South African lottery grant probe reaches media sector as Sunday Times editor steps aside

The SIU’s investigation into National Lotteries Commission grants has drawn South Africa’s media industry into the spotlight after funds from a lottery-backed media project were linked to a company previously directed by Makhudu Sefara.

South Africa’s long-running investigation into the National Lotteries Commission has taken a new turn after the Special Investigating Unit said that funds from a 2018 lottery-backed media project were paid to Unscripted Communication, a company directed at the time by Makhudu Sefara, now editor of the Sunday Times. The case has pushed the governance of lottery grants beyond the usual debate over public funding and into questions of media ethics, accountability and institutional independence.

According to the SIU, Todi Media Development Foundation received a R1.5 million grant from the NLC in 2018 for a media-related project covering items such as journalists’ accommodation, car hire, catering, equipment rental, guest speakers and marketing. Investigators allege that the funds were not used for their intended purpose, with R550,000 paid to Unscripted Communication and another R900,000 paid to a company linked to Daniel Matome Malatjie.

Sefara has denied wrongdoing. He said the payment related to legitimate services provided for a training workshop attended by more than 50 print and radio journalists near OR Tambo International Airport in Johannesburg. He also said that at the time he was operating a private firm and was not attached to any media institution or public body.

The allegations quickly triggered action in the media sector. Arena Holdings, the owner of the Sunday Times, placed Sefara on special leave and said an independent investigator would review the relevant facts and circumstances. Mike Siluma, deputy editor of the Sunday Times, has been appointed acting editor while the process continues.

Sefara also stepped aside as chairperson of the South African National Editors’ Forum. SANEF said its management committee accepted his decision after an urgent meeting on April 28, noting that he denied the allegations and had been given an opportunity to present his version of events. The forum appointed deputy chairperson Tshamano Makhadi as acting chairperson and said it would appoint an independent legal team to assess the evidence.

The broader SIU investigation into the NLC dates back to Proclamation R.32 of 2020, which authorised the unit to investigate alleged maladministration and losses linked to the National Lotteries Commission between January 2014 and November 2020. The SIU said it has recovered R3.2 million linked to two NLC-funded projects, including the full repayment of the Todi Media grant.

For South Africa’s lottery sector, the case is another reminder that grant distribution remains one of the most sensitive areas of public gambling-related oversight. For the media industry, it raises a separate reputational issue: how news organisations and editorial bodies manage conflicts of interest, public trust and investigations involving senior editors. The final impact will depend on the outcome of the independent reviews, but the case is likely to increase pressure for stronger transparency around both lottery-funded projects and media-sector governance.