SIU: Terry Pheto & Lottery Officials Linked to R20.56m Circumcision Fraud

The Special Investigating Unit (SIU) of South Africa has implicated actress Terry Pheto, along with former officials of the National Lotteries Commission (NLC), in a fraud and corruption scandal involving R20.56 million (approximately $1.1 million USD). The funds were allegedly misappropriated through a scheme centered around a circumcision project, according to a statement released by the SIU.

The SIU’s investigation focuses on grants awarded to Non-Profit Organisations (NPOs) purportedly for community upliftment projects. Specifically, the investigation alleges that funds earmarked for a circumcision initiative were diverted for personal gain. The SIU has obtained a preservation order from the Special Tribunal, freezing assets linked to the alleged fraud.

Terry Pheto, known for her role in the Academy Award-winning film “Tsotsi,” is alleged to have benefited from the illicit funds. A property owned by Pheto has been frozen by the Special Tribunal, as reported by GroundUp, as it was allegedly purchased with money originating from the National Lottery. The value of the property has not been publicly disclosed.

Alongside Pheto, the SIU has implicated several former high-ranking officials of the NLC. These individuals are accused of manipulating the grant application process and failing to adequately oversee the disbursement of funds. The names of these former officials have not been publicly released by the SIU at this time.

Further investigations have revealed connections to other alleged fraudulent activities involving lottery funds. Business Day reported that designer Thula Sindi was also named in a separate R5 million (approximately $265,000 USD) lottery fraud report. This report details allegations of similar irregularities in the awarding and management of grants.

News24 reports that the ongoing National Lottery investigation is expanding, with a growing list of South African celebrities and prominent figures being scrutinized for potential involvement in the misuse of funds. The SIU has indicated that further arrests and asset seizures are anticipated as the investigation progresses.

The NLC has not yet issued a comprehensive response to the SIU’s latest findings. The Special Tribunal’s preservation order prevents the sale or transfer of the frozen assets pending the outcome of the investigation and potential forfeiture proceedings. The SIU has stated its commitment to recovering the misappropriated funds and holding those responsible accountable.