Makhudu Sefara, the editor of the Sunday Times, has been suspended by Arena Holdings following his involvement in a second scandal related to the misappropriation of funds from the National Lottery.
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Sunday Times editor Makhudu Sefara has been suspended by Arena Holdings following his involvement in a second scandal involving the misappropriation of National Lottery funds.
This follows the successful recovery of R3.2 million by the Special Investigating Unit (SIU) from two businesses that were found to have unfairly benefited from the National Lotteries Commission (NLC).
This is the second lottery scandal allegedly involving Sefara - in 2023 GroundUp wrote a series of articles on the Sunday World allegedly benefitting from millions of rands of Lottery advertising and running stories to counter exposés of corruption - while Sefara was then its Editor.
The SIU in the latest developments on the NLC said it has received R1,5m that was misappropriated by Todi Media Development Foundation NPC and R1,71m unduly awarded to Zibsiflo NPC.
The SIU said the R1,5m that was granted to Todi Media in 2018 was intended for a media project that included covering journalists’ accommodation, car hire, catering, equipment rental, guest speakers, marketing, and security, but was diverted into private pockets and toward property purchases.
An amount of R550,000 was diverted to Unscripted Communication, whose director is Sefara.
The SIU said another R900,000 went to Black Dungaree (not linked to Sefara), which was used to purchase a property.
Unscripted Communication was registered in April 2018.
Sefara is also the chairperson of the SA National Editors’ Forum (SANEF).
He was appointed in 2025, replacing Nwabisa Makunga, who relinquished the position following her promotion to an executive role at Arena.
On Tuesday, Arena Holdings in a statement said it had engaged directly with Sefara regarding the allegations, Sefara denied any wrongdoing and provided the company with his account of the events in question.
The company said after considering the matter, management had resolved to afford Sefara the necessary time and space to address the allegations and to seek to clear his name.
“Arena Holdings will appoint an independent investigator to undertake a comprehensive review of all relevant facts and circumstances surrounding the matter. The findings of this independent process will guide the company’s decisions going forward.”
“Pending the conclusion of this process, Mr Sefara will take special leave,” read the statement.
Sunday Times Deputy Editor, Mike Siluma, is expected to assume the role of acting Editor with immediate effect.
On Tuesday, Sefara denied the allegations, saying the funds were used for a legitimate community media event at Birchwood Hotel, near OR Tambo Airport.
He said he had been approached by the head of Todi, Daniel Makwela, to put together a community media training event.
“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. There could be no doubt about whether or not the event took place. As CEO of a communications firm, I was entitled to pursue business which included organising community media workshops,” he said.
He said the facts are plain and available to the SIU, adding that the event took place and was attended by over 50 people.
“Pictures and videos were taken at the event. Accommodation was paid for. Flights were booked and paid for.”
The 2023 scandal gained traction following a report by GroundUp, which highlighted that Sunday World received disproportionately large amounts of lottery funding during Sefara's tenure as Editor in 2019 and 2020.
GroundUp alleged that the publication produced "propaganda pieces" in support of the NLC during this period. Sefara has previously denied these allegations, characterising the GroundUp report as a personal attack.
GroundUp in its investigation claimed that the NLC reportedly paid Sunday World approximately R24.7 million for advertisements and advertorials. This amount 'was considered massively disproportionate, accounting for roughly 46% of the NLC’s media budget in one financial year, despite the paper's relatively low circulation'.
Sefara in 2024 wrote an opinion piece in the Sunday Times responding to the allegations made by GroundUp against him:
"The approach here is to publish half-baked investigative reports and then call for an investigation. What investigative journalism is this that publishes rumour and suppositions....If Sunday World received R20mn after my departure, why am I the one answering for things that happened in my absence?"
Meanwhile, the DA said that the seriousness of these allegations warrants urgent and transparent scrutiny, stressing that 'public confidence in the media depends on accountability and adherence to the highest ethical standards'.
The party added that the independent investigation launched by Arena Holdings must be done with absolute transparency, so that all of the findings are publicly disclosed for the integrity of the free press.
manyane.manyane@inl.co.za