News
South Africa’s R34 Million Jozi FM Lottery Scandal: Inside the SIU’s High-Stakes Investigation
A Soweto story that refuses to stay quiet
Soweto’s beloved community radio station, Jozi FM, is at the centre of a financial mystery that has been simmering for more than ten years. What began as a National Lotteries Commission grant meant to build a multimedia centre in the Jabulani precinct has spiralled into police complaints, internal resignations, and a full investigation by the Special Investigating Unit.
At the heart of it is a simple yet worrying question. What happened to more than R34 million in lottery funding paid to the Soweto Media Resources Centre, the non-profit company that operates Jozi FM?
A project that never took shape
Station CEO Mpho Mhlongo says management has never been able to account for a large portion of the money. He points to an initial R24 million grant from over a decade ago, insisting that nothing resembling a multimedia centre was ever built. According to him, meetings were held, architects were consulted, and plans were shown on a laptop, yet no land was secured, no timelines were given, and no progress materialised.
He believes millions were withdrawn from the dedicated project account without his knowledge. He says the station now carries a tax debt linked to the first tranche of funding and that inquiries about the missing project led to years of tension, his suspension, and threats to his job.
The chair’s version of events
Board chairperson Rapiste Montsho rejects this narrative. He says Jozi FM was never the intended beneficiary of the funds and that the organisation acted as a conduit for an initiative called “Freedom Was Not Free.” This project, he says, involved interviewing and documenting the stories of ageing liberation veterans. He maintains that all spending was legitimate, fully recorded, and used to produce and archive material.
However, neither GroundUp nor Jozi FM management has been able to find any public evidence of the documentaries said to have been produced. Montsho declined to provide links or further details, saying the SIU will receive everything during its investigation.
R34 million, three payments, and new questions
According to NLC annual reports, the funding came in three payments.
Twelve million rand was paid in August 2013, another twelve million in April 2014, and a further ten point eight million in October 2015.
All funds were processed under one project number. A separate grant in 2016, worth four hundred and seven thousand rand for a heritage project, was also awarded, although most of that money was never released due to missing progress reports.
Two Jozi FM board members have since resigned, explaining that they no longer had confidence in the chairperson. Station management has opened cases of fraud and corruption with both the police and the SIU.
Community frustration builds
For many Sowetans, Jozi FM represents more than entertainment. It is a cultural voice, a local connector, and a community lifeline. Seeing it entangled in a years-long funding dispute has sparked concern and frustration.
Local residents, community groups, and listeners have questioned how so much money could pass through a single project with no visible outcome. Some have expressed hope that the SIU’s involvement will finally provide clarity.
A pattern in the precinct
This is not the only lottery-funded project in Jabulani that has stalled. The nearby National Academy of Performing Arts, led by music legends Caiphus Semenya and Letta Mbuli, also received significant funding but remains incomplete six years later. Although unrelated to Jozi FM, it highlights a broader issue of accountability in high-profile projects intended for the precinct.
What comes next
The SIU now holds all documentation supplied by the National Lotteries Commission. Investigators will determine whether the funds were properly used and whether any criminal action should follow.
For Jozi FM’s loyal audience, the hope is simple. A transparent outcome, a clear explanation, and a station free of the shadow that has hovered for far too long.
Follow Joburg ETC on Facebook, Twitter, TikT
For more News in Johannesburg, visit joburgetc.com
Source: GroundUp
Featured Image: News24
