The accountants who served loot the Lottery

The accountants who served loot the Lottery

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The Special Investigating Unit has recognized five accounting corporations that served loot Lottery cash. Graphic: Lisa Nelson

The Exclusive Investigating Unit has recognized five accounting and auditing companies that assisted non-earnings businesses loot Lottery dollars supposed for “great triggers”.
The accounting companies compiled fraudulent monetary statements employed by these providers to submit an application for Lottery funding, the SIU explained to Parliament.
Performing chief countrywide investigations officer Zodwa Xesibe explained the SIU would get motion to get these corporations blacklisted.
A 4-calendar year probe because of the หวย Specific Investigating Device (SIU) has exposed 5 accounting and auditing companies that assisted dodgy non-revenue companies loot many an incredible number of rands designed for “very good causes” through the Lottery.

These corporations ended up described because of the SIU as “professional enablers,” who “compiled fraudulent fiscal statements” which were employed by the businesses to submit an application for Lottery funding.

The 5 companies have been named in Parliament because of the SIU’s performing Main countrywide investigations officer Zodwa Xesibe. They may be TTP Consulting, Dzata Accountants, Magodi Consulting, Mageba Ntuli Consulting and Tafta Consulting and Accounting Expert services.

Fraudulent financials made by these five accounting companies aided virtually forty companies get their hands on lottery funding, according to the SIU presentation.

According to a Resource that contains knowledge with all lottery grants considering that 2002, these businesses got around R314-million in funding.

“These NPCs have been funded by the Countrywide Lotteries Commission (NLC) though the money weren't applied for their intended purpose,” Xesibe told Parliament’s Trade, Sector and Competition Portfolio Committee final 7 days.

The SIU, the Hawks and the Nationwide Prosecuting Authority (NPA) were being in Parliament to report to the committee on progress in bringing individuals and organisations involved with looting the lottery to e-book.

Xesibe explained to GroundUp which the SIU meant to lodge problems towards the accounting companies involved and was checking if these corporations had been registered and, If that's so, with which Expert bodies.

“We want these organizations for being blacklisted,” she told GroundUp.

To qualify for Lottery funding, an organisation was required to produce two decades of yearly economic statements, Xesibe discussed in Parliament.

Even so, being an ongoing six-12 months investigation into lottery corruption by GroundUp has disclosed, hijacked non-income organisations (NPOs) or new shelf non-profit firms (NPCs) without having fiscal keep track of documents had been accustomed to make an application for funding.

In a few circumstances, Virtually similar economic statements had been created for unrelated organisations, often with only the names from the organisations improved, GroundUp’s investigation located.

Files submitted by genuine NPCs for unsuccessful grant programs were normally utilized by new or hijacked NPCs and NPOs to apply for funding. The small print and files in the unsuccessful applicants ended up provided by senior Lottery officials for the dodgy applicants.

With cursory or - typically - no verification, these dodgy applicants ended up awarded millions of rands in grants. In some cases more tranches of money were being paid out out with out Significantly checking on the development of assignments.

The overwhelming majority of such grants have been created by using proactive funding, which was at the center of your looting with the lottery. Proactive funding permitted the Minister of Trade, Industry and Competitors, or even the NLC at the side of its board, to determine will cause to fund with out initially demanding an application. This was stopped any time a new NLC board was appointed.

R2-billion in grants below investigation
SIU head Advocate Andy Mothibi explained the SIU was currently investigating grants valued at more than R2-billion, and also the unit was still routinely acquiring suggestion-offs about a lot more corruption.

He told MPs which the SIU’s investigation had been broken into three phases: the first, which has been finalised, probed dodgy grants amounting to R280-million, and the next, also finished, included R247-million. Inside the 3rd phase, due to be finalised at the conclusion of the calendar year, the SIU is investigating grants valued at Just about R906-million, involving forty NPOs and NPCs, Mothibi stated.

He explained the SIU would utilize “before long” for that Presidential Proclamation, at first granted in October 2020 to investigate corruption involving lottery grants, for being extended to incorporate procurement with the NLC.

The SIU investigation had so far triggered 13 disciplinary referrals to the NLC, and administrative referrals to SARS and the Companies and Intellectual Houses Commission to blacklist individuals implicated within the looting. Problems involving two people today were referred on the Lawful Observe Council plus the SA Institute of Chartered Accountants.

The SIU had noticed numerous traits beneath the former NLC board and executive - lots of whom are already implicated in looting - Mothibi told MPs.

This involved a “development of collusion between NLC officials and NPOs and NPCs”, “the hijacking of NPOs and NPCs” and “standard maladministration from the acceptance of grants,” he claimed.

Gradual progress through the NPA
The SIU has frozen houses, Homes, autos along with other assets worthy of tens of tens of millions which were bought with lottery resources, but MPs expressed issue at slow development in prosecuting those involved in the looting. (The SIU is mandated only to recover belongings bought with stolen state cash and does not have prosecuting powers).

Whilst the SIU has referred fifteen matters for the NPA, up to now only two folks have been introduced right before a court. Two Adult men appeared in court docket in Kimberley just lately in connection with misappropriated cash gathered for just a project to combat gender-based violence.

In August 2022 Christopher Tshivule was sentenced to eight years in jail for his section inside a R1.five-million lottery grant fraud. Rates against two individuals charged with him, who the SIU has called “kingpins” from the corruption that overwhelmed the NLC, were being dropped.

Big-Basic Mmeli Makinyane, the performing divisional commissioner for priority offences, advised MPs which the Hawks ended up at present investigating sixteen lottery corruption-associated scenarios. Another one particular - the Kimberley make any difference - is prior to a court and two are already sent to your NPA for a call to prosecute. An additional five situations are now being investigated with the SAPS detective and forensic products and services, he said.

Conveying The explanations for your hold off in prosecutions, NPA Deputy Countrywide Director Rodney de Kock explained Component of The rationale was that the Hawks needed to do additional investigations when they acquired dossiers in the SIU.

“In essence, the investigations carried out through the SIU never satisfy legal criteria for prosecutions.”

Consequently, the NPA had to work with investigators from the DPCI (the Hawks) and SAPS to perform criminal investigations and be sure that the proof meets legal prosecution criteria, he said, adding: “That said, the perform of your SIU is very important and contributes drastically to this process.”

De Kock mentioned that the SIU’s investigation “frequently brings about a number of referrals. The referrals could in the end bring about one particular docket and 1 courtroom situation.”

He reported that 12 issues, that happen to be “approximately 85% complete”, have been remaining jointly investigated through the Hawks plus the SIU’s Specialised Financial Functions Unit. (These types of cases, seven of which had been lodged in 2020, include former NLC chief operating officer Phillemon Letwaba, who resigned below a cloud in 2022, and Pretoria attorney Leslie Ramulifho.)

De Kock claimed the NPA confronted many “troubles” in prosecuting cases. These, he claimed, involved

the lapse of time in between in the event the offences ended up committed and the issuing of your Presidential Proclamation on 1 November 2020;
“unavailability of witnesses and/or documentary proof” (Earlier this yr, the SIU told the committee that essential files essential in certain prosecutions were deleted from your NLC Personal computer process or had absent lacking from Metrofile, a warehouse where by copies of documents are archived and stored);
The truth that some implicated people today remain used by NLC; and
A obstacle to your legality of the Presidential Proclamation by previous NLC chairperson Alfred Nevhutanda.
“The NPA is dedicated to ensuring finalisation in these issues. To this conclusion, a staff of committed prosecutors continues to be allotted to supervise all NLC issues at this time beneath investigation,” de Kock explained. “Matters are taken care of being a precedence. The moment [the] investigations are finished, the NPA could make a decision.”

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

Aubrey Moeng, certainly one of TTP’s two directors, mentioned in an email in response to thoughts: “As a result of consumer confidentiality, we desire to advise that TTP Consulting isn't prepared to disclose clientele’ economic confidential information with the public or media … with no consent from the shopper or possibly a lawful rationale.”

The business is a “spouse” of a number of condition entities, together with SARS as well as the CIPC, according to its Internet site.

Neither of The 2 administrators of Dzata Accountants, who are equally stated as inactive over the CIPC sign up of businesses, responded to emailed queries. The corporation has been deregistered from the CIPC for failing to post money statements due to the fact 2021.

The sole director of Mageba Ntuli Trading and Consulting Company, Patrick Zulu, died 3 several years in the past, In accordance with Formal data. The business was deregistered by the CIPC for failing to submit financial statements considering the fact that 2021.

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

GroundUp was not able to discover any listing for Tafta Consulting and Accounting Solutions Together with the CIPC. We ended up also struggling to trace any of the corporation’s directors to request remark.

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