The accountants who served loot the Lottery

The accountants who served loot the Lottery

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The Distinctive Investigating Unit has discovered 5 accounting companies that assisted loot Lottery money. Graphic: Lisa Nelson

The Unique Investigating Device has determined five accounting and auditing corporations that assisted non-revenue companies loot Lottery revenue meant for “great causes”.
The accounting companies compiled fraudulent financial statements utilized by these providers to apply for Lottery funding, the SIU instructed Parliament.
Performing Main national investigations officer Zodwa Xesibe explained the SIU would acquire motion to possess these firms blacklisted.
A four-year probe through the ตรวจ รางวัล Exclusive Investigating Device (SIU) has uncovered 5 accounting and auditing firms that assisted dodgy non-gain businesses loot many millions of rands meant for “excellent brings about” within the Lottery.

These corporations were being explained via the SIU as “Experienced enablers,” who “compiled fraudulent economical statements” which were utilized by the companies to submit an application for Lottery funding.

The five businesses were named in Parliament because of the SIU’s acting Main national investigations officer Zodwa Xesibe. They are TTP Consulting, Dzata Accountants, Magodi Consulting, Mageba Ntuli Consulting and Tafta Consulting and Accounting Products and services.

Fraudulent financials produced by these five accounting corporations helped just about forty organizations get their palms on lottery funding, according to the SIU presentation.

Determined by a Software containing information with all lottery grants due to the fact 2002, these companies got above R314-million in funding.

“These NPCs have been funded with the Nationwide Lotteries Commission (NLC) nevertheless the funds weren't made use of for his or her intended objective,” Xesibe told Parliament’s Trade, Industry and Opposition Portfolio Committee previous week.

The SIU, the Hawks and also the Nationwide Prosecuting Authority (NPA) were being in Parliament to report to the committee on progress in bringing people and organisations involved in looting the lottery to book.

Xesibe instructed GroundUp which the SIU meant to lodge issues from the accounting corporations concerned and was examining if these corporations had been registered and, if so, with which Qualified bodies.

“We want these providers to be blacklisted,” she informed GroundUp.

To qualify for Lottery funding, an organisation was needed to create two decades of annual monetary statements, Xesibe discussed in Parliament.

Having said that, being an ongoing 6-yr investigation into lottery corruption by GroundUp has revealed, hijacked non-earnings organisations (NPOs) or new shelf non-earnings firms (NPCs) without any financial observe information were utilized to make an application for funding.

In some scenarios, Practically identical money statements were generated for unrelated organisations, normally with only the names in the organisations improved, GroundUp’s investigation observed.

Files submitted by real NPCs for unsuccessful grant apps were usually utilized by new or hijacked NPCs and NPOs to submit an application for funding. The details and paperwork of the unsuccessful applicants have been equipped by senior Lottery officers to your dodgy applicants.

With cursory or - frequently - no verification, these dodgy applicants had been awarded an incredible number of rands in grants. From time to time added tranches of money were paid out out with no Significantly examining around the development of projects.

The overwhelming majority of those grants were made through proactive funding, which was at the guts in the looting with the lottery. Proactive funding allowed the Minister of Trade, Market and Opposition, or perhaps the NLC in conjunction with its board, to recognize brings about to fund without the need of initial requiring an software. This was stopped any time a new NLC board was appointed.

R2-billion in grants underneath investigation
SIU head Advocate Andy Mothibi explained the SIU was at the moment investigating grants valued at more than R2-billion, and also the device was nevertheless regularly obtaining tip-offs about far more corruption.

He informed MPs the SIU’s investigation were broken into three phases: the 1st, that has been finalised, probed dodgy grants amounting to R280-million, and the second, also accomplished, associated R247-million. Within the third stage, resulting from be finalised at the conclusion of the calendar year, the SIU is investigating grants valued at almost R906-million, involving 40 NPOs and NPCs, Mothibi said.

He stated that the SIU would apply “soon” with the Presidential Proclamation, at first granted in October 2020 to investigate corruption involving lottery grants, to be prolonged to include procurement from the NLC.

The SIU investigation experienced thus far resulted in thirteen disciplinary referrals to your NLC, and administrative referrals to SARS and the Companies and Mental Homes Fee to blacklist men and women implicated in the looting. Issues involving two people had been referred into the Legal Exercise Council and the SA Institute of Chartered Accountants.

The SIU had observed various traits underneath the prior NLC board and executive - a lot of whom are already implicated in looting - Mothibi instructed MPs.

This bundled a “development of collusion concerning NLC officers and NPOs and NPCs”, “the hijacking of NPOs and NPCs” and “normal maladministration while in the approval of grants,” he stated.

Gradual development through the NPA
The SIU has frozen homes, Attributes, automobiles and also other assets worthy of tens of hundreds of thousands which were bought with lottery cash, but MPs expressed concern at sluggish development in prosecuting These involved with the looting. (The SIU is mandated only to recover property purchased with stolen condition resources and doesn't have prosecuting powers).

Whilst the SIU has referred 15 matters on the NPA, thus far only two folks have been introduced before a court docket. Two men appeared in court in Kimberley lately in connection with misappropriated funds gathered for the task to overcome gender-based mostly violence.

In August 2022 Christopher Tshivule was sentenced to eight decades in jail for his element inside a R1.five-million lottery grant fraud. Fees towards two people charged with him, who the SIU has called “kingpins” while in the corruption that confused the NLC, have been dropped.

Major-Standard Mmeli Makinyane, the performing divisional commissioner for precedence offences, informed MPs the Hawks were being at present investigating sixteen lottery corruption-similar instances. One more a person - the Kimberley matter - is just before a court and two have already been sent for the NPA for a decision to prosecute. A further 5 scenarios are now being investigated with the SAPS detective and forensic companies, he mentioned.

Explaining The explanations for your hold off in prosecutions, NPA Deputy Nationwide Director Rodney de Kock said Component of The explanation was which the Hawks had to do even further investigations after they been given dossiers from your SIU.

“In essence, the investigations carried out via the SIU usually do not satisfy felony benchmarks for prosecutions.”

Therefore, the NPA had to work with investigators within the DPCI (the Hawks) and SAPS to conduct criminal investigations and make certain that the evidence meets prison prosecution benchmarks, he reported, incorporating: “That said, the perform from the SIU is important and contributes greatly to this method.”

De Kock stated which the SIU’s investigation “usually brings about a number of referrals. The referrals might in the long run lead to just one docket and 1 courtroom circumstance.”

He said that 12 matters, which happen to be “roughly 85% full”, ended up remaining jointly investigated by the Hawks as well as the SIU’s Specialised Economic Operations Device. (A large number of cases, 7 of which have been lodged in 2020, entail former NLC Main running officer Phillemon Letwaba, who resigned below a cloud in 2022, and Pretoria lawyer Leslie Ramulifho.)

De Kock reported the NPA faced quite a few “issues” in prosecuting instances. These, he reported, incorporated

the lapse of your time in between if the offences were committed plus the issuing of the Presidential Proclamation on 1 November 2020;
“unavailability of witnesses and/or documentary evidence” (Previously this 12 months, the SIU instructed the committee that critical files essential in some prosecutions had been deleted through the NLC computer technique or experienced long gone lacking from Metrofile, a warehouse where copies of documents are archived and saved);
the fact that some implicated people remain used by NLC; and
A obstacle into the legality of the Presidential Proclamation by previous NLC chairperson Alfred Nevhutanda.
“The NPA is devoted to ensuring finalisation in these matters. To this end, a team of focused prosecutors continues to be allocated to supervise all NLC issues at this time less than investigation,” de Kock stated. “Issues are handled to be a priority. The moment [the] investigations are finished, the NPA is likely to make a call.”

What the businesses say (or don’t)
GroundUp was only capable to get remark from one of many five corporations accused from the SIU in Parliament of producing fraudulent annual monetary statements,TTP Consulting.

Aubrey Moeng, among TTP’s two directors, explained in an email in reaction to issues: “Resulting from customer confidentiality, we would like to advise that TTP Consulting is not really ready to disclose consumers’ monetary private data with the public or media … with no consent from the customer or even a lawful purpose.”

The corporate is really a “lover” of a number of condition entities, including SARS along with the CIPC, according to its Internet site.

Neither of The 2 administrators of Dzata Accountants, who are equally shown as inactive to the CIPC sign-up of corporations, responded to emailed inquiries. The business is deregistered from the CIPC for failing to post money statements considering the fact that 2021.

The only director of Mageba Ntuli Trading and Consulting Service, Patrick Zulu, died 3 many years in the past, Based on official documents. The organization was deregistered because of the CIPC for failing to submit fiscal statements because 2021.

Matamela Magodi, the only real director of Magodi Consultants, did not respond to concerns emailed to him.

GroundUp was unable to locate any listing for Tafta Consulting and Accounting Solutions While using the CIPC. We were being also unable to trace any of the organization’s directors to request remark.

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