The accountants who helped loot the Lottery

The accountants who helped loot the Lottery

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The Unique Investigating Device has discovered 5 accounting corporations that assisted loot Lottery cash. Graphic: Lisa Nelson

The Particular Investigating Device has identified 5 accounting and auditing firms that assisted non-earnings companies loot Lottery income intended for “great leads to”.
The accounting corporations compiled fraudulent financial statements utilized by these corporations to make an application for Lottery funding, the SIU informed Parliament.
Performing chief countrywide investigations officer Zodwa Xesibe explained the SIU would just take motion to acquire these corporations blacklisted.
A 4-calendar year probe from the หวย วัน นี้ Unique Investigating Unit (SIU) has uncovered five accounting and auditing companies that aided dodgy non-profit firms loot many many rands designed for “superior will cause” from your Lottery.

These companies were described by the SIU as “Specialist enablers,” who “compiled fraudulent economical statements” that were used by the businesses to make an application for Lottery funding.

The 5 corporations ended up named in Parliament from the SIU’s acting Main national investigations officer Zodwa Xesibe. These are TTP Consulting, Dzata Accountants, Magodi Consulting, Mageba Ntuli Consulting and Tafta Consulting and Accounting Expert services.

Fraudulent financials produced by these 5 accounting corporations helped just about forty companies get their arms on lottery funding, based on the SIU presentation.

Based upon a Software that contains knowledge with all lottery grants since 2002, these organizations got in excess of R314-million in funding.

“These NPCs had been funded through the National Lotteries Fee (NLC) although the resources weren't utilised for their supposed objective,” Xesibe told Parliament’s Trade, Industry and Level of competition Portfolio Committee final 7 days.

The SIU, the Hawks as well as the Nationwide Prosecuting Authority (NPA) were being in Parliament to report back to the committee on progress in bringing persons and organisations associated with looting the lottery to reserve.

Xesibe told GroundUp that the SIU meant to lodge complaints in opposition to the accounting companies included and was examining if these firms had been registered and, In that case, with which Qualified bodies.

“We would like these corporations to be blacklisted,” she advised GroundUp.

To qualify for Lottery funding, an organisation was needed to make two many years of once-a-year fiscal statements, Xesibe spelled out in Parliament.

However, being an ongoing 6-yr investigation into lottery corruption by GroundUp has exposed, hijacked non-financial gain organisations (NPOs) or new shelf non-income organizations (NPCs) without economical observe data have been accustomed to make an application for funding.

In certain instances, Nearly identical financial statements ended up made for unrelated organisations, frequently with just the names with the organisations adjusted, GroundUp’s investigation located.

Documents submitted by genuine NPCs for unsuccessful grant programs were being often utilized by new or hijacked NPCs and NPOs to make an application for funding. The main points and files with the unsuccessful applicants were supplied by senior Lottery officers towards the dodgy applicants.

With cursory or - usually - no verification, these dodgy applicants ended up awarded countless rands in grants. Often added tranches of funds were being paid out out without having Significantly examining over the development of projects.

The overwhelming majority of those grants have been created via proactive funding, which was at the center from the looting of your lottery. Proactive funding permitted the Minister of Trade, Field and Levels of competition, or the NLC in conjunction with its board, to discover causes to fund without having 1st necessitating an application. This was stopped when a new NLC board was appointed.

R2-billion in grants under investigation
SIU head Advocate Andy Mothibi reported the SIU was now investigating grants valued at around R2-billion, as well as unit was nonetheless frequently receiving idea-offs about far more corruption.

He advised MPs that the SIU’s investigation were damaged into 3 phases: the primary, that has been finalised, probed dodgy grants amounting to R280-million, and the second, also done, concerned R247-million. In the third period, due to be finalised at the end of the 12 months, the SIU is investigating grants valued at Pretty much R906-million, involving 40 NPOs and NPCs, Mothibi explained.

He reported that the SIU would use “before long” with the Presidential Proclamation, at first granted in Oct 2020 to analyze corruption involving lottery grants, to be prolonged to incorporate procurement via the NLC.

The SIU investigation experienced to date resulted in 13 disciplinary referrals for the NLC, and administrative referrals to SARS and the Companies and Mental Houses Commission to blacklist people today implicated during the looting. Problems involving two persons had been referred to the Lawful Follow Council and also the SA Institute of Chartered Accountants.

The SIU experienced noticed many traits beneath the former NLC board and executive - most of whom have already been implicated in looting - Mothibi instructed MPs.

This bundled a “development of collusion in between NLC officials and NPOs and NPCs”, “the hijacking of NPOs and NPCs” and “typical maladministration inside the approval of grants,” he said.

Gradual progress via the NPA
The SIU has frozen residences, properties, cars as well as other assets worthy of tens of tens of millions that were acquired with lottery cash, but MPs expressed problem at slow development in prosecuting those involved in the looting. (The SIU is mandated only to Get better assets acquired with stolen state cash and does not have prosecuting powers).

Though the SIU has referred 15 matters to your NPA, up to now only two people have been brought right before a court docket. Two Males appeared in courtroom in Kimberley recently in connection with misappropriated cash gathered for just a undertaking to overcome gender-centered violence.

In August 2022 Christopher Tshivule was sentenced to 8 a long time in prison for his element in a very R1.5-million lottery grant fraud. Expenses in opposition to two folks charged with him, who the SIU has called “kingpins” from the corruption that overcome the NLC, were dropped.

Important-Typical Mmeli Makinyane, the acting divisional commissioner for precedence offences, informed MPs which the Hawks had been currently investigating 16 lottery corruption-similar circumstances. A different a single - the Kimberley make any difference - is just before a courtroom and two are actually despatched for the NPA for a choice to prosecute. An additional 5 instances are now being investigated because of the SAPS detective and forensic solutions, he explained.

Outlining The explanations to the delay in prosecutions, NPA Deputy National Director Rodney de Kock stated A part of the reason was that the Hawks needed to do even further investigations when they acquired dossiers in the SIU.

“In essence, the investigations carried out because of the SIU usually do not fulfill criminal standards for prosecutions.”

For that reason, the NPA experienced to operate with investigators within the DPCI (the Hawks) and SAPS to conduct legal investigations and ensure that the evidence fulfills legal prosecution standards, he stated, including: “That said, the perform in the SIU is significant and contributes enormously to this method.”

De Kock explained that the SIU’s investigation “normally ends in several referrals. The referrals may in the long run lead to a person docket and one particular court situation.”

He claimed that 12 matters, which happen to be “around 85% entire”, were currently being jointly investigated via the Hawks and also the SIU’s Specialised Economic Functions Device. (Most of these instances, seven of which were lodged in 2020, involve previous NLC Main functioning officer Phillemon Letwaba, who resigned under a cloud in 2022, and Pretoria attorney Leslie Ramulifho.)

De Kock claimed the NPA faced numerous “problems” in prosecuting instances. These, he said, bundled

the lapse of your time involving once the offences were fully commited along with the issuing on the Presidential Proclamation on one November 2020;
“unavailability of witnesses and/or documentary evidence” (Before this yr, the SIU told the committee that essential files required in a few prosecutions were deleted through the NLC computer process or had absent lacking from Metrofile, a warehouse where copies of documents are archived and stored);
The truth that some implicated men and women remain utilized by NLC; and
A problem on the legality of your Presidential Proclamation by previous NLC chairperson Alfred Nevhutanda.
“The NPA is devoted to guaranteeing finalisation in these matters. To this conclusion, a staff of focused prosecutors has actually been allocated to supervise all NLC matters at present under investigation,” de Kock reported. “Matters are managed like a precedence. After [the] investigations are accomplished, the NPA could make a choice.”

What the businesses say (or don’t)
GroundUp was only capable of get remark from one of several five firms accused from the SIU in Parliament of producing fraudulent yearly economical statements,TTP Consulting.

Aubrey Moeng, one of TTP’s two directors, stated in an e-mail in response to concerns: “Resulting from shopper confidentiality, we wish to recommend that TTP Consulting is not really prepared to divulge customers’ financial private data with the public or media … with no consent on the client or perhaps a lawful cause.”

The organization is usually a “spouse” of quite a few state entities, which include SARS along with the CIPC, Based on its Internet site.

Neither of The 2 administrators of Dzata Accountants, that are both of those detailed as inactive to the CIPC sign up of organizations, responded to emailed thoughts. The company is deregistered through the CIPC for failing to submit economical statements considering the fact that 2021.

The only real director of Mageba Ntuli Buying and selling and Consulting Support, Patrick Zulu, died three years in the past, according to Formal records. The corporate was deregistered from the CIPC for failing to submit money statements since 2021.

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

GroundUp was not able to come across any listing for Tafta Consulting and Accounting Solutions Together with the CIPC. We ended up also struggling to trace any of the company’s administrators to request comment.

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