The accountants who aided loot the Lottery

The accountants who aided loot the Lottery

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The Particular Investigating Unit has discovered five accounting companies that served loot Lottery resources. Graphic: Lisa Nelson

The Particular Investigating Unit has recognized five accounting and auditing companies that aided non-revenue corporations loot Lottery revenue supposed for “superior leads to”.
The accounting corporations compiled fraudulent money statements utilized by these companies to submit an application for Lottery funding, the SIU advised Parliament.
Acting Main countrywide investigations officer Zodwa Xesibe said the SIU would take action to have these corporations blacklisted.
A four-12 months probe from the ผล หวย ลาว Exclusive Investigating Unit (SIU) has exposed 5 accounting and auditing firms that aided dodgy non-revenue organizations loot many hundreds of an incredible number of rands designed for “great results in” from your Lottery.

These firms have been explained by the SIU as “Specialist enablers,” who “compiled fraudulent financial statements” that were utilized by the businesses to submit an application for Lottery funding.

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

Fraudulent financials made by these 5 accounting corporations aided practically forty organizations get their palms on lottery funding, based on the SIU presentation.

Depending on a Instrument made up of facts with all lottery grants due to the fact 2002, these businesses obtained above R314-million in funding.

“These NPCs have been funded by the Countrywide Lotteries Commission (NLC) though the funds weren't employed for their intended reason,” Xesibe instructed Parliament’s Trade, Sector and Competition Portfolio Committee previous week.

The SIU, the Hawks and the Nationwide Prosecuting Authority (NPA) ended up in Parliament to report back to the committee on progress in bringing men and women and organisations involved in looting the lottery to e-book.

Xesibe told GroundUp which the SIU intended to lodge complaints versus the accounting companies concerned and was checking if these companies were being registered and, If that's so, with which Specialist bodies.

“We wish these businesses to be blacklisted,” she informed GroundUp.

To qualify for Lottery funding, an organisation was necessary to generate two a long time of annual fiscal statements, Xesibe explained in Parliament.

On the other hand, being an ongoing 6-calendar year investigation into lottery corruption by GroundUp has revealed, hijacked non-income organisations (NPOs) or new shelf non-financial gain companies (NPCs) without any money keep track of records were being accustomed to submit an application for funding.

In a few circumstances, Nearly equivalent fiscal statements had been manufactured for unrelated organisations, typically with only the names of your organisations modified, GroundUp’s investigation observed.

Files submitted by genuine NPCs for unsuccessful grant programs were being usually utilized by new or hijacked NPCs and NPOs to apply for funding. The small print and documents on the unsuccessful applicants were being equipped by senior Lottery officers to the 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 extra tranches of resources were being compensated out devoid of Substantially checking to the development of assignments.

The overwhelming majority of these grants ended up created by using proactive funding, which was at the center of the looting in the lottery. Proactive funding permitted the Minister of Trade, Field and Levels of competition, or maybe the NLC at the side of its board, to identify leads to to fund without having very first 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 claimed the SIU was at the moment investigating grants valued at above R2-billion, and also the device was nevertheless routinely acquiring tip-offs about extra corruption.

He advised MPs which the SIU’s investigation had been damaged into three phases: the initial, that has been finalised, probed dodgy grants amounting to R280-million, and the second, also concluded, associated R247-million. Inside the 3rd phase, resulting from be finalised at the end of the calendar year, the SIU is investigating grants valued at Pretty much R906-million, involving forty NPOs and NPCs, Mothibi said.

He mentioned the SIU would utilize “before long” for your Presidential Proclamation, initially granted in Oct 2020 to research corruption involving lottery grants, to get extended to incorporate procurement with the NLC.

The SIU investigation had to this point brought about 13 disciplinary referrals to the NLC, and administrative referrals to SARS and the businesses and Intellectual Qualities Fee to blacklist folks implicated in the looting. Issues involving two folks were referred on the Lawful Apply Council and also the SA Institute of Chartered Accountants.

The SIU had noticed quite a few trends beneath the past NLC board and executive - many of whom are implicated in looting - Mothibi explained to MPs.

This integrated a “trend of collusion among NLC officials and NPOs and NPCs”, “the hijacking of NPOs and NPCs” and “common maladministration within the approval of grants,” he said.

Gradual development through the NPA
The SIU has frozen houses, properties, autos and various property well worth tens of millions that were acquired with lottery funds, but MPs expressed worry at gradual progress in prosecuting All those involved in the looting. (The SIU is mandated only to Get well belongings acquired with stolen point out resources and does not have prosecuting powers).

When the SIU has referred fifteen issues towards the NPA, to date only two individuals have been introduced right before a court docket. Two men appeared in court in Kimberley lately in connection with misappropriated resources gathered for just a challenge to beat gender-centered violence.

In August 2022 Christopher Tshivule was sentenced to eight many years in jail for his element inside a R1.five-million lottery grant fraud. Prices in opposition to two individuals billed with him, who the SIU has described as “kingpins” during the corruption that overwhelmed the NLC, ended up dropped.

Significant-Normal Mmeli Makinyane, the acting divisional commissioner for priority offences, instructed MPs that the Hawks have been currently investigating 16 lottery corruption-linked instances. A different one - the Kimberley issue - is in advance of a court docket and two happen to be sent towards the NPA for a decision to prosecute. A further five situations are now being investigated because of the SAPS detective and forensic products and services, he reported.

Conveying the reasons for your hold off in prosecutions, NPA Deputy Nationwide Director Rodney de Kock stated A part of the reason was the Hawks needed to do even more investigations once they gained dossiers from your SIU.

“In essence, the investigations carried out from the SIU never satisfy felony standards for prosecutions.”

For that reason, the NPA experienced to operate with investigators within the DPCI (the Hawks) and SAPS to carry out felony investigations and ensure that the proof satisfies prison prosecution standards, he stated, including: “That said, the work of the SIU is important and contributes enormously to this method.”

De Kock mentioned which the SIU’s investigation “typically results in many referrals. The referrals may possibly ultimately cause one docket and a single court docket scenario.”

He said that twelve matters, which might be “around eighty five% complete”, ended up remaining jointly investigated through the Hawks plus the SIU’s Specialised Financial Functions Device. (The majority of these conditions, 7 of which were being lodged in 2020, include former NLC chief working officer Phillemon Letwaba, who resigned beneath a cloud in 2022, and Pretoria lawyer Leslie Ramulifho.)

De Kock stated the NPA confronted quite a few “challenges” in prosecuting cases. These, he stated, integrated

the lapse of your time involving in the event the offences were being dedicated and also the issuing of your Presidential Proclamation on 1 November 2020;
“unavailability of witnesses and/or documentary proof” (Before this 12 months, the SIU told the committee that essential files essential in some prosecutions had been deleted within the NLC Laptop method or had absent missing from Metrofile, a warehouse where copies of documents are archived and stored);
The truth that some implicated persons remain utilized by NLC; and
A problem to your legality of your Presidential Proclamation by previous NLC chairperson Alfred Nevhutanda.
“The NPA is devoted to making certain finalisation in these issues. To this end, a workforce of committed prosecutors has actually been allocated to oversee all NLC issues at this time beneath investigation,” de Kock mentioned. “Matters are managed like a precedence. As soon as [the] investigations are accomplished, the NPA will make a decision.”

What the businesses say (or don’t)
GroundUp was only capable of get remark from among the list of five businesses accused with the SIU in Parliament of manufacturing fraudulent once-a-year monetary statements,TTP Consulting.

Aubrey Moeng, one among TTP’s two administrators, claimed within an electronic mail in reaction to thoughts: “Due to client confidentiality, we wish to recommend that TTP Consulting is just not willing to disclose purchasers’ fiscal confidential info with the general public or media … without the consent from the customer or even a lawful explanation.”

The company is often a “companion” of various point out entities, which includes SARS plus the CIPC, In accordance with its Web page.

Neither of The 2 administrators of Dzata Accountants, that are both equally mentioned as inactive on the CIPC sign up of providers, responded to emailed questions. The company is deregistered through the CIPC for failing to post money statements due to the fact 2021.

The sole director of Mageba Ntuli Investing and Consulting Support, Patrick Zulu, died a few yrs ago, As outlined by official data. The company was deregistered with the CIPC for failing to post financial statements considering that 2021.

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

GroundUp was struggling to discover any listing for Tafta Consulting and Accounting Companies While using the CIPC. We were being also struggling to trace any of the corporation’s administrators to ask for comment.

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