The Cape Navigator

PRETORIA – In a major legal setback, renowned South African musician Arthur Mafokate has lost his court battle to have his luxury Midrand guest house released from a preservation order. The Pretoria High Court dismissed Mafokate’s application, citing allegations of his involvement in a National Lotteries Commission (NLC) fraud and corruption scandal.

The preservation order was imposed on Mafokate’s property following investigations into the South African Arts and Development Organisation (SAADA), where Mafokate served as a director. Lumka Mahanjana, the National Prosecuting Authority Gauteng regional spokesperson, disclosed that SAADA received R9.3 million from the NLC to empower unemployed youth in poor and rural areas with skills in music, business video, film production, dance, and radio business.

However, Mahanjana revealed that only R1.8 million was utilized for the intended project, while the rest of the funds were allegedly used to purchase Mafokate’s luxury guest house. In court, Mafokate argued that he was entitled to the remaining R7.5 million, asserting that his businesses delivered the required services. Nevertheless, the NPA contended that only R1.8 million worth of services were rendered, and the remainder was unlawfully used for property acquisition.

“The court agreed with the NPA’s argument that the funds used to purchase the guest house were stolen from the NLC, as they were not utilized for the allocated project,” Mahanjana stated. The court also found that Mafokate failed to provide a reasonable explanation for how he could afford the guest house without NLC funds.

The dismissal of Mafokate’s application came with costs, with the court emphasizing that SAADA was obligated to adhere to the terms and conditions of the NLC grant. The court further ruled that SAADA should have returned any unused funds to the NLC and should not have transferred its obligations to another organization.

The NPA’s Asset Forfeiture Unit is expected to proceed with final forfeiture, and if successful, the luxury property will be auctioned, with the proceeds returning to the NLC. Last year, the Special Investigating Unit (SIU) and the Asset Forfeiture Unit obtained an order to freeze at least five properties, including Mafokate’s Midrand home, in connection to the ongoing investigation.

This development underscores the increasing scrutiny on misuse of funds within the National Lotteries Commission and serves as a reminder of the legal consequences for those implicated in such scandals.

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