The accountants who assisted loot the Lottery
The accountants who assisted loot the Lottery
Blog Article
The Unique Investigating Device has determined five accounting corporations that assisted loot Lottery resources. Graphic: Lisa Nelson
The Specific Investigating Device has recognized five accounting and auditing corporations that helped non-earnings corporations loot Lottery cash meant for “great leads to”.
The accounting firms compiled fraudulent monetary statements used by these providers to apply for Lottery funding, the SIU informed Parliament.
Performing chief nationwide investigations officer Zodwa Xesibe explained the SIU would get action to obtain these companies blacklisted.
A four-calendar year probe by the เช ค หวย Distinctive Investigating Unit (SIU) has exposed 5 accounting and auditing firms that served dodgy non-income firms loot countless many rands intended for “good will cause” from your Lottery.
These companies ended up explained because of the SIU as “Skilled enablers,” who “compiled fraudulent economical statements” which were utilized by the businesses to submit an application for Lottery funding.
The five businesses have been named in Parliament from the SIU’s acting chief nationwide investigations officer Zodwa Xesibe. They are really TTP Consulting, Dzata Accountants, Magodi Consulting, Mageba Ntuli Consulting and Tafta Consulting and Accounting Solutions.
Fraudulent financials produced by these five accounting firms helped practically 40 firms get their fingers on lottery funding, according to the SIU presentation.
Determined by a Resource made up of facts with all lottery grants since 2002, these companies bought around R314-million in funding.
“These NPCs ended up funded through the Countrywide Lotteries Fee (NLC) even so the money weren't made use of for their supposed function,” Xesibe informed Parliament’s Trade, Field and Competition Portfolio Committee last week.
The SIU, the Hawks and also the Nationwide Prosecuting Authority (NPA) were in Parliament to report to the committee on development in bringing people and organisations associated with looting the lottery to ebook.
Xesibe told GroundUp that the SIU intended to lodge issues versus the accounting corporations associated and was examining if these corporations were being registered and, If that's the case, with which Skilled bodies.
“We want these businesses for being blacklisted,” she informed GroundUp.
To qualify for Lottery funding, an organisation was needed to generate two years of yearly financial statements, Xesibe spelled out in Parliament.
Nonetheless, being an ongoing 6-year investigation into lottery corruption by GroundUp has unveiled, hijacked non-gain organisations (NPOs) or new shelf non-revenue providers (NPCs) without any money keep track of documents were used to apply for funding.
In a few cases, Just about similar money statements were being produced for unrelated organisations, usually with only the names in the organisations transformed, GroundUp’s investigation located.
Paperwork submitted by genuine NPCs for unsuccessful grant purposes were being often employed by new or hijacked NPCs and NPOs to make an application for funding. The small print and files of your unsuccessful applicants ended up supplied by senior Lottery officers on the dodgy applicants.
With cursory or - frequently - no verification, these dodgy applicants were being awarded many rands in grants. From time to time further tranches of resources have been compensated out with out Substantially examining on the progress of assignments.
The vast majority of such grants were being produced through proactive funding, which was at the guts with the looting on the lottery. Proactive funding allowed the Minister of Trade, Business and Level of competition, or even the NLC in conjunction with its board, to determine results in to fund devoid of very first demanding an application. This was stopped each time a new NLC board was appointed.
R2-billion in grants less than investigation
SIU head Advocate Andy Mothibi mentioned the SIU was currently investigating grants valued at in excess of R2-billion, and also the unit was continue to often receiving tip-offs about far more corruption.
He instructed MPs which the SIU’s investigation were damaged into 3 phases: the initial, which has been finalised, probed dodgy grants amounting to R280-million, and the 2nd, also done, involved R247-million. In the 3rd section, due to be finalised at the conclusion of the year, the SIU is investigating grants valued at Nearly R906-million, involving forty NPOs and NPCs, Mothibi stated.
He reported that the SIU would utilize “shortly” to the Presidential Proclamation, at first granted in October 2020 to analyze corruption involving lottery grants, for being prolonged to include procurement because of the NLC.
The SIU investigation experienced up to now brought about thirteen disciplinary referrals to the NLC, and administrative referrals to SARS and the Companies and Intellectual Houses Fee to blacklist individuals implicated during the looting. Grievances involving two people today had been referred into the Legal Follow Council as well as SA Institute of Chartered Accountants.
The SIU experienced observed several trends under the prior NLC board and executive - most of whom have been implicated in looting - Mothibi explained to MPs.
This provided a “trend of collusion involving NLC officials and NPOs and NPCs”, “the hijacking of NPOs and NPCs” and “standard maladministration in the approval of grants,” he reported.
Slow progress with the NPA
The SIU has frozen households, properties, vehicles and various assets worthy of tens of tens of millions which were acquired with lottery resources, but MPs expressed issue at gradual development in prosecuting These associated with the looting. (The SIU is mandated only to recover assets acquired with stolen point out cash and does not have prosecuting powers).
Even though the SIU has referred fifteen matters on the NPA, thus far only two folks have been brought in advance of a court docket. Two Adult males appeared in court docket in Kimberley a short while ago in connection with misappropriated money gathered for a project to combat gender-based violence.
In August 2022 Christopher Tshivule was sentenced to eight yrs in prison for his section within a R1.five-million lottery grant fraud. Fees against two people today charged with him, who the SIU has called “kingpins” from the corruption that overwhelmed the NLC, ended up dropped.
Significant-Standard Mmeli Makinyane, the performing divisional commissioner for priority offences, advised MPs which the Hawks had been at the moment investigating 16 lottery corruption-similar instances. One more just one - the Kimberley issue - is just before a courtroom and two happen to be despatched into the NPA for a choice to prosecute. An extra five instances are being investigated because of the SAPS detective and forensic expert services, he reported.
Describing The explanations for that delay in prosecutions, NPA Deputy Countrywide Director Rodney de Kock explained Portion of The main reason was which the Hawks needed to do further more investigations if they received dossiers from your SIU.
“In essence, the investigations undertaken with the SIU will not fulfill felony criteria for prosecutions.”
Consequently, the NPA experienced to operate with investigators in the DPCI (the Hawks) and SAPS to perform felony investigations and ensure that the proof fulfills criminal prosecution requirements, he stated, introducing: “Having said that, the do the job of your SIU is crucial and contributes drastically to this method.”
De Kock stated the SIU’s investigation “normally results in several referrals. The referrals may perhaps in the end cause just one docket and a person court case.”
He said that 12 issues, that are “around 85% full”, had been becoming jointly investigated by the Hawks and also the SIU’s Specialised Financial Operations Device. (These types of circumstances, 7 of which ended up lodged in 2020, include previous NLC chief working officer Phillemon Letwaba, who resigned under a cloud in 2022, and Pretoria attorney Leslie Ramulifho.)
De Kock reported the NPA faced many “worries” in prosecuting circumstances. These, he said, integrated
the lapse of time amongst in the event the offences were fully commited and the issuing of the Presidential Proclamation on 1 November 2020;
“unavailability of witnesses and/or documentary proof” (Previously this 12 months, the SIU advised the committee that important files wanted in some prosecutions were deleted with the NLC Laptop method or experienced gone missing from Metrofile, a warehouse where copies of paperwork are archived and saved);
the fact that some implicated persons remain employed by NLC; and
A problem to your legality of the Presidential Proclamation by former NLC chairperson Alfred Nevhutanda.
“The NPA is devoted to guaranteeing finalisation in these issues. To this conclusion, a workforce of dedicated prosecutors continues to be allocated to oversee all NLC issues now under investigation,” de Kock said. “Issues are managed being a priority. As soon as [the] investigations are completed, the NPA could make a choice.”
What the businesses say (or don’t)
GroundUp was only ready to get comment from among the 5 organizations accused from the SIU in Parliament of manufacturing fraudulent once-a-year fiscal statements,TTP Consulting.
Aubrey Moeng, among TTP’s two directors, claimed within an e-mail in reaction to questions: “On account of shopper confidentiality, we want to suggest that TTP Consulting will not be prepared to disclose shoppers’ financial confidential info with the public or media … without the consent of the shopper or a lawful motive.”
The corporate is usually a “lover” of many state entities, including SARS as well as CIPC, As outlined by its Site.
Neither of The 2 directors of Dzata Accountants, who're both shown as inactive around the CIPC sign-up of companies, responded to emailed queries. The corporation is deregistered via the CIPC for failing to submit monetary statements due to the fact 2021.
The only real director of Mageba Ntuli Investing and Consulting Company, Patrick Zulu, died a few years back, according to Formal data. The business was deregistered through the CIPC for failing to submit economical statements considering the fact that 2021.
Matamela Magodi, the only director of Magodi Consultants, didn't respond to questions emailed to him.
GroundUp was not able to discover any listing for Tafta Consulting and Accounting Services Along with the CIPC. We had been also not able to trace any of the company’s directors to ask for comment.