SIU freezes Arthur Mafokate’s assets in connection with an NLC fraud conspiracy

The Special Investigating Unit (SIU) has blocked a luxury home worth R7.5 million belonging to Kwaito legend Arthur Mafokate in connection with a multimillion-rand National Lotteries Commission (NLC) fraud scam.

In December 2022, the Gauteng High Court in Pretoria issued an order to the Assets Forfeiture Unit and the Special Investigations Unit to freeze three luxury residences, a plot, and a section of a farm in connection with the theft of lottery grant funds intended for community development projects.

SIU FREEZES ARTHUR MAFOKATE’S PROPERTY
According to the SIU, its investigations into the National Lotteries Commission (NLC) have shown that five non-profit organizations (NPO) in South Africa got roughly R56,3 million in grant funding for community development initiatives.

Taung Cultural Music and Arts Expo, South African Art and Development Association (SAADA), Dinosys, Matieni Community Centre, and Zibsicraft (Pty) Ltd. are the non-profit organizations.

In April 2013, SAADA, of which Mafokate is the only director, appealed for grant funds to assist unemployed youngsters in rural and impoverished areas of the country to improve their abilities in music, business video, film production, dance, and the general business of radio in South Africa.

Upon receiving the monies, a R7.5 million luxury home was purchased in Midrand, Gauteng, and it appears that Mafokate did not use the funds for the intended purpose.

Arthur Mafokate represents SAADA (Musician and director of SAADA)
Luxury property in Midrand is protected pic.twitter.com/rIU7sXJUQU

— SIU (Special Investigative Unit) (@RSASIU) 13 January 2023
Other Businesses Involved in the NLC Fraud Scheme
Dinosys submitted a grant request to the NLC to assist with social hygiene in the Eastern Cape.

Matieni Community Centre submitted a grant application in Mpumalanga Province for home-based care.

Zibsicraft submitted a grant application for Northern Cape community development.

Taung Cultural Music and Arts Expo submitted a grant application to the NLC in order to construct a museum and library in Kuruman, Northern Cape.

The SIU stated that its investigations found that the nonprofits financed the acquisition of the preservation assets with grant financing from the NLC.

The SIU stated on Friday, January 13 that the properties comprise proceeds from illegal acts, therefore the application for a preservation order until the ultimate determination of the case for final forfeiture.