The accountants who aided loot the Lottery

The accountants who aided loot the Lottery

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The Unique Investigating Device has recognized five accounting corporations that aided loot Lottery funds. Graphic: Lisa Nelson

The Unique Investigating Unit has discovered 5 accounting and auditing firms that aided non-income businesses loot Lottery funds meant for “good brings about”.
The accounting corporations compiled fraudulent financial statements used by these businesses to apply for Lottery funding, the SIU instructed Parliament.
Acting Main national investigations officer Zodwa Xesibe reported the SIU would choose action to get these firms blacklisted.
A 4-calendar year probe via the ผล สลาก Special Investigating Device (SIU) has uncovered 5 accounting and auditing companies that helped dodgy non-gain businesses loot countless a lot of rands meant for “good results in” within the Lottery.

These companies were explained because of the SIU as “Experienced enablers,” who “compiled fraudulent money statements” which were employed by the businesses to make an application for Lottery funding.

The five corporations ended up named in Parliament with the SIU’s acting chief national investigations officer Zodwa Xesibe. These are TTP Consulting, Dzata Accountants, Magodi Consulting, Mageba Ntuli Consulting and Tafta Consulting and Accounting Expert services.

Fraudulent financials produced by these five accounting corporations assisted approximately forty businesses get their hands on lottery funding, in accordance with the SIU presentation.

Dependant on a Resource that contains info with all lottery grants considering that 2002, these firms received more than R314-million in funding.

“These NPCs ended up funded through the Countrywide Lotteries Fee (NLC) but the money weren't utilized for their meant reason,” Xesibe advised Parliament’s Trade, Field and Levels of competition Portfolio Committee previous 7 days.

The SIU, the Hawks and also the National Prosecuting Authority (NPA) were in Parliament to report to the committee on progress in bringing individuals and organisations involved in looting the lottery to e-book.

Xesibe informed GroundUp which the SIU intended to lodge complaints from the accounting firms associated and was checking if these corporations have been registered and, If that's the case, with which Experienced bodies.

“We want these firms to generally be blacklisted,” she told GroundUp.

To qualify for Lottery funding, an organisation was needed to generate two a long time of once-a-year monetary statements, Xesibe spelled out in Parliament.

However, being an ongoing six-year investigation into lottery corruption by GroundUp has disclosed, hijacked non-financial gain organisations (NPOs) or new shelf non-profit providers (NPCs) without having economic observe documents had been accustomed to make an application for funding.

In a few cases, Pretty much similar monetary statements had been manufactured for unrelated organisations, normally with only the names of your organisations modified, GroundUp’s investigation uncovered.

Paperwork submitted by genuine NPCs for unsuccessful grant applications were normally utilized by new or hijacked NPCs and NPOs to submit an application for funding. The main points and documents on the unsuccessful applicants have been equipped by senior Lottery officers for the dodgy applicants.

With cursory or - generally - no verification, these dodgy applicants were awarded many rands in grants. Often additional tranches of funds had been paid out without having A great deal examining over the development of projects.

The overwhelming majority of such grants were made by means of proactive funding, which was at the heart with the looting with the lottery. Proactive funding allowed the Minister of Trade, Industry and Competitors, or perhaps the NLC at the side of its board, to discover triggers to fund without having initial necessitating an software. This was stopped each time a new NLC board was appointed.

R2-billion in grants underneath investigation
SIU head Advocate Andy Mothibi claimed the SIU was at present investigating grants valued at about R2-billion, along with the unit was nevertheless consistently acquiring suggestion-offs about additional corruption.

He instructed MPs the SIU’s investigation were broken into three phases: the main, which has been finalised, probed dodgy grants amounting to R280-million, and the 2nd, also concluded, involved R247-million. While in the 3rd period, resulting from be finalised at the end of the year, the SIU is investigating grants valued at almost R906-million, involving 40 NPOs and NPCs, Mothibi said.

He mentioned the SIU would implement “before long” for the Presidential Proclamation, originally granted in October 2020 to investigate corruption involving lottery grants, to get extended to include procurement via the NLC.

The SIU investigation experienced so far resulted in 13 disciplinary referrals for the NLC, and administrative referrals to SARS and the Companies and Mental Attributes Commission to blacklist folks implicated inside the looting. Grievances involving two men and women had been referred to the Lawful Follow Council plus the SA Institute of Chartered Accountants.

The SIU had noticed quite a few tendencies underneath the earlier NLC board and govt - many of whom have been implicated in looting - Mothibi advised MPs.

This included a “craze of collusion between NLC officials and NPOs and NPCs”, “the hijacking of NPOs and NPCs” and “typical maladministration while in the acceptance of grants,” he claimed.

Gradual development by the NPA
The SIU has frozen houses, properties, vehicles and various belongings value tens of tens of millions which were purchased with lottery funds, but MPs expressed concern at gradual progress in prosecuting These involved in the looting. (The SIU is mandated only to Get well assets purchased with stolen state resources and does not have prosecuting powers).

Though the SIU has referred 15 matters into the NPA, up to now only two individuals have been introduced before a courtroom. Two Adult men appeared in court docket in Kimberley lately in connection with misappropriated money gathered for just a venture to battle gender-primarily based violence.

In August 2022 Christopher Tshivule was sentenced to eight several years in prison for his aspect in a R1.5-million lottery grant fraud. Costs against two individuals billed with him, who the SIU has described as “kingpins” during the corruption that confused the NLC, had been dropped.

Major-Typical Mmeli Makinyane, the performing divisional commissioner for priority offences, instructed MPs that the Hawks ended up at present investigating sixteen lottery corruption-associated conditions. Yet another one - the Kimberley issue - is in advance of a court docket and two are already despatched towards the NPA for a choice to prosecute. An extra 5 cases are being investigated with the SAPS detective and forensic services, he stated.

Explaining The explanations for the hold off in prosecutions, NPA Deputy Nationwide Director Rodney de Kock stated Section of The explanation was that the Hawks needed to do more investigations after they received dossiers within the SIU.

“In essence, the investigations undertaken via the SIU usually do not fulfill legal standards for prosecutions.”

Hence, the NPA had to work with investigators within the DPCI (the Hawks) and SAPS to carry out felony investigations and make sure that the evidence fulfills felony prosecution benchmarks, he stated, including: “That said, the operate with the SIU is important and contributes greatly to this method.”

De Kock claimed which the SIU’s investigation “typically results in numerous referrals. The referrals may finally end in one particular docket and one court circumstance.”

He mentioned that twelve issues, which might be “somewhere around eighty five% full”, were being getting jointly investigated via the Hawks and the SIU’s Specialised Economic Operations Unit. (The majority of these scenarios, 7 of which ended up lodged in 2020, require former NLC Main operating officer Phillemon Letwaba, who resigned beneath a cloud in 2022, and Pretoria attorney Leslie Ramulifho.)

De Kock stated the NPA confronted quite a few “worries” in prosecuting conditions. These, he claimed, provided

the lapse of time involving once the offences had been fully commited as well as the issuing of the Presidential Proclamation on one November 2020;
“unavailability of witnesses and/or documentary proof” (Earlier this 12 months, the SIU informed the committee that critical files wanted in certain prosecutions were deleted from your NLC Laptop or computer system or had gone lacking from Metrofile, a warehouse exactly where copies of paperwork are archived and stored);
The truth that some implicated persons are still utilized by NLC; and
A challenge towards the legality from the Presidential Proclamation by former NLC chairperson Alfred Nevhutanda.
“The NPA is committed to making sure finalisation in these matters. To this finish, a team of focused prosecutors has actually been allocated to supervise all NLC matters currently less than investigation,” de Kock mentioned. “Issues are handled for a priority. At the time [the] investigations are concluded, the NPA will make a decision.”

What the businesses say (or don’t)
GroundUp was only able to get comment from on the list of five corporations accused through the SIU in Parliament of manufacturing fraudulent yearly economical statements,TTP Consulting.

Aubrey Moeng, among TTP’s two directors, mentioned in an email in reaction to concerns: “As a result of client confidentiality, we would like to suggest that TTP Consulting is just not prepared to divulge customers’ monetary private information and facts with the public or media … with no consent in the client or simply a legal purpose.”

The corporate can be a “partner” of many condition entities, such as SARS along with the CIPC, Based on its Internet site.

Neither of The 2 administrators of Dzata Accountants, who will be both outlined as inactive within the CIPC sign-up of corporations, responded to emailed thoughts. The company continues to be deregistered through the CIPC for failing to submit monetary statements since 2021.

The only director of Mageba Ntuli Buying and selling and Consulting Assistance, Patrick Zulu, died three decades in the past, As outlined by Formal data. The company was deregistered because of the CIPC for failing to submit money statements given that 2021.

Matamela Magodi, the only real director of Magodi Consultants, didn't respond to inquiries emailed to him.

GroundUp was struggling to discover any listing for Tafta Consulting and Accounting Solutions Along with the CIPC. We ended up also struggling to trace any of the organization’s directors to ask for comment.

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