The accountants who assisted loot the Lottery

The accountants who assisted loot the Lottery

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The Particular Investigating Device has recognized 5 accounting corporations that assisted loot Lottery resources. Graphic: Lisa Nelson

The Specific Investigating Unit has recognized five accounting and auditing companies that helped non-profit companies loot Lottery cash intended for “excellent brings about”.
The accounting firms compiled fraudulent economical statements employed by these companies to apply for Lottery funding, the SIU explained to Parliament.
Acting chief countrywide investigations officer Zodwa Xesibe stated the SIU would acquire motion to have these corporations blacklisted.
A 4-calendar year probe because of the ตัว หวย Particular Investigating Device (SIU) has uncovered 5 accounting and auditing firms that aided dodgy non-profit providers loot many numerous rands meant for “excellent will cause” from the Lottery.

These companies had been explained via the SIU as “Qualified enablers,” who “compiled fraudulent economic statements” which were utilized by the businesses to apply for Lottery funding.

The five providers have been named in Parliament because of the SIU’s performing chief countrywide investigations officer Zodwa Xesibe. They may be TTP Consulting, Dzata Accountants, Magodi Consulting, Mageba Ntuli Consulting and Tafta Consulting and Accounting Solutions.

Fraudulent financials produced by these five accounting companies aided just about forty businesses get their palms on lottery funding, according to the SIU presentation.

Based upon a Software containing info with all lottery grants because 2002, these businesses got over R314-million in funding.

“These NPCs were funded from the National Lotteries Commission (NLC) though the cash were not made use of for their intended intent,” Xesibe instructed Parliament’s Trade, Market and Competitiveness Portfolio Committee final week.

The SIU, the Hawks and the Countrywide Prosecuting Authority (NPA) had been in Parliament to report back to the committee on progress in bringing persons and organisations involved in looting the lottery to ebook.

Xesibe instructed GroundUp which the SIU intended to lodge grievances towards the accounting firms involved and was examining if these companies have been registered and, In that case, with which Expert bodies.

“We want these companies to generally be blacklisted,” she explained to GroundUp.

To qualify for Lottery funding, an organisation was required to develop two several years of once-a-year fiscal statements, Xesibe stated in Parliament.

Even so, being an ongoing 6-year investigation into lottery corruption by GroundUp has unveiled, hijacked non-profit organisations (NPOs) or new shelf non-revenue corporations (NPCs) without having financial track records were used to make an application for funding.

In certain instances, almost similar economic statements had been created for unrelated organisations, frequently with just the names in the organisations adjusted, GroundUp’s investigation identified.

Files submitted by genuine NPCs for unsuccessful grant purposes were being usually employed by new or hijacked NPCs and NPOs to apply for funding. The details and paperwork of your unsuccessful applicants had been provided by senior Lottery officers to your dodgy applicants.

With cursory or - normally - no verification, these dodgy applicants were awarded an incredible number of rands in grants. In some cases additional tranches of funds were compensated out devoid of Substantially checking on the development of tasks.

The vast majority of such grants ended up built by using proactive funding, which was at the guts with the looting on the lottery. Proactive funding allowed the Minister of Trade, Marketplace and Level of competition, or even the NLC along side its board, to detect leads to to fund with no initial necessitating an software. This was stopped every time a new NLC board was appointed.

R2-billion in grants less than investigation
SIU head Advocate Andy Mothibi said the SIU was presently investigating grants valued at more than R2-billion, along with the unit was still on a regular basis getting suggestion-offs about much more corruption.

He instructed MPs which the SIU’s investigation had been broken into 3 phases: the first, which has been finalised, probed dodgy grants amounting to R280-million, and the next, also accomplished, associated R247-million. In the third phase, resulting from be finalised at the conclusion of the 12 months, the SIU is investigating grants valued at almost R906-million, involving 40 NPOs and NPCs, Mothibi explained.

He claimed which the SIU would utilize “before long” with the Presidential Proclamation, at first granted in Oct 2020 to research corruption involving lottery grants, being prolonged to include procurement from the NLC.

The SIU investigation experienced to date triggered 13 disciplinary referrals into the NLC, and administrative referrals to SARS and the Companies and Mental Qualities Fee to blacklist individuals implicated during the looting. Complaints involving two persons were referred for the Authorized Observe Council and also the SA Institute of Chartered Accountants.

The SIU had noticed a number of tendencies beneath the former NLC board and govt - lots of whom are actually implicated in looting - Mothibi told MPs.

This incorporated a “pattern of collusion in between NLC officials and NPOs and NPCs”, “the hijacking of NPOs and NPCs” and “general maladministration in the acceptance of grants,” he claimed.

Sluggish progress by the NPA
The SIU has frozen homes, Houses, vehicles along with other belongings well worth tens of tens of millions that were purchased with lottery resources, but MPs expressed problem at sluggish development in prosecuting These involved with the looting. (The SIU is mandated only to Get better assets purchased with stolen condition cash and doesn't have prosecuting powers).

Though the SIU has referred fifteen issues towards the NPA, up to now only two individuals have been brought ahead of a courtroom. Two Adult men appeared in court docket in Kimberley a short while ago in reference to misappropriated cash collected for any task to overcome gender-based mostly violence.

In August 2022 Christopher Tshivule was sentenced to eight years in jail for his element inside a R1.five-million lottery grant fraud. Expenses against two people today charged with him, who the SIU has referred to as “kingpins” within the corruption that overwhelmed the NLC, were being dropped.

Big-Basic Mmeli Makinyane, the performing divisional commissioner for priority offences, instructed MPs that the Hawks have been now investigating 16 lottery corruption-connected cases. One more one particular - the Kimberley make a difference - is right before a court and two are already despatched to your NPA for a call to prosecute. An extra 5 cases are being investigated through the SAPS detective and forensic expert services, he said.

Explaining the reasons to the delay in prosecutions, NPA Deputy Countrywide Director Rodney de Kock explained Portion of The main reason was which the Hawks had to do further more investigations whenever they obtained dossiers with the SIU.

“In essence, the investigations undertaken by the SIU will not fulfill criminal expectations for prosecutions.”

Hence, the NPA experienced to work with investigators during the DPCI (the Hawks) and SAPS to conduct legal investigations and make sure the evidence meets criminal prosecution expectations, he claimed, incorporating: “That said, the perform in the SIU is vital and contributes tremendously to this process.”

De Kock said which the SIU’s investigation “generally results in various referrals. The referrals may possibly in the end bring about a single docket and a person court scenario.”

He stated that 12 issues, that are “around eighty five% entire”, have been remaining jointly investigated by the Hawks as well as the SIU’s Specialised Economic Functions Unit. (The majority of these conditions, 7 of which were being lodged in 2020, contain previous NLC chief working officer Phillemon Letwaba, who resigned less than a cloud in 2022, and Pretoria attorney Leslie Ramulifho.)

De Kock explained the NPA confronted various “worries” in prosecuting conditions. These, he claimed, involved

the lapse of time among when the offences ended up dedicated as well as the issuing of the Presidential Proclamation on 1 November 2020;
“unavailability of witnesses and/or documentary proof” (Before this year, the SIU advised the committee that critical files needed in some prosecutions had been deleted through the NLC computer program or had gone missing from Metrofile, a warehouse exactly where copies of documents are archived and saved);
The point that some implicated people today remain employed by NLC; and
A obstacle to your legality on the Presidential Proclamation by former NLC chairperson Alfred Nevhutanda.
“The NPA is dedicated to making certain finalisation in these issues. To this conclude, a group of dedicated prosecutors has long been allocated to supervise all NLC issues at present less than investigation,” de Kock explained. “Issues are handled being a precedence. Once [the] investigations are accomplished, the NPA could make a call.”

What the companies say (or don’t)
GroundUp was only in the position to get comment from among the list of 5 businesses accused through the SIU in Parliament of manufacturing fraudulent once-a-year monetary statements,TTP Consulting.

Aubrey Moeng, one among TTP’s two directors, mentioned in an email in reaction to thoughts: “Because of client confidentiality, we wish to recommend that TTP Consulting will not be ready to disclose shoppers’ money confidential info with the general public or media … with no consent on the client or maybe a legal reason.”

The corporate is really a “lover” of several state entities, which include SARS and 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 businesses, responded to emailed queries. The organization is deregistered from the CIPC for failing to post fiscal statements considering that 2021.

The sole director of Mageba Ntuli Investing and Consulting Support, Patrick Zulu, died a few a long time back, In accordance with Formal records. The corporate was deregistered from the CIPC for failing to submit money statements because 2021.

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

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

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