Music label boss Arthur Mafokate has abandoned his bid to challenge the Special Investigating Unit (SIU) from freezing his luxury lodge.
Mafokate appeared in the high court in Johannesburg on Monday where he was expected to defend the permanent forfeiture of La Villa Rosa, his lodge in Midrand.
During his appearance, he indicated that he was withdrawing his motion to defend an application, which was filed by the national director of public prosecutions to permanently enforce an order to freeze the property.
The National Prosecuting Authority’s asset forfeiture unit and the SIU froze the property following an order obtained in December 2022.
The units obtained an order to freeze three luxury properties, a plot and a portion of a farm linked to the siphoning of lotteries grant fund, the National Lotteries Commission (NLC).
La Villa Rosa allegedly bought with NLC funds
The Mnike hitmaker’s posh La Villa Rosa guest house was allegedly purchased with money from the NLC, which was meant for the musician’s non-profit organisation SA Arts and Development Association (SAADA).
In his defence motion which was filed in court on April 25, Mafokate stated that he did receive funds from the NLC, noting that they were obtained legally.
He said the remaining balance, which was used to purchase the lodge, were funds from his other business, and were initially used to cover costs for SAADA.
“I must highlight that while the last trench was received during November 2015, most of the expenditure for the project had already been incurred with the assistance of Roadshow Marketing,” he said.
“The purpose of that last trench payment was not to restart and/or continue with activities but rather settle costs attended by the activities [project had been delivered at the expense of Roadshow Marketing and 999Music].”
Mafokate added that he had completed the work with SAADA and sent all necessary reports to the NLC on time.
R9m allegedly received from NLC
The muso allegedly received over R9-million from the NLC through SAADA to conduct arts projects for the benefit of young people from underprivileged communities.
The 999 Music boss allegedly took the money remaining from the project and purchased the guest house.
In a publicised YouTube broadcast on his challenge, Mafokate denied any wrongdoing, stating that the SIU must do its job in the investigation and that the law must take its course.
