The Exclusive Investigating Device has discovered five accounting corporations that helped loot Lottery cash. Graphic: Lisa Nelson
The Special Investigating Unit has determined 5 accounting and auditing firms that assisted non-gain firms loot Lottery revenue intended for “great brings about”.
The accounting companies compiled fraudulent money statements employed by these providers to submit an application for Lottery funding, the SIU explained to Parliament.
Performing chief national investigations officer Zodwa Xesibe said the SIU would choose motion to own these firms blacklisted.
A 4-yr probe from the หวย ลาว ย้อน หลัง Unique Investigating Unit (SIU) has exposed five accounting and auditing firms that served dodgy non-profit companies loot hundreds of millions of rands designed for “very good triggers” from the Lottery.
These companies had been explained from the SIU as “Experienced enablers,” who “compiled fraudulent fiscal statements” which were used by the companies to submit an application for Lottery funding.
The 5 organizations were being named in Parliament from the SIU’s acting chief nationwide investigations officer Zodwa Xesibe. These are TTP Consulting, Dzata Accountants, Magodi Consulting, Mageba Ntuli Consulting and Tafta Consulting and Accounting Solutions.
Fraudulent financials produced by these 5 accounting corporations served approximately forty corporations get their palms on lottery funding, based on the SIU presentation.
Determined by a Device containing information with all lottery grants because 2002, these companies obtained in excess of R314-million in funding.
“These NPCs had been funded by the Nationwide Lotteries Fee (NLC) even so the resources were not applied for their meant intent,” Xesibe informed Parliament’s Trade, Marketplace and Opposition Portfolio Committee very last 7 days.
The SIU, the Hawks and the National Prosecuting Authority (NPA) had been in Parliament to report to the committee on progress in bringing individuals and organisations associated with looting the lottery to e-book.
Xesibe advised GroundUp that the SIU intended to lodge problems versus the accounting companies concerned and was checking if these corporations have been registered and, If that's the case, with which Expert bodies.
“We wish these firms for being blacklisted,” she told GroundUp.
To qualify for Lottery funding, an organisation was necessary to create two yrs of annual money statements, Xesibe defined in Parliament.
Having said that, being an ongoing six-yr investigation into lottery corruption by GroundUp has disclosed, hijacked non-revenue organisations (NPOs) or new shelf non-income providers (NPCs) with no monetary keep track of documents ended up used to submit an application for funding.
In a few occasions, Just about equivalent financial statements had been made for unrelated organisations, generally with just the names with the organisations improved, GroundUp’s investigation found.
Paperwork submitted by authentic NPCs for unsuccessful grant programs ended up typically used by new or hijacked NPCs and NPOs to submit an application for funding. The small print and documents with the unsuccessful applicants had been provided by senior Lottery officers towards the dodgy applicants.
With cursory or - typically - no verification, these dodgy applicants were awarded a lot of rands in grants. Sometimes further tranches of cash ended up paid out out without the need of A lot checking on the development of initiatives.
The overwhelming majority of these grants were made by using proactive funding, which was at the center in the looting from the lottery. Proactive funding authorized the Minister of Trade, Sector and Levels of competition, or even the NLC at the side of its board, to discover leads to to fund without the need of very first demanding an software. This was stopped whenever a new NLC board was appointed.
R2-billion in grants underneath investigation
SIU head Advocate Andy Mothibi said the SIU was at present investigating grants valued at about R2-billion, and the unit was nonetheless routinely getting tip-offs about a lot more corruption.
He informed MPs that the SIU’s investigation were damaged into three phases: the very first, that has been finalised, probed dodgy grants amounting to R280-million, and the next, also finished, associated R247-million. From the third section, as a consequence of be finalised at the end of the calendar year, the SIU is investigating grants valued at Just about R906-million, involving 40 NPOs and NPCs, Mothibi claimed.
He stated the SIU would apply “quickly” with the Presidential Proclamation, originally granted in October 2020 to research corruption involving lottery grants, to be extended to include procurement with the NLC.
The SIU investigation experienced to this point led to 13 disciplinary referrals towards the NLC, and administrative referrals to SARS and the Companies and Intellectual Qualities Commission to blacklist individuals implicated inside the looting. Grievances involving two folks had been referred to the Lawful Exercise Council plus the SA Institute of Chartered Accountants.
The SIU had noticed various developments under the past NLC board and government - most of whom are 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 said.
Slow progress with the NPA
The SIU has frozen households, Qualities, automobiles together with other belongings worthy of tens of tens of millions which were purchased with lottery money, but MPs expressed problem at slow development in prosecuting All those involved with the looting. (The SIU is mandated only to Recuperate assets acquired with stolen condition funds and doesn't have prosecuting powers).
While the SIU has referred 15 matters on the NPA, to this point only two people have been brought just before a courtroom. Two Gentlemen appeared in courtroom in Kimberley a short while ago in reference to misappropriated cash collected for the task to battle gender-dependent violence.
In August 2022 Christopher Tshivule was sentenced to eight a long time in prison for his section in a very R1.5-million lottery grant fraud. Costs versus two persons charged with him, who the SIU has called “kingpins” while in the corruption that overwhelmed the NLC, ended up dropped.
Main-General Mmeli Makinyane, the acting divisional commissioner for precedence offences, informed MPs the Hawks were at the moment investigating sixteen lottery corruption-associated scenarios. Another a single - the Kimberley make any difference - is prior to a court and two are already despatched to your NPA for a call to prosecute. An additional five situations are now being investigated with the SAPS detective and forensic companies, he explained.
Detailing the reasons for the hold off in prosecutions, NPA Deputy National Director Rodney de Kock said Element of The key reason why was the Hawks needed to do more investigations once they been given dossiers through the SIU.
“In essence, the investigations carried out through the SIU never satisfy legal benchmarks for prosecutions.”
As a result, the NPA experienced to operate with investigators during the DPCI (the Hawks) and SAPS to conduct criminal investigations and be certain that the proof fulfills felony prosecution benchmarks, he reported, introducing: “Having said that, the do the job of your SIU is important and contributes greatly to this method.”
De Kock claimed the SIU’s investigation “frequently results in many referrals. The referrals may possibly in the end result in just one docket and a single court docket situation.”
He said that 12 issues, that are “close to 85% comprehensive”, were being getting jointly investigated because of the Hawks and also the SIU’s Specialised Economic Functions Device. (Most of these instances, seven of which have been lodged in 2020, require previous NLC Main running officer Phillemon Letwaba, who resigned underneath a cloud in 2022, and Pretoria attorney Leslie Ramulifho.)
De Kock explained the NPA faced many “issues” in prosecuting situations. These, he mentioned, incorporated
the lapse of time concerning if the offences had been committed as well as issuing on the Presidential Proclamation on 1 November 2020;
“unavailability of witnesses and/or documentary evidence” (Before this yr, the SIU told the committee that critical documents wanted in certain prosecutions had been deleted with the NLC Pc process or experienced gone missing from Metrofile, a warehouse the place copies of files are archived and saved);
The point that some implicated people are still employed by NLC; and
A challenge for the legality on the Presidential Proclamation by former NLC chairperson Alfred Nevhutanda.
“The NPA is devoted to making certain finalisation in these matters. To this end, a team of dedicated prosecutors has been allotted to oversee all NLC matters currently less than investigation,” de Kock claimed. “Matters are taken care of being a priority. At the time [the] investigations are accomplished, the NPA will make a choice.”
What the businesses say (or don’t)
GroundUp was only in the position to get comment from among the list of 5 firms accused by the SIU in Parliament of producing fraudulent yearly economical statements,TTP Consulting.
Aubrey Moeng, among TTP’s two directors, claimed within an electronic mail in reaction to questions: “As a result of consumer confidentiality, we would like to suggest that TTP Consulting is just not ready to divulge customers’ monetary private information with the general public or media … without the consent from the shopper or simply a authorized purpose.”
The company is usually a “lover” of numerous point out entities, like SARS and also the CIPC, In keeping with its Site.
Neither of The 2 administrators of Dzata Accountants, who are equally mentioned as inactive around the CIPC sign-up of corporations, responded to emailed thoughts. The organization has become deregistered because of the CIPC for failing to post money statements considering the fact that 2021.
The only real director of Mageba Ntuli Buying and selling and Consulting Provider, Patrick Zulu, died 3 many years back, In keeping with Formal information. The company was deregistered via the CIPC for failing to submit monetary statements since 2021.
Matamela Magodi, the only director of Magodi Consultants, didn't respond to thoughts emailed to him.
GroundUp was unable to come across any listing for Tafta Consulting and Accounting Companies with the CIPC. We have been also struggling to trace any of the company’s directors to ask for comment.