The accountants who helped loot the Lottery

The accountants who helped loot the Lottery

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The Special Investigating Unit has identified 5 accounting corporations that aided loot Lottery money. Graphic: Lisa Nelson

The Specific Investigating Unit has identified five accounting and auditing firms that served non-financial gain corporations loot Lottery money meant for “good triggers”.
The accounting companies compiled fraudulent fiscal statements utilized by these providers to make an application for Lottery funding, the SIU explained to Parliament.
Acting Main national investigations officer Zodwa Xesibe said the SIU would acquire action to possess these firms blacklisted.
A four-12 months probe by the หวย วัน นี้ Unique Investigating Unit (SIU) has exposed five accounting and auditing corporations that helped dodgy non-financial gain organizations loot countless countless rands designed for “superior brings about” through the Lottery.

These companies were explained because of the SIU as “professional enablers,” who “compiled fraudulent economical statements” that were employed by the businesses to submit an application for Lottery funding.

The five companies were being named in Parliament from the SIU’s acting chief nationwide investigations officer Zodwa Xesibe. These are TTP Consulting, Dzata Accountants, Magodi Consulting, Mageba Ntuli Consulting and Tafta Consulting and Accounting Expert services.

Fraudulent financials made by these five accounting companies assisted just about 40 companies get their arms on lottery funding, based on the SIU presentation.

According to a tool that contains knowledge with all lottery grants given that 2002, these businesses received over R314-million in funding.

“These NPCs ended up funded by the Nationwide Lotteries Fee (NLC) although the resources weren't utilized for their meant reason,” Xesibe informed Parliament’s Trade, Marketplace and Opposition Portfolio Committee very last 7 days.

The SIU, the Hawks as well as the Nationwide Prosecuting Authority (NPA) have been in Parliament to report to the committee on development in bringing persons and organisations involved with looting the lottery to ebook.

Xesibe informed GroundUp which the SIU intended to lodge complaints against the accounting corporations included and was examining if these firms had been registered and, If that's so, with which Skilled bodies.

“We would like these businesses to get blacklisted,” she explained to GroundUp.

To qualify for Lottery funding, an organisation was needed to produce two a long time of yearly economic statements, Xesibe discussed in Parliament.

However, being an ongoing 6-12 months investigation into lottery corruption by GroundUp has unveiled, hijacked non-earnings organisations (NPOs) or new shelf non-revenue companies (NPCs) without having fiscal track data have been utilized to make an application for funding.

In some instances, Pretty much similar economic statements were being generated for unrelated organisations, often with only the names of the organisations adjusted, GroundUp’s investigation located.

Files submitted by real NPCs for unsuccessful grant applications were being typically utilized by new or hijacked NPCs and NPOs to submit an application for funding. The details and paperwork from the unsuccessful applicants were being supplied by senior Lottery officials for the dodgy applicants.

With cursory or - generally - no verification, these dodgy applicants were being awarded numerous rands in grants. At times supplemental tranches of funds had been paid out devoid of A great deal examining about the progress of initiatives.

The overwhelming majority of these grants ended up created by using proactive funding, which was at the heart of the looting on the lottery. Proactive funding authorized the Minister of Trade, Field and Levels of competition, or the NLC along with its board, to discover leads to to fund without the need of initial necessitating an application. This was stopped every time a new NLC board was appointed.

R2-billion in grants less than investigation
SIU head Advocate Andy Mothibi stated the SIU was at present investigating grants valued at above R2-billion, as well as the device was continue to regularly obtaining suggestion-offs about more corruption.

He instructed MPs the SIU’s investigation were broken into a few phases: the primary, which has been finalised, probed dodgy grants amounting to R280-million, and the next, also completed, included R247-million. Inside the 3rd section, resulting from be finalised at the end of the 12 months, the SIU is investigating grants valued at Just about R906-million, involving forty NPOs and NPCs, Mothibi stated.

He explained the SIU would apply “soon” to the Presidential Proclamation, at first granted in Oct 2020 to investigate corruption involving lottery grants, to get extended to include procurement through the NLC.

The SIU investigation had up to now resulted in 13 disciplinary referrals for the NLC, and administrative referrals to SARS and the Companies and Mental Homes Fee to blacklist people today implicated from the looting. Grievances involving two people today had been referred towards the Authorized Follow Council and the SA Institute of Chartered Accountants.

The SIU experienced observed various trends under the past NLC board and govt - most of whom are implicated in looting - Mothibi told MPs.

This incorporated a “craze of collusion concerning NLC officials and NPOs and NPCs”, “the hijacking of NPOs and NPCs” and “basic maladministration in the approval of grants,” he said.

Gradual development from the NPA
The SIU has frozen properties, Homes, cars and trucks along with other assets value tens of millions which were bought with lottery money, but MPs expressed issue at gradual progress in prosecuting These associated with the looting. (The SIU is mandated only to Get better belongings bought with stolen state funds and doesn't have prosecuting powers).

When the SIU has referred 15 matters towards the NPA, up to now only two people have been brought ahead of a court. Two Adult males appeared in court in Kimberley recently in connection with misappropriated funds gathered to get a undertaking to battle gender-centered violence.

In August 2022 Christopher Tshivule was sentenced to eight many years in prison for his portion inside of a R1.five-million lottery grant fraud. Expenses from two people charged with him, who the SIU has described as “kingpins” from the corruption that overcome the NLC, ended up dropped.

Big-Normal Mmeli Makinyane, the acting divisional commissioner for precedence offences, advised MPs that the Hawks were being now investigating sixteen lottery corruption-connected cases. A further one particular - the Kimberley issue - is before a courtroom and two have already been sent to your NPA for a call to prosecute. A further five conditions are now being investigated from the SAPS detective and forensic products and services, he mentioned.

Outlining The explanations with the hold off in prosecutions, NPA Deputy National Director Rodney de Kock said A part of The explanation was which the Hawks had to do even further investigations if they acquired dossiers from your SIU.

“In essence, the investigations carried out with the SIU will not satisfy prison specifications for prosecutions.”

Consequently, the NPA experienced to work with investigators while in the DPCI (the Hawks) and SAPS to perform criminal investigations and make sure the evidence meets legal prosecution benchmarks, he stated, including: “That said, the operate on the SIU is significant and contributes considerably to this process.”

De Kock mentioned that the SIU’s investigation “often brings about a number of referrals. The referrals may perhaps eventually lead to one particular docket and 1 court docket situation.”

He stated that twelve matters, which happen to be “somewhere around 85% entire”, had been staying jointly investigated through the Hawks plus the SIU’s Specialised Financial Functions Device. (Most of these situations, 7 of which had been lodged in 2020, entail former NLC chief functioning officer Phillemon Letwaba, who resigned below a cloud in 2022, and Pretoria lawyer Leslie Ramulifho.)

De Kock stated the NPA faced several “challenges” in prosecuting cases. These, he stated, integrated

the lapse of time between in the event the offences ended up dedicated along with the issuing from the Presidential Proclamation on one November 2020;
“unavailability of witnesses and/or documentary evidence” (Before this year, the SIU instructed the committee that crucial paperwork essential in some prosecutions had been deleted with the NLC Laptop procedure or experienced gone missing from Metrofile, a warehouse the place copies of files are archived and saved);
The truth that some implicated men and women remain utilized by NLC; and
A problem into the legality of your Presidential Proclamation by previous NLC chairperson Alfred Nevhutanda.
“The NPA is dedicated to making sure finalisation in these issues. To this conclude, a group of focused prosecutors has long been allocated to supervise all NLC matters currently beneath investigation,” de Kock said. “Matters are managed as being a precedence. Once [the] investigations are concluded, the NPA will make a decision.”

What the companies say (or don’t)
GroundUp was only ready to get remark from one of several 5 businesses accused with the SIU in Parliament of manufacturing fraudulent yearly money statements,TTP Consulting.

Aubrey Moeng, amongst TTP’s two administrators, stated in an email in response to concerns: “On account of customer confidentiality, we would like to recommend that TTP Consulting will not be ready to divulge clients’ monetary confidential information with the general public or media … with no consent on the client or simply a legal explanation.”

The business is actually a “lover” of a number of condition entities, together with SARS along with the CIPC, In accordance with its Web-site.

Neither of The 2 administrators of Dzata Accountants, who will be both of those listed as inactive within the CIPC sign-up of firms, responded to emailed inquiries. The corporate has long been deregistered via the CIPC for failing to post fiscal statements considering that 2021.

The only director of Mageba Ntuli Trading and Consulting Service, Patrick Zulu, died a few several years ago, Based on Formal records. The corporation was deregistered with the CIPC for failing to post economic statements considering the fact that 2021.

Matamela Magodi, the only real director of Magodi Consultants, didn't reply to questions emailed to him.

GroundUp was unable to locate any listing for Tafta Consulting and Accounting Expert services Using the CIPC. We have been also unable to trace any of the organization’s directors to request remark.

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