Arthur Mafokate Loses Court Case Over Misuse of Government Funds

In a recent legal setback, Arthur Mafokate failed to secure protection for his properties after losing a court case linked to the alleged misappropriation of government funds.

The businessman faced repercussions in 2023 when his properties were seized following a corruption scandal amounting to over R56 million.

Mafokate’s guest house in Midrand, as revealed by Zimoja, was among the properties affected when the National Prosecuting Authority’s Asset Forfeit Unit took action.

The Special Investigating Unit (SIU) made a disclosure regarding Arthur’s non-profit organization (NPO), known as South African Art and Development Association (SAADA). The disclosure revealed that SAADA received grant funding totaling approximately R56.8 million. This came from the National Lotteries Fund (NLF) specifically designated for community development projects.

Court documents unveiled that funds meant for community projects were redirected to Mafokate’s company. Allegedly, these funds were used to purchase a guest house valued at R7.5 million in 2016. Additional funds were also allocated to his home loans.

Mafokate argued that he was entitled to the R7.5 million, claiming his businesses fulfilled the NLC requirements, and he committed no offenses.

Contrarily, the National Prosecuting Authority (NPA) argued that only about R1.8 million worth of services were rendered. They emphasized that the remaining funds were inappropriately utilized for the guest house acquisition.

The court concurred, highlighting Mafokate’s failure to provide a satisfactory explanation for the purchase. This was especially noteworthy given the minimal balances in his business accounts when the NLC grant was received.

As a result, the court dismissed Arthur Mafokate’s application to release the guest house from the preservation order. Costs were imposed on him in the process.

This legal development underscores the gravity of the allegations surrounding the misuse of government funds by the prominent businessman.