalistic integrity is not used as a shield to hide criminal activity.”
SANEF also accepted Sefara’s decision to step aside as chairperson, noting that he had denied the allegations but opted to temporarily vacate his position while responding to them.
karabo.ngoepe@inl.co.za