JOHANNESBURG – The Special Investigations Unit (SIU) has refuted allegations that it has cleared suspended Sunday Times editor-in-chief Makudu Sephara of wrongdoing related to possible misuse of funds raised from the National Lottery Commission (NLC).
Mr. Sephara has denied any wrongdoing and has previously said the funds were used for the original purpose for which his company, Unscripted Communications, was contracted with Todi Media: to host events at the Birchwood Hotel.
Related: Sunday Times suspends editor-in-chief Makudu Sephara over Lottery funds fraud charges – The Bull Rushes
On Thursday 2 July 2026, the South African Editors Forum (SANEF) announced that it had concluded its investigation into the allegations against former president Sephara.
Sephara denies any wrongdoing and has previously said the funds were used for their original purpose, which was to host an event at the Birchwood Hotel.
“After considering all available evidence, including direct communications from the SIU to Sephala’s lawyers, the investigation found that Sephala did not violate SANEF’s current constitution or code of conduct,” the Editors Forum said.
“This comes after SIU Acting Director Leonard Lekgetoe also confirmed to Sephala’s lawyers in a letter dated May 21, 2026, that neither Sephala nor the unscripted communications were the subject of an SIU investigation, and that no findings had been made against either.”
However, today, Friday, July 3, 2026, the SIU refuted SANEF's position, saying that the Editors' Forum had “misled the public and undermined the integrity of the work of the Investigative Division.”
In a post to
“Without providing the public with the content or context of the letter sent by Sephara's legal representative, SANEF's media statement gives the impression that the SIU has exonerated Sephara as a beneficiary of NLC funds,” the SIU said.
“This does not reflect the letter sent to his attorney.”
The SIU said Daniel Makwela, director of Todi Media, which was contracted to Sephala's Unscripted Communications company, failed to provide evidence of how the R1.5-million NLC grant was spent.
In return, he offered to repay R1.1 million.
The SIU rejected this offer and required that the full amount of the funds be accounted for in affidavits and supporting documents before considering a settlement.
The SIU's findings revealed payments of R900,000 to Black Dungaree and R550,000 to Unscripted Communication.
The SIU confirmed that it did not make any claims against Unscripted Communication and that liability rested solely with Todi Media, who refunded the full grant.
However, the SIU did not say that Sephara did not benefit from the funds, as neither Todi Media nor Makwela could provide evidence.
The SIU stressed that the onus is on Todi Media to prove how the funds were spent. Instead, Todi Media opted for full repayment and final settlement.
