The Special Investigating Unit (SIU) is investigating lottery grants exceeding R34 million awarded to the Soweto Media Resources Centre (SMRC), which operates the radio station Jozi FM. The probe follows public disputes between Jozi FM’s Board and its management highlighted during a media conference on October 18, led by CEO Mpho Mhlongo. Mhlongo has raised concerns over the accountability of a R24 million grant allocated more than a decade ago. He has formally reported instances of fraud and corruption to the Orlando Soweto SAPS and the SIU
According to the National Lotteries Commission (NLC) annual reports, this R24 million was released in two payments of R12 million each in August 2013 and April 2014, along with an additional R10.8 million paid in October 2015, totaling R34.8 million. A source familiar with the grants indicated that this funding was intended for a “museum” and the launch of a “documentary/coffee table book,” all paid under NLC project number 72744.
Additionally, SMRC received a grant of R407,400 in 2016 for a project focused on the documentation of South African songbook heritage and associated workshops. However, while an initial payment of R135,000 was approved for administrative costs, the second payment was withheld due to the organization failing to submit a required progress report.
The NLC has submitted all records related to SMRC funding to the SIU. DA MP Toby Chance, representing Soweto North, stated that two board members resigned, citing a loss of confidence in board chair Rapitse Montsho and distancing themselves from alleged financial misconduct. Chance emphasized that Jozi FM’s management assured the DA that the station remains financially viable and does not rely on lottery funding for its operations. “The people of Soweto deserve a radio station free from allegations of corruption and embezzlement,” he said, urging the SIU to expedite its investigation and press charges if warranted.
During the media conference, CEO Mhlongo criticized board chair Montsho, who became a director of SMRC in 2012 and chairperson in 2014. Mhlongo claims that the management was informed in 2013 that the NLC had allocated R12 million for a media resource centre and that a site within the Jabulani Precinct had been identified.
Contrarily, Montsho contended that SMRC was merely a conduit for lottery funds intended for a project called “Freedom Was Not Free,” developed in partnership with an organization called Legacy. He stated that the total amount deposited into the project’s bank account was significantly less than R34.8 million and asserted that all funds had been appropriately accounted for.
Mhlongo claimed that as one of three signatories on the account established for lottery funds, he was unaware of withdrawals made without his knowledge and is unclear on how the funds were spent. He mentioned that the station has records only for the initial R12 million payments, which left a tax debt.
He stated that various amounts from the NLC account were allocated to different service providers, including architects, but he believes that the money is largely gone. Mhlongo expressed frustration over the lack of transparency, emphasizing, “It’s been a long time with no progress; we were harassed for seeking answers. We had no choice but to go public.”
Mhlongo also revealed that he faced suspension and nearly lost his job for questioning the board’s handling of the funds. He described Montsho as someone with considerable influence and connections, describing him as a veteran connected to political leadership.
Makgopa, the head of programs at Jozi FM, reported that he was arrested earlier this year after Montsho accused him of intimidation and harassment. GroundUp found no evidence of the promised resource center during a recent visit to the Jabulani precinct. Managers at Jozi FM assert that there are no building and no land allocated for such a project.
This isn’t the only concern regarding lottery funding in Soweto. GroundUp previously reported on the stalled National Academy of Performing Arts (NAAPA), headed by music icons Caiphus Semenya and Letta Mbuli. Like Jozi FM, the academy is under investigation by the SIU after receiving R15 million in lottery funding and R10 million in government grants, yet it remains unopened six years later. Semenya stated that an additional R28 million is needed to complete the project.