The accountants who helped loot the Lottery

The accountants who helped loot the Lottery

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The Unique Investigating Device has identified five accounting corporations that served loot Lottery funds. Graphic: Lisa Nelson

The Particular Investigating Unit has recognized five accounting and auditing firms that helped non-revenue firms loot Lottery income intended for “good leads to”.
The accounting corporations compiled fraudulent money statements used by these providers to submit an application for Lottery funding, the SIU informed Parliament.
Performing chief nationwide investigations officer Zodwa Xesibe reported the SIU would get action to own these firms blacklisted.
A 4-12 months probe from the ผล สลากกินแบ่ง Distinctive Investigating Device (SIU) has uncovered five accounting and auditing companies that assisted dodgy non-profit organizations loot many hundreds of many rands designed for “good brings about” with the Lottery.

These corporations ended up described via the SIU as “Specialist enablers,” who “compiled fraudulent financial statements” which were used by the businesses to apply for Lottery funding.

The 5 providers ended up named in Parliament with 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 Companies.

Fraudulent financials made by these 5 accounting companies served just about forty providers get their arms on lottery funding, based on the SIU presentation.

Dependant on a Resource containing data with all lottery grants because 2002, these providers received over R314-million in funding.

“These NPCs ended up funded because of the Countrywide Lotteries Commission (NLC) but the cash weren't used for their intended reason,” Xesibe told Parliament’s Trade, Sector and Competitors Portfolio Committee final 7 days.

The SIU, the Hawks and also the Nationwide Prosecuting Authority (NPA) have been in Parliament to report to the committee on progress in bringing people today and organisations linked to looting the lottery to e book.

Xesibe advised GroundUp which the SIU intended to lodge issues towards the accounting companies associated and was checking if these corporations have been registered and, In that case, with which Specialist bodies.

“We want these providers being blacklisted,” she advised GroundUp.

To qualify for Lottery funding, an organisation was required to develop two years of annual money statements, Xesibe explained in Parliament.

On the other hand, being an ongoing 6-calendar year investigation into lottery corruption by GroundUp has disclosed, hijacked non-revenue organisations (NPOs) or new shelf non-income corporations (NPCs) without having economical keep track of data have been accustomed to apply for funding.

In certain circumstances, Virtually identical financial statements were being created for unrelated organisations, typically with just the names with the organisations changed, GroundUp’s investigation discovered.

Documents submitted by genuine NPCs for unsuccessful grant purposes were often employed by new or hijacked NPCs and NPOs to submit an application for funding. The small print and paperwork from the unsuccessful applicants were equipped by senior Lottery officials to the dodgy applicants.

With cursory or - normally - no verification, these dodgy applicants ended up awarded a lot of rands in grants. Often extra tranches of cash were paid out out without Substantially examining within the development of projects.

The vast majority of those grants were being produced by means of proactive funding, which was at the heart in the looting with the lottery. Proactive funding allowed the Minister of Trade, Sector and Competitors, or even the NLC along with its board, to detect leads to to fund with no 1st necessitating an application. This was stopped whenever a new NLC board was appointed.

R2-billion in grants below investigation
SIU head Advocate Andy Mothibi stated the SIU was presently investigating grants valued at more than R2-billion, and the device was nonetheless regularly getting idea-offs about a lot more corruption.

He explained to MPs that the SIU’s investigation had been damaged into a few phases: the initial, that has been finalised, probed dodgy grants amounting to R280-million, and the next, also concluded, involved R247-million. While in the 3rd period, due to be finalised at the end of the 12 months, the SIU is investigating grants valued at Practically R906-million, involving forty NPOs and NPCs, Mothibi said.

He said the SIU would utilize “before long” for the Presidential Proclamation, at first granted in Oct 2020 to research corruption involving lottery grants, to generally be prolonged to incorporate procurement because of the NLC.

The SIU investigation experienced to date resulted in thirteen disciplinary referrals to your NLC, and administrative referrals to SARS and the Companies and Mental Homes Commission to blacklist persons implicated while in the looting. Grievances involving two people were referred for the Lawful Apply Council and also the SA Institute of Chartered Accountants.

The SIU experienced noticed numerous traits beneath the prior NLC board and executive - a lot of whom happen to be implicated in looting - Mothibi advised MPs.

This provided a “craze of collusion amongst NLC officials and NPOs and NPCs”, “the hijacking of NPOs and NPCs” and “general maladministration in the acceptance of grants,” he mentioned.

Slow development from the NPA
The SIU has frozen homes, Houses, automobiles along with other belongings value tens of hundreds of thousands which were acquired with lottery funds, but MPs expressed worry at gradual development in prosecuting Individuals linked to the looting. (The SIU is mandated only to recover assets bought with stolen condition cash and doesn't have prosecuting powers).

Though the SIU has referred fifteen issues to the NPA, so far only two people have been brought prior to a court. Two Adult males appeared in courtroom in Kimberley recently in reference to misappropriated funds gathered for your challenge to beat gender-centered violence.

In August 2022 Christopher Tshivule was sentenced to 8 many years in prison for his aspect in a very R1.5-million lottery grant fraud. Expenses from two people today charged with him, who the SIU has described as “kingpins” inside the corruption that overwhelmed the NLC, had been dropped.

Significant-General Mmeli Makinyane, the performing divisional commissioner for priority offences, told MPs the Hawks were now investigating 16 lottery corruption-linked instances. Another a person - the Kimberley make a difference - is right before a court and two have already been sent on the NPA for a call to prosecute. A further five cases are being investigated through the SAPS detective and forensic services, he stated.

Describing the reasons for that hold off in prosecutions, NPA Deputy Nationwide Director Rodney de Kock explained Section of The main reason was which the Hawks had to do more investigations if they gained dossiers from the SIU.

“In essence, the investigations undertaken via the SIU tend not to fulfill felony standards for prosecutions.”

Hence, the NPA experienced to work with investigators in the DPCI (the Hawks) and SAPS to carry out prison investigations and make certain that the evidence fulfills prison prosecution criteria, he said, adding: “Having said that, the work from the SIU is very important and contributes drastically to this process.”

De Kock claimed the SIU’s investigation “usually brings about many referrals. The referrals could ultimately end in a single docket and a person court situation.”

He reported that 12 matters, which happen to be “around 85% entire”, were getting jointly investigated via the Hawks and the SIU’s Specialised Financial Functions Device. (These types of conditions, 7 of which were being lodged in 2020, involve previous NLC Main running officer Phillemon Letwaba, who resigned underneath a cloud in 2022, and Pretoria attorney Leslie Ramulifho.)

De Kock claimed the NPA faced many “issues” in prosecuting situations. These, he mentioned, included

the lapse of time concerning once the offences were being committed and also the issuing with the Presidential Proclamation on 1 November 2020;
“unavailability of witnesses and/or documentary evidence” (Previously this calendar year, the SIU told the committee that essential paperwork wanted in certain prosecutions were deleted from the NLC Personal computer process or experienced long gone lacking from Metrofile, a warehouse where by copies of files are archived and saved);
The reality that some implicated people today remain utilized by NLC; and
A challenge towards the legality from the Presidential Proclamation by previous NLC chairperson Alfred Nevhutanda.
“The NPA is devoted to ensuring finalisation in these issues. To this conclude, a crew of dedicated prosecutors continues to be allotted to oversee all NLC issues at this time underneath investigation,” de Kock claimed. “Matters are handled being a priority. After [the] investigations are completed, the NPA can make a choice.”

What the companies say (or don’t)
GroundUp was only ready to get remark from among the list of 5 firms accused via the SIU in Parliament of producing fraudulent annual money statements,TTP Consulting.

Aubrey Moeng, certainly one of TTP’s two directors, stated in an electronic mail in response to queries: “As a result of consumer confidentiality, we desire to advise that TTP Consulting will not be ready to disclose consumers’ monetary private details with the general public or media … with no consent on the client or maybe a legal explanation.”

The organization is usually a “spouse” of quite a few point out entities, such as SARS along with the CIPC, according to its Web site.

Neither of the two directors of Dzata Accountants, who will be both listed as inactive on the CIPC sign up of firms, responded to emailed queries. The organization has been deregistered via the CIPC for failing to submit financial statements considering the fact that 2021.

The sole director of Mageba Ntuli Buying and selling and Consulting Company, Patrick Zulu, died three yrs ago, In keeping with official information. The company was deregistered through the CIPC for failing to post economical statements because 2021.

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

GroundUp was unable to locate any listing for Tafta Consulting and Accounting Companies Along with the CIPC. We ended up also not able to trace any of the business’s directors to request comment.

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