Arena Holdings has reinstated Sunday Times editor Makhudu Sefara after an independent investigation found no evidence of misconduct over his involvement in a 2018 media conference funded through money later linked to the National Lotteries Commission (NLC) scandal.

Sefara was placed on special leave in April after the Special Investigating Unit (SIU) issued a public statement outlining its investigation into the misuse of NLC grant funding. The allegations centred on a R550,000 payment made by Todi Media to Sefara's company, Unscripted Communication, for organising a media conference for journalists in 2018.

Arena Holdings appointed Werksmans Attorneys to conduct an independent investigation into whether Sefara had acted improperly.

The company said the investigation scrutinised the service level agreement between Unscripted Communication and Todi Media, bank records, invoices, receipts, photographs of the event and the closing report submitted after the conference.

"Investigators also interviewed Mr Sefara and reviewed all correspondence and interactions between him, his legal representatives and the SIU since the publication of the SIU statement," Arena said.