Pheto's lottery scandal flies in face of dire societal challenges

As 28 bidders are expected to make offers for award-winning actor Terry Pheto’s luxury house in Bryanston, Joburg, people who run drug rehabilitation centres in Tshwane say there is a need for more facilities.

The house is believed to have been acquired with proceeds from the National Lottery Commission (NLC) which was meant to go towards a drug rehabilitation centre in Soshanguve, Tshwane. Joyce Makgale, founder and owner of Reabetsoe Rehabilitation Centre in Mabopane, said the township had a scourge of drug abuse.

“There are no rehabilitation centres in the whole of Mabopane. Our children are doing drugs and really need help. Nyaope is the drug used the most. I feel sorry for their parents. “Every time the children get sick from using these drugs, their parents suffer a lot of stress. These children are getting out of hand and steal household items after using these drugs,” said Makgale.

She said she shut down her centre, which she has been running from a local church in 2015, due to lack of premises. The centre housed children from the age of 15 where they learnt skills such as knitting, drawing and dancing.

Pheto’s house in the northern suburb of Joburg went under a hammer yesterday with 28 bidders registering after it was put in the market last week following a freeze order granted to the Special Investigating Unit in November. Pheto benefitted through her sister Dimakatso Pheto, who is one of the directors of Zibsix NPC, which applied and was approved for R20.2m in 2017.

Graham Renfrew of Asset Auctions said 28 people registered to bid within two hours yesterday, a figure that was uncommon according to him.

“It is a stunning property and we are not worried about selling it. Buyers did not come physically because the press was involved. When we started the auction at 11.10am we had six people registered and by the time we ended the auction we had 28. That shows that there is an interest to the property. People, who buy houses from R4m and upwards are normally discreet. “They don’t want to be seen and they prefer to do things privately. We are expecting to be getting emails of offers soon. The price estimation of the house was done by the curator and our job is just to auction it. As soon as the house is sold, SIU will make a public announcement.”

The classy property, which Pheto has been occupying for the past four years, is expected to fetch about R4.3m. The 502m² house has three bedrooms, two bathrooms, kitchen, lounge, double garage and maid’s quarters. The property boasts a large rooftop garden and entertainment area which is decorated with artificial green grass and pot plants. The area is perfect for hosting friends and has a mini-bar. Inside, the house has carpet and tiled floors. The corridors of the house have black and white porcelain tiles which match perfectly with black and white cow skin wall paper on the side. Her windows have stainless steel curtain poles. The spacious master bedroom has light-brown carpets and white building-in cupboards.

Yesterday, 28 people registered for the auction which was supposed to be physical but buyers opted to watch online. Though it was not sold auctioneers were positive of selling it. They told Sowetan that the selling point was the secured complex with 24-hour high security, large rooftop garden that gives one a view of the quiet suburb of Bryanston and that it has space.

The house was advertised for auction three weeks ago on Property24 and Pheto vacated the space yesteron Thursday. Auctioneers said the actress who appeared in the Academy Award-winning film Tsotsi took longer to vacate the space. Renfrew, who never met Pheto face to face, said: “We expected her to vacate the house earlier than what she did. But she was very cooperative in the whole process.”

The auction comes after a preservation order was granted by the High Court of SA, Gauteng Division, in Pretoria, to the Asset Forfeiture Unit (AFU) and Special Investigative Unit (SIU) on November 4 2022 to freeze Pheto’s home.

“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. “The SIU was, in terms of Proclamation R32 of 2020, authorised by President Cyril Ramaphosa to investigate allegations of corruption and maladministration in the affairs of NLC and the conduct of NLC officials, and to recover any financial losses suffered by the State or NLC,” SIU said in a statement.

Last year, Pheto issued a statement denying having any involvement in the matter.