Tsotsi star’s luxury house built with lottery money fails to sell at auction

A luxury home paid for with ill-gotten lottery money by Tsotsi and The Bold and the Beautiful actress Terry Pheto went unsold when it went under the hammer on Thursday 2 March, despite 28 bidders signing up for the auction.

Auctioneer Graham Renfrew of Asset Auctions said they would now approach these bidders to solicit offers on the three-storey home, an asset that was frozen by the Special Tribunal last year. The auctioneers had hoped to sell the house for over R4 million.

A large portion of the money used to build the home came from a National Lotteries Commission (NLC) grant meant to fund an initiation programme.

On Thursday, the SIU released a series of graphics that showed how the lottery money was spent.

The house of Moitheri Pheto that was built with funds linked to siphoning of the National Lottery Commission (NLC) grant funding will be auctioned on Thursday, 2 March 2023 at 11h00. pic.twitter.com/pcmYWnbwJL

— Special Investigating Unit (SIU) (@RSASIU) March 2, 2023

The SIU investigations have found that the money used for the purchase of the land and construction of the home came from non-profit organisations that received NLC funding meant… pic.twitter.com/lD7qMi8Lx3

— Special Investigating Unit (SIU) (@RSASIU) March 2, 2023

The SIU investigations found that the money used for the purchase of the land and construction of the home came from a non-profit organisation that received NLC funding meant for the roll-out of a public campaign of culturally sensitive medical intervention projects aimed at achieving traditional circumcision practice.

The 502-square metre property in upmarket Bryanston in Johannesburg has three bedrooms, two bathrooms, a kitchen, an open-plan dining room with a family room, lounge, a large rooftop garden with an entertainment area, a double garage, and a maid’s quarters. It is in a complex that has 24-hour security and is close to the Gautrain bus stop. It is also close to Johannesburg’s green belt. Auctioneers are now in the process of contacting interested bidders.

This followed President Cyril Ramaphosa’s Proclamation R32 of 2020, which authorised the SIU to investigate allegations of corruption and maladministration in the affairs of the National Lotteries Commission (NLC).

The auction follows a preservation order granted by the Gauteng High Court to the Asset Forfeiture Unit (AFU) and the Special Investigating Unit (SIU) on 4 November 2022 to freeze Pheto’s home and several other properties, the SIU said in a statement.

“The SIU investigations have found that the money used for the purchase of the land and construction of the home came from non-profit organisations that received NLC funding meant for the roll-out of a public campaign and culturally sensitive medical intervention projects aimed at achieving traditional circumcision practice.

“After the preservation order was granted, Pheto’s legal representatives contacted the SIU and the AFU indicating that they will not contest the preservation order granted by the High Court,” their statement said.

Renfrew, the auctioneer of the property, said no bids reached the starting bid of R3 million. “We will market the property to the 28 interested people first.” He also told GroundUp that they hope to have an offer within the next two weeks. He also suggested that press coverage of the property might have put potential bidders off.

Kaizer Kganyago, a spokesperson for the SIU, said they would wait to hear back from the AFU before proceeding forward with the matter.

© 2023 GroundUp.

This article was first published here.