Johannesburg - The Special Investigating Unit (SIU) has revealed that the house of the renowned award-winning actress Moitheri "Terry" Pheto that was set for auction failed to acquire a buyer on the first day of its auction.
Last year, the SIU reported that the house was built with funds linked to the siphoning off of National Lottery Commission (NLC) grant funding.
The SIU swooped on multi-million-rand properties, a luxury vehicle, and two seafood restaurants owned by Pheto, former Lottery boss Lesley Ramulifho, and a group of others.
Despite an unsuccessful first day of auction, SIU spokesperson Kaizer Kganyago says they would go ahead with the auction of the house of the “Tsotsi” star.
He says the unit was making an effort to recoup the NLC money that was illegally used on the property.
The auctioning of Pheto’s home was a continuation of the implementation of the SIU investigation outcomes and consequence management to recover assets and financial losses suffered by state institutions and/or to prevent further losses.
The auction follows a preservation order granted by the High Court of South Africa, Gauteng Division, Pretoria, to the Asset Forfeiture Unit (AFU) and the Special Investigating Unit (SIU) on November 4, 2022, to freeze Pheto’s Bryanston home.
"The SIU investigations have found that the money used for the purchase of the land and construction of the home came from non-profit organisations that received NLC funding meant for the roll-out of a public campaign and culturally sensitive medical intervention projects aimed at achieving traditional circumcision practice."
According to the SIU’s investigation timeline, posted on social media, on May 18, 2017, Zibsimode NPC applied for grant funding for the roll-out of a public campaign and culturally sensitive medical intervention projects aimed at achieving traditional circumcision practice. The applicant was Mulala Tlhabyane in his capacity as Zibsimode chairperson.
The application was approved for R20 264 091 worth of funding by the NLC’s Adjudication Committee on May 27, 2017, and the NLC and Zibsimode signed a grant agreement for R20 264 091 on May 26, 2017.
The unit said on May 30, 2017, the NLC paid R16 211 272 into Zibsimode’s bank account and that, prior to receiving the funds, the account had a credit balance of only R500.
Zibsimode subsequently transferred R3 million of the grant funding on May 31, 2017, to a law firm that was mandated by a construction and property development company to attend to all its contractual and litigious matters.
The SIU added that on the same day, one of the projects undertaken by the construction company was to purchase land valued at R1 250 000 and develop it into residential estates in Bryanston, and it approached Pheto with a request to purchase a property.
"The law firm was instructed by the construction company to prepare the building agreement with a contract value of R3 750 000 and the land sale agreement with a contract value of R1 250 000. The total purchase for the property amounts to R5 million," the SIU said.
"Pheto advised them that R3 million would be deposited into their trust account as a deposit towards the R5 million."
On September 22, 2017, the Bryanston property transfer was registered at the Pretoria Deeds Office.
"The trust deposit plus accrued interest was paid to the construction company on March 2, 2018, pursuant to the registration of the transfer of ownership of the property from the construction company to Pheto. No mortgage was registered on the property as it was a cash purchase," the SIU said.
After the preservation order was granted, Pheto’s legal representatives contacted the SIU and the AFU, indicating that they wouldn’t contest the preservation order granted by the High Court.
"The SIU was in terms of Proclamation R32 of 2020, authorised by President Cyril Ramaphosa to investigate allegations of corruption and maladministration in the affairs of the NLC and the conduct of NLC officials, and to recover any financial losses suffered by the State or the NLC," the unit said.
When this news surfaced last November, Pheto issued a statement on her public platforms denying her involvement with the National Lotteries Commission fraud.
"I am dismayed to discover that I am the subject of a Special Investigation Unit probe into allegations of fraud relating to funding by the National Lotteries Commission. I deny any involvement in the alleged scheme that has been reported on.
“I also had no prior knowledge of an application to obtain a preservation order against me and have had no sight of this order," she said.
The SIU says it has been investigating the matter since 2020, as it emanates from Proclamation R-32 of 2022, and as part of its investigation, it has looked at certain NPOs that receive money.
It further revealed that it is tracing the money that Zibsimode ended up using to buy properties
The Star