The Exclusive Investigating Device has identified 5 accounting firms that aided loot Lottery funds. Graphic: Lisa Nelson
The Specific Investigating Device has recognized 5 accounting and auditing corporations that served non-income organizations loot Lottery dollars supposed for “excellent results in”.
The accounting corporations compiled fraudulent monetary statements used by these firms to make an application for Lottery funding, the SIU instructed Parliament.
Performing chief national investigations officer Zodwa Xesibe stated the SIU would get action to obtain these corporations blacklisted.
A four-year probe via the หวย หุ้น Unique Investigating Unit (SIU) has uncovered five accounting and auditing corporations that served dodgy non-gain companies loot a huge selection of numerous rands meant for “good results in” with the Lottery.
These companies were explained from the SIU as “Experienced enablers,” who “compiled fraudulent fiscal statements” that were utilized by the businesses to apply for Lottery funding.
The five corporations have been named in Parliament with the SIU’s acting Main nationwide investigations officer Zodwa Xesibe. They can be TTP Consulting, Dzata Accountants, Magodi Consulting, Mageba Ntuli Consulting and Tafta Consulting and Accounting Solutions.
Fraudulent financials made by these five accounting firms served approximately forty providers get their fingers on lottery funding, based on the SIU presentation.
Depending on a Software that contains facts with all lottery grants because 2002, these providers bought over R314-million in funding.
“These NPCs ended up funded by the National Lotteries Commission (NLC) however the money were not employed for their supposed intent,” Xesibe advised Parliament’s Trade, Sector and Competition Portfolio Committee past week.
The SIU, the Hawks along with the Nationwide Prosecuting Authority (NPA) were in Parliament to report back to the committee on progress in bringing people and organisations linked to looting the lottery to ebook.
Xesibe informed GroundUp which the SIU intended to lodge grievances versus the accounting firms included and was examining if these companies were being registered and, In that case, with which Experienced bodies.
“We wish these providers to become blacklisted,” she informed GroundUp.
To qualify for Lottery funding, an organisation was required to create two years of once-a-year money statements, Xesibe stated in Parliament.
Nonetheless, as an ongoing 6-12 months investigation into lottery corruption by GroundUp has unveiled, hijacked non-gain organisations (NPOs) or new shelf non-financial gain companies (NPCs) without having fiscal monitor documents have been utilized to apply for funding.
In a few occasions, Pretty much identical money statements were being produced for unrelated organisations, frequently with just the names of your organisations modified, GroundUp’s investigation located.
Paperwork submitted by authentic NPCs for unsuccessful grant purposes were being often employed by new or hijacked NPCs and NPOs to submit an application for funding. The small print and documents from the unsuccessful applicants were equipped by senior Lottery officials to your dodgy applicants.
With cursory or - usually - no verification, these dodgy applicants were being awarded many rands in grants. From time to time added tranches of funds ended up paid out with no A lot checking to the progress of assignments.
The overwhelming majority of such grants had been designed by way of proactive funding, which was at the center from the looting on the lottery. Proactive funding permitted the Minister of Trade, Industry and Level of competition, or maybe the NLC together with its board, to recognize brings about to fund without having very first demanding an application. This was stopped whenever a new NLC board was appointed.
R2-billion in grants below investigation
SIU head Advocate Andy Mothibi stated the SIU was at present investigating grants valued at more than R2-billion, and also the device was nonetheless regularly getting suggestion-offs about much more corruption.
He advised MPs which the SIU’s investigation had been damaged into a few phases: the main, which has been finalised, probed dodgy grants amounting to R280-million, and the second, also done, included R247-million. Inside the third section, as a result of 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 claimed.
He claimed which the SIU would use “quickly” to the Presidential Proclamation, originally granted in Oct 2020 to research corruption involving lottery grants, being extended to include procurement from the NLC.
The SIU investigation experienced up to now led to thirteen disciplinary referrals for the NLC, and administrative referrals to SARS and the Companies and Mental Attributes Commission to blacklist people today implicated while in the looting. Problems involving two people were referred to the Lawful Observe Council and the SA Institute of Chartered Accountants.
The SIU experienced noticed various traits beneath the past NLC board and executive - many of whom have already been implicated in looting - Mothibi informed MPs.
This integrated a “development of collusion involving NLC officials and NPOs and NPCs”, “the hijacking of NPOs and NPCs” and “common maladministration within the acceptance of grants,” he mentioned.
Slow development through the NPA
The SIU has frozen homes, Homes, vehicles and also other belongings value tens of tens of millions that were bought with lottery money, but MPs expressed worry at gradual development in prosecuting Those people linked to the looting. (The SIU is mandated only to Get better belongings acquired with stolen condition money and does not have prosecuting powers).
Even though the SIU has referred 15 matters into the NPA, so far only two people have been introduced right before a courtroom. Two Males appeared in court docket in Kimberley not long ago in connection with misappropriated cash collected for your undertaking to beat gender-based mostly violence.
In August 2022 Christopher Tshivule was sentenced to 8 a long time in jail for his component inside of a R1.five-million lottery grant fraud. Costs in opposition to two people today billed with him, who the SIU has called “kingpins” within the corruption that overcome the NLC, have been dropped.
Big-Normal Mmeli Makinyane, the performing divisional commissioner for priority offences, instructed MPs the Hawks had been presently investigating sixteen lottery corruption-linked situations. A different just one - the Kimberley make any difference - is in advance of a court and two happen to be despatched for the NPA for a call to prosecute. A further five cases are now being investigated by the SAPS detective and forensic expert services, he explained.
Explaining the reasons for that hold off in prosecutions, NPA Deputy National Director Rodney de Kock explained part of The explanation was which the Hawks had to do more investigations when they obtained dossiers through the SIU.
“In essence, the investigations undertaken because of the SIU will not satisfy prison benchmarks for prosecutions.”
Thus, the NPA had to operate with investigators within the DPCI (the Hawks) and SAPS to perform legal investigations and make sure that the proof meets prison prosecution specifications, he reported, including: “Having said that, the function with the SIU is vital and contributes tremendously to this method.”
De Kock mentioned which the SIU’s investigation “frequently leads to many referrals. The referrals may in the end cause just one docket and a person court docket situation.”
He stated that twelve matters, which happen to be “roughly eighty five% entire”, were being remaining jointly investigated via the Hawks plus the SIU’s Specialised Financial Operations Device. (A large number of conditions, seven of which were lodged in 2020, contain previous NLC chief operating officer Phillemon Letwaba, who resigned less than a cloud in 2022, and Pretoria attorney Leslie Ramulifho.)
De Kock stated the NPA confronted numerous “problems” in prosecuting circumstances. These, he mentioned, bundled
the lapse of time concerning when the offences ended up fully commited plus the issuing from the Presidential Proclamation on 1 November 2020;
“unavailability of witnesses and/or documentary proof” (Previously this calendar year, the SIU instructed the committee that vital documents necessary in a few prosecutions had been deleted through the NLC computer method or had gone missing from Metrofile, a warehouse exactly where copies of files are archived and saved);
The truth that some implicated men and women are still used by NLC; and
A problem for the legality from the Presidential Proclamation by previous NLC chairperson Alfred Nevhutanda.
“The NPA is committed to making sure finalisation in these matters. To this conclude, a team of devoted prosecutors has long been allocated to oversee all NLC matters currently beneath investigation,” de Kock stated. “Matters are managed as being a priority. After [the] investigations are concluded, the NPA could make a call.”
What the companies say (or don’t)
GroundUp was only capable to get comment from among the list of five businesses accused from the SIU in Parliament of manufacturing fraudulent annual economical statements,TTP Consulting.
Aubrey Moeng, among TTP’s two administrators, mentioned within an e mail in reaction to issues: “As a result of customer confidentiality, we want to suggest that TTP Consulting is not ready to divulge purchasers’ financial confidential details with the public or media … without the consent in the consumer or maybe a authorized reason.”
The organization is usually a “partner” of several state entities, including SARS and also the CIPC, Based on its website.
Neither of The 2 directors of Dzata Accountants, that are equally listed as inactive over the CIPC register of corporations, responded to emailed queries. The corporation has become deregistered from the CIPC for failing to submit fiscal statements since 2021.
The sole director of Mageba Ntuli Buying and selling and Consulting Assistance, Patrick Zulu, died a few years ago, In accordance with official information. The business was deregistered with the CIPC for failing to post fiscal statements due to the fact 2021.
Matamela Magodi, the only director of Magodi Consultants, did not reply to queries emailed to him.
GroundUp was unable to find any listing for Tafta Consulting and Accounting Products and services Along with the CIPC. We had been also not able to trace any of the organization’s administrators to request comment.