Arthur Mafokate loses court bid to get back his R 7.5million property
Estimated reading time: 5 minute(s)
Legendary musician and businessman Arthur Mafokate has lost a court brought against the NPA’s Asset Forfeiture Unit (AFU) regarding his properties that were said to be proceeds of theft and fraud.
The AFU obtained an order on 21st December 2022 to preserve Property 85 Carlswald Road in Midrand said to be belonging to the sole member of the company 999 Music, Arthur Mafokate. The property was forfeited to the AFU following an investigation that was conducted by Special Investigative Unit (SIU) into the National Lotteries Commission (NLC) which revealed that South African Arts and Development Organization (SAADA) was granted R 9.3million to assist unemployed youth in the poor and rural areas.
They were meant to empower them with skills in music, film production, business video and overall business radio.
Instead, SAADA allegedly only used R 1.8million of the allocated funds on the project and used the remaining funds, R 7.5million to purchase a guest house known as La Villa Rosa in Midrand.
Mafokate argued in court that he was entitled to the R 7.5million as his businesses delivered the services as required by NLC and no offences were committed.
NPA’s argument was that although services were rendered, R 1.8million was too little and the remainder of the funds were used to purchase something that was not meant for. It also said that the terms and conditions of the agreement also said that the funds could/should not be carried over to any other project or organization, instead, the unused funds should’ve been returned to the NLC.
The court agreed with the NPA and further said that Mafokate failed to provide reasonable explanation as to how he could afford to purchase the property had it not been the NLC funds.
His application was dismissed with costs.
