The accountants who aided loot the Lottery
The accountants who aided loot the Lottery
Blog Article
The Specific Investigating Unit has discovered 5 accounting corporations that aided loot Lottery money. Graphic: Lisa Nelson
The Particular Investigating Unit has discovered five accounting and auditing corporations that assisted non-revenue companies loot Lottery money supposed for “excellent leads to”.
The accounting companies compiled fraudulent economical statements used by these corporations to make an application for Lottery funding, the SIU informed Parliament.
Acting Main nationwide investigations officer Zodwa Xesibe stated the SIU would acquire action to possess these corporations blacklisted.
A 4-year probe with the fox888 Unique Investigating Device (SIU) has uncovered five accounting and auditing corporations that aided dodgy non-gain organizations loot many hundreds of millions of rands meant for “superior brings about” from the Lottery.
These firms were explained with the SIU as “professional enablers,” who “compiled fraudulent fiscal statements” which were employed by the businesses to submit an application for Lottery funding.
The five corporations were named in Parliament through the SIU’s acting Main nationwide investigations officer Zodwa Xesibe. They are TTP Consulting, Dzata Accountants, Magodi Consulting, Mageba Ntuli Consulting and Tafta Consulting and Accounting Providers.
Fraudulent financials produced by these 5 accounting companies assisted practically forty companies get their arms on lottery funding, based on the SIU presentation.
Based upon a tool that contains information with all lottery grants considering the fact that 2002, these organizations bought over R314-million in funding.
“These NPCs had been funded with the Nationwide Lotteries Commission (NLC) though the resources were not employed for their supposed reason,” Xesibe instructed Parliament’s Trade, Sector and Opposition Portfolio Committee very last 7 days.
The SIU, the Hawks plus the Nationwide Prosecuting Authority (NPA) had been in Parliament to report back to the committee on progress in bringing folks and organisations linked to looting the lottery to guide.
Xesibe explained to GroundUp which the SIU meant to lodge problems towards the accounting firms involved and was examining if these corporations had been registered and, If that's so, with which Skilled bodies.
“We would like these providers to become blacklisted,” she informed GroundUp.
To qualify for Lottery funding, an organisation was necessary to make two yrs of yearly economical statements, Xesibe stated in Parliament.
Having said that, as 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 economic keep track of records ended up accustomed to submit an application for funding.
In a few circumstances, almost equivalent monetary statements were made for unrelated organisations, normally with only the names in the organisations improved, GroundUp’s investigation discovered.
Documents submitted by real NPCs for unsuccessful grant applications have been normally employed by new or hijacked NPCs and NPOs to apply for funding. The main points and files from the unsuccessful applicants had been equipped by senior Lottery officers into the dodgy applicants.
With cursory or - frequently - no verification, these dodgy applicants have been awarded many rands in grants. Occasionally further tranches of funds were being paid out out with out much examining about the development of tasks.
The overwhelming majority of such grants had been built via proactive funding, which was at the center of the looting on the lottery. Proactive funding authorized the Minister of Trade, Sector and Competition, or even the NLC along with its board, to identify brings about to fund with no very first necessitating an application. This was stopped when a new NLC board was appointed.
R2-billion in grants below investigation
SIU head Advocate Andy Mothibi mentioned the SIU was at present investigating grants valued at more than R2-billion, and also the device was even now frequently obtaining idea-offs about far more corruption.
He informed MPs which the SIU’s investigation had been damaged into a few phases: the 1st, that has been finalised, probed dodgy grants amounting to R280-million, and the second, also completed, concerned R247-million. From the third period, on account of be finalised at the conclusion of the year, the SIU is investigating grants valued at Just about R906-million, involving forty NPOs and NPCs, Mothibi claimed.
He reported the SIU would implement “quickly” for your Presidential Proclamation, originally granted in October 2020 to analyze corruption involving lottery grants, being extended to incorporate procurement via the NLC.
The SIU investigation experienced up to now brought about thirteen disciplinary referrals to your NLC, and administrative referrals to SARS and the Companies and Intellectual Houses Commission to blacklist folks implicated during the looting. Complaints involving two persons were referred to the Legal Follow Council and the SA Institute of Chartered Accountants.
The SIU had observed several developments beneath the earlier NLC board and executive - most of whom are already implicated in looting - Mothibi instructed MPs.
This involved a “craze of collusion amongst NLC officials and NPOs and NPCs”, “the hijacking of NPOs and NPCs” and “typical maladministration from the approval of grants,” he reported.
Gradual progress via the NPA
The SIU has frozen residences, Qualities, cars and trucks and various assets value tens of millions that were purchased with lottery cash, but MPs expressed issue at slow development in prosecuting People involved in the looting. (The SIU is mandated only to Recuperate assets bought with stolen state funds and does not have prosecuting powers).
Though the SIU has referred fifteen issues for the NPA, to date only two individuals have been brought just before a courtroom. Two Guys appeared in court in Kimberley lately in reference to misappropriated funds gathered for the undertaking to combat gender-centered violence.
In August 2022 Christopher Tshivule was sentenced to eight years in jail for his aspect within a R1.five-million lottery grant fraud. Fees towards two people charged with him, who the SIU has referred to as “kingpins” inside the corruption that overwhelmed the NLC, ended up dropped.
Main-General Mmeli Makinyane, the acting divisional commissioner for priority offences, explained to MPs that the Hawks have been presently investigating 16 lottery corruption-linked instances. One more a person - the Kimberley make a difference - is ahead of a courtroom and two happen to be sent to the NPA for a call to prosecute. An additional five circumstances are being investigated with the SAPS detective and forensic companies, he said.
Detailing The explanations to the hold off in prosecutions, NPA Deputy Countrywide Director Rodney de Kock said Section of The rationale was that the Hawks needed to do more investigations whenever they acquired dossiers from the SIU.
“In essence, the investigations undertaken via the SIU usually do not satisfy legal standards for prosecutions.”
As a result, the NPA had to work with investigators inside the DPCI (the Hawks) and SAPS to conduct prison investigations and make certain that the evidence fulfills felony prosecution expectations, he mentioned, introducing: “Having said that, the perform from the SIU is vital and contributes drastically to this method.”
De Kock explained that the SIU’s investigation “generally leads to multiple referrals. The referrals may well in the end cause one docket and one particular court docket case.”
He mentioned that twelve issues, which might be “approximately eighty five% complete”, were currently being jointly investigated via the Hawks and also the SIU’s Specialised Economic Functions Unit. (Many of these circumstances, seven of which were lodged in 2020, include former NLC Main working officer Phillemon Letwaba, who resigned under a cloud in 2022, and Pretoria law firm Leslie Ramulifho.)
De Kock explained the NPA faced quite a few “troubles” in prosecuting instances. These, he claimed, integrated
the lapse of your time in between if the offences ended up fully commited as well as the issuing of your Presidential Proclamation on one November 2020;
“unavailability of witnesses and/or documentary proof” (Before this year, the SIU advised the committee that essential files needed in some prosecutions were deleted from your NLC Computer system technique or had gone lacking from Metrofile, a warehouse in which copies of files are archived and stored);
The truth that some implicated individuals remain employed by NLC; and
A problem on the legality on the Presidential Proclamation by previous NLC chairperson Alfred Nevhutanda.
“The NPA is devoted to guaranteeing finalisation in these matters. To this close, a crew of committed prosecutors continues to be allocated to oversee all NLC matters presently underneath investigation,” de Kock reported. “Issues are handled like a priority. The moment [the] investigations are done, the NPA could make a call.”
What the businesses say (or don’t)
GroundUp was only able to get remark from among the 5 corporations accused because of the SIU in Parliament of producing fraudulent once-a-year economic statements,TTP Consulting.
Aubrey Moeng, among TTP’s two directors, explained in an electronic mail in response to thoughts: “Resulting from consumer confidentiality, we wish to suggest that TTP Consulting is not ready to disclose customers’ economical confidential data with the general public or media … with no consent on the customer or even a authorized motive.”
The organization can be a “partner” of numerous state entities, such as SARS and also the CIPC, In line with its Internet site.
Neither of the two administrators of Dzata Accountants, who're both stated as inactive within the CIPC sign up of organizations, responded to emailed questions. The business continues to be deregistered because of the CIPC for failing to post financial statements considering that 2021.
The only director of Mageba Ntuli Investing and Consulting Company, Patrick Zulu, died a few years ago, In line with official information. The business was deregistered because of the CIPC for failing to submit economic statements considering that 2021.
Matamela Magodi, the sole director of Magodi Consultants, didn't reply to concerns emailed to him.
GroundUp was unable to obtain any listing for Tafta Consulting and Accounting Products and services Along with the CIPC. We have been also unable to trace any of the corporation’s directors to ask for remark.