The Unique Investigating Device has determined five accounting companies that helped loot Lottery cash. Graphic: Lisa Nelson
The Specific Investigating Device has determined 5 accounting and auditing companies that served non-earnings businesses loot Lottery dollars intended for “very good causes”.
The accounting firms compiled fraudulent economic statements utilized by these firms to make an application for Lottery funding, the SIU explained to Parliament.
Performing Main countrywide investigations officer Zodwa Xesibe claimed the SIU would acquire action to get these firms blacklisted.
A 4-yr probe through the ผล หวย Distinctive Investigating Device (SIU) has uncovered 5 accounting and auditing corporations that served dodgy non-financial gain providers loot many hundreds of countless rands designed for “superior will cause” through the Lottery.
These firms were being described by the SIU as “Experienced enablers,” who “compiled fraudulent money statements” that were employed by the companies to make an application for Lottery funding.
The 5 businesses ended up named in Parliament from the SIU’s acting chief nationwide investigations officer Zodwa Xesibe. They are TTP Consulting, Dzata Accountants, Magodi Consulting, Mageba Ntuli Consulting and Tafta Consulting and Accounting Expert services.
Fraudulent financials made by these five accounting firms aided just about 40 firms get their fingers on lottery funding, according to the SIU presentation.
Dependant on a Device containing knowledge with all lottery grants because 2002, these firms acquired in excess of R314-million in funding.
“These NPCs ended up funded via the Countrywide Lotteries Fee (NLC) although the cash were not employed for their supposed function,” Xesibe informed Parliament’s Trade, Business and Opposition Portfolio Committee last 7 days.
The SIU, the Hawks and also the Countrywide Prosecuting Authority (NPA) had been in Parliament to report back to the committee on development in bringing individuals and organisations linked to looting the lottery to e-book.
Xesibe told GroundUp which the SIU meant to lodge complaints towards the accounting corporations concerned and was examining if these firms were registered and, In that case, with which Expert bodies.
“We would like these organizations for being blacklisted,” she explained to GroundUp.
To qualify for Lottery funding, an organisation was necessary to make two decades of once-a-year economical statements, Xesibe stated in Parliament.
However, being an ongoing six-yr investigation into lottery corruption by GroundUp has exposed, hijacked non-gain organisations (NPOs) or new shelf non-financial gain organizations (NPCs) without having money observe records were being accustomed to submit an application for funding.
In some cases, Pretty much equivalent financial statements were created for unrelated organisations, frequently with only the names of your organisations improved, GroundUp’s investigation uncovered.
Paperwork submitted by genuine NPCs for unsuccessful grant purposes have been often employed by new or hijacked NPCs and NPOs to apply for funding. The main points and documents with the unsuccessful applicants had been provided by senior Lottery officers towards the dodgy applicants.
With cursory or - generally - no verification, these dodgy applicants were being awarded an incredible number of rands in grants. Sometimes further tranches of cash were being compensated out without Considerably checking about the progress of tasks.
The vast majority of such grants were being built by using proactive funding, which was at the center in the looting in the lottery. Proactive funding authorized the Minister of Trade, Marketplace and Competition, or perhaps the NLC along side its board, to discover leads to to fund without the need of 1st demanding an application. This was stopped every time a new NLC board was appointed.
R2-billion in grants under investigation
SIU head Advocate Andy Mothibi explained the SIU was currently investigating grants valued at above R2-billion, as well as device was nonetheless often obtaining suggestion-offs about additional corruption.
He explained to MPs which the SIU’s investigation were broken into three phases: the very first, which has been finalised, probed dodgy grants amounting to R280-million, and the 2nd, also done, included R247-million. While in the third section, resulting from 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 reported.
He explained that the SIU would implement “before long” to the Presidential Proclamation, at first granted in October 2020 to research corruption involving lottery grants, to generally be extended to include procurement because of the NLC.
The SIU investigation experienced up to now brought about 13 disciplinary referrals to your NLC, and administrative referrals to SARS and the Companies and Intellectual Qualities Fee to blacklist folks implicated during the looting. Grievances involving two persons were referred to your Lawful Practice Council as well as the SA Institute of Chartered Accountants.
The SIU had noticed various developments under the former NLC board and govt - a lot of whom are implicated in looting - Mothibi instructed MPs.
This involved a “craze of collusion among NLC officials and NPOs and NPCs”, “the hijacking of NPOs and NPCs” and “normal maladministration while in the approval of grants,” he claimed.
Slow progress via the NPA
The SIU has frozen properties, Attributes, cars and various assets well worth tens of thousands and thousands which were purchased with lottery money, but MPs expressed problem at sluggish progress in prosecuting These involved in the looting. (The SIU is mandated only to recover assets bought with stolen state resources and doesn't have prosecuting powers).
When the SIU has referred fifteen issues on the NPA, to date only two individuals have been brought before a court. Two Gentlemen appeared in court in Kimberley not too long ago in connection with misappropriated funds gathered for your undertaking to combat gender-based violence.
In August 2022 Christopher Tshivule was sentenced to 8 yrs in prison for his portion inside a R1.five-million lottery grant fraud. Rates towards two persons billed with him, who the SIU has described as “kingpins” from the corruption that overwhelmed the NLC, have been dropped.
Important-Common Mmeli Makinyane, the acting divisional commissioner for priority offences, advised MPs which the Hawks had been at the moment investigating 16 lottery corruption-relevant scenarios. A further a person - the Kimberley matter - is prior to a court docket and two have been despatched to your NPA for a choice to prosecute. A further five instances are increasingly being investigated with the SAPS detective and forensic solutions, he reported.
Outlining the reasons with the delay in prosecutions, NPA Deputy Nationwide Director Rodney de Kock stated A part of The key reason why was that the Hawks had to do even further investigations when they obtained dossiers from the SIU.
“In essence, the investigations carried out by the SIU do not fulfill felony expectations for prosecutions.”
For that reason, the NPA had to operate with investigators from the DPCI (the Hawks) and SAPS to conduct felony investigations and be certain that the proof meets felony prosecution expectations, he stated, introducing: “That said, the operate from the SIU is important and contributes enormously to this process.”
De Kock explained which the SIU’s investigation “usually brings about numerous referrals. The referrals may well ultimately result in a single docket and a single courtroom situation.”
He stated that 12 issues, which happen to be “roughly 85% total”, had been currently being jointly investigated because of the Hawks plus the SIU’s Specialised Financial Operations Device. (A large number of conditions, 7 of which have been lodged in 2020, entail previous NLC Main operating officer Phillemon Letwaba, who resigned underneath a cloud in 2022, and Pretoria lawyer Leslie Ramulifho.)
De Kock explained the NPA confronted a number of “troubles” in prosecuting circumstances. These, he claimed, bundled
the lapse of your time concerning when the offences were committed and the issuing of the Presidential Proclamation on 1 November 2020;
“unavailability of witnesses and/or documentary proof” (Previously this yr, the SIU told the committee that key files essential in some prosecutions were deleted through the NLC Computer system technique or had long gone missing from Metrofile, a warehouse where by copies of paperwork are archived and stored);
the fact that some implicated people today are still used by NLC; and
A challenge to your legality in the Presidential Proclamation by previous NLC chairperson Alfred Nevhutanda.
“The NPA is committed to making certain finalisation in these issues. To this close, a crew of focused prosecutors continues to be allocated to supervise all NLC issues currently beneath investigation,” de Kock claimed. “Issues are managed being a priority. After [the] investigations are accomplished, the NPA can make a decision.”
What the companies say (or don’t)
GroundUp was only in a position to get remark from on the list of five businesses accused by the SIU in Parliament of producing fraudulent annual economic statements,TTP Consulting.
Aubrey Moeng, one among TTP’s two directors, reported in an email in reaction to concerns: “Because of shopper confidentiality, we desire to recommend that TTP Consulting is just not ready to divulge consumers’ financial private data with the public or media … without the consent with the shopper or even a legal cause.”
The corporation is usually a “partner” of several point out entities, which include SARS as well as CIPC, In accordance with its Web site.
Neither of The 2 directors of Dzata Accountants, who are both mentioned as inactive to the CIPC sign-up of firms, responded to emailed concerns. The corporation has become deregistered from the CIPC for failing to submit financial statements due to the fact 2021.
The sole director of Mageba Ntuli Buying and selling and Consulting Assistance, Patrick Zulu, died a few years ago, In keeping with Formal records. The corporate was deregistered because of 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 issues emailed to him.
GroundUp was not able to locate any listing for Tafta Consulting and Accounting Companies Together with the CIPC. We had been also unable to trace any of the corporation’s directors to ask for remark.