The accountants who assisted loot the Lottery

The accountants who assisted loot the Lottery

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The Specific Investigating Device has determined five accounting firms that assisted loot Lottery resources. Graphic: Lisa Nelson

The Exclusive Investigating Device has discovered 5 accounting and auditing firms that assisted non-profit providers loot Lottery cash meant for “fantastic triggers”.
The accounting companies compiled fraudulent financial statements used by these corporations to apply for Lottery funding, the SIU explained to Parliament.
Acting Main countrywide investigations officer Zodwa Xesibe mentioned the SIU would choose action to own these corporations blacklisted.
A 4-year probe through the ตรวจ สลาก Special Investigating Unit (SIU) has uncovered five accounting and auditing firms that helped dodgy non-earnings providers loot a huge selection of a lot of rands intended for “superior brings about” from your Lottery.

These corporations ended up explained with the SIU as “professional enablers,” who “compiled fraudulent economical statements” that were utilized by the companies to make an application for Lottery funding.

The 5 corporations were named in Parliament through the SIU’s acting chief countrywide investigations officer Zodwa Xesibe. They are TTP Consulting, Dzata Accountants, Magodi Consulting, Mageba Ntuli Consulting and Tafta Consulting and Accounting Providers.

Fraudulent financials produced by these 5 accounting companies assisted almost forty providers get their palms on lottery funding, according to the SIU presentation.

Determined by a Instrument made up of data with all lottery grants given that 2002, these organizations acquired about R314-million in funding.

“These NPCs ended up funded because of the Nationwide Lotteries Commission (NLC) though the money weren't employed for his or her supposed objective,” Xesibe instructed Parliament’s Trade, Business and Competitiveness Portfolio Committee last week.

The SIU, the Hawks along with the Countrywide Prosecuting Authority (NPA) were being in Parliament to report back to the committee on development in bringing people and organisations involved with looting the lottery to e book.

Xesibe explained to GroundUp which the SIU meant to lodge complaints towards the accounting firms associated and was checking if these firms were being registered and, if so, with which Experienced bodies.

“We wish these firms to be blacklisted,” she explained to GroundUp.

To qualify for Lottery funding, an organisation was necessary to create two years of yearly economic statements, Xesibe explained in Parliament.

Nevertheless, as an ongoing 6-calendar year investigation into lottery corruption by GroundUp has discovered, hijacked non-financial gain organisations (NPOs) or new shelf non-revenue providers (NPCs) with no economic observe information were utilized to apply for funding.

In some scenarios, Just about equivalent money statements had been produced for unrelated organisations, generally with only the names from the organisations adjusted, GroundUp’s investigation located.

Files submitted by genuine NPCs for unsuccessful grant programs have been typically employed by new or hijacked NPCs and NPOs to apply for funding. The details and paperwork from the unsuccessful applicants were supplied by senior Lottery officials into the dodgy applicants.

With cursory or - usually - no verification, these dodgy applicants ended up awarded millions of rands in grants. Occasionally further tranches of money ended up paid out out without the need of Substantially examining within the progress of initiatives.

The overwhelming majority of such grants ended up produced by means of proactive funding, which was at the guts of the looting from the lottery. Proactive funding permitted the Minister of Trade, Sector and Opposition, or perhaps the NLC at the side of its board, to detect results in to fund without the need of to start with demanding an application. This was stopped when a new NLC board was appointed.

R2-billion in grants less than investigation
SIU head Advocate Andy Mothibi claimed the SIU was at the moment investigating grants valued at above R2-billion, and the device was nonetheless consistently getting suggestion-offs about more corruption.

He advised MPs which the SIU’s investigation had been broken into three phases: the 1st, that has been finalised, probed dodgy grants amounting to R280-million, and the 2nd, also finished, concerned R247-million. From the 3rd period, due to be finalised at the conclusion of the calendar year, the SIU is investigating grants valued at almost R906-million, involving forty NPOs and NPCs, Mothibi reported.

He reported which the SIU would implement “quickly” to the Presidential Proclamation, originally granted in Oct 2020 to research corruption involving lottery grants, to become prolonged to incorporate procurement with the NLC.

The SIU investigation had so far brought about thirteen disciplinary referrals on the NLC, and administrative referrals to SARS and the Companies and Intellectual Attributes Commission to blacklist persons implicated inside the looting. Problems involving two individuals had been referred into the Legal Observe Council along with the SA Institute of Chartered Accountants.

The SIU experienced observed a number of developments beneath the preceding NLC board and government - lots of whom are implicated in looting - Mothibi explained to MPs.

This included a “development of collusion concerning NLC officers and NPOs and NPCs”, “the hijacking of NPOs and NPCs” and “standard maladministration inside the approval of grants,” he reported.

Sluggish progress via the NPA
The SIU has frozen residences, Qualities, cars and various property worth tens of thousands and thousands which were bought with lottery cash, but MPs expressed issue at slow progress in prosecuting People linked to the looting. (The SIU is mandated only to recover property purchased with stolen condition cash and doesn't have prosecuting powers).

Though the SIU has referred fifteen issues into the NPA, so far only two people have been introduced before a court docket. Two men appeared in court docket in Kimberley recently in reference to misappropriated cash collected for a project to beat gender-dependent violence.

In August 2022 Christopher Tshivule was sentenced to eight decades in prison for his part inside of a R1.5-million lottery grant fraud. Charges from two individuals billed with him, who the SIU has described as “kingpins” while in the corruption that confused the NLC, had been dropped.

Important-Common Mmeli Makinyane, the acting divisional commissioner for precedence offences, informed MPs the Hawks were now investigating 16 lottery corruption-relevant conditions. Yet another a person - the Kimberley issue - is in advance of a court docket and two are actually despatched into the NPA for a call to prosecute. An additional 5 situations are now being investigated with the SAPS detective and forensic products and services, he said.

Describing the reasons for your delay in prosecutions, NPA Deputy National Director Rodney de Kock claimed part of the reason was which the Hawks needed to do even further investigations if they gained dossiers from your SIU.

“In essence, the investigations carried out from the SIU tend not to fulfill felony requirements for prosecutions.”

Therefore, the NPA had to operate with investigators within the DPCI (the Hawks) and SAPS to carry out felony investigations and be sure that the proof satisfies criminal prosecution benchmarks, he stated, including: “That said, the work in the SIU is significant and contributes enormously to this method.”

De Kock reported that the SIU’s investigation “frequently results in numerous referrals. The referrals might in the end bring about a person docket and one particular court docket scenario.”

He stated that 12 matters, that are “somewhere around 85% full”, ended up becoming jointly investigated through the Hawks and also the SIU’s Specialised Economic Operations Unit. (Most of these conditions, 7 of which were lodged in 2020, include former NLC Main functioning officer Phillemon Letwaba, who resigned less than a cloud in 2022, and Pretoria lawyer Leslie Ramulifho.)

De Kock stated the NPA faced a number of “troubles” in prosecuting scenarios. These, he explained, provided

the lapse of time between in the event the offences had been dedicated and the issuing of your Presidential Proclamation on 1 November 2020;
“unavailability of witnesses and/or documentary proof” (Before this yr, the SIU told the committee that essential files required in a few prosecutions had been deleted with the NLC Laptop procedure or experienced absent missing from Metrofile, a warehouse wherever copies of paperwork are archived and stored);
The truth that some implicated persons are still employed by NLC; and
A obstacle to your legality with the Presidential Proclamation by former NLC chairperson Alfred Nevhutanda.
“The NPA is devoted to ensuring finalisation in these matters. To this finish, a group of dedicated prosecutors has long been allotted to oversee all NLC issues at present under investigation,” de Kock mentioned. “Matters are dealt with as a priority. Once [the] investigations are concluded, the NPA could make a decision.”

What the companies say (or don’t)
GroundUp was only ready to get remark from one of several 5 providers accused by the SIU in Parliament of producing fraudulent annual economic statements,TTP Consulting.

Aubrey Moeng, amongst TTP’s two administrators, claimed within an e mail in response to queries: “As a result of consumer confidentiality, we want to recommend that TTP Consulting is not prepared to disclose purchasers’ money confidential information and facts with the general public or media … with no consent with the client or maybe a legal cause.”

The corporation is really a “associate” of several point out entities, which includes SARS plus the CIPC, Based on its Site.

Neither of the two directors of Dzata Accountants, who are each outlined as inactive within the CIPC register of businesses, responded to emailed questions. The corporation has long been deregistered because of the CIPC for failing to submit economical statements considering the fact that 2021.

The only real director of Mageba Ntuli Buying and selling and Consulting Service, Patrick Zulu, died 3 years in the past, In accordance with Formal records. The business was deregistered by the CIPC for failing to submit economical statements given that 2021.

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

GroundUp was unable to discover any listing for Tafta Consulting and Accounting Providers With all the CIPC. We have been also unable to trace any of the company’s administrators to ask for remark.

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