The accountants who helped loot the Lottery

The accountants who helped loot the Lottery

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The Specific Investigating Device has identified five accounting companies that aided loot Lottery cash. Graphic: Lisa Nelson

The Unique Investigating Device has identified 5 accounting and auditing firms that helped non-income companies loot Lottery dollars meant for “good results in”.
The accounting corporations compiled fraudulent financial statements utilized by these firms to submit an application for Lottery funding, the SIU advised Parliament.
Performing Main national investigations officer Zodwa Xesibe reported the SIU would acquire action to obtain these firms blacklisted.
A four-calendar year probe via the ตรวจ หวย ลาว Exclusive Investigating Unit (SIU) has exposed 5 accounting and auditing firms that aided dodgy non-gain corporations loot a huge selection of millions of rands designed for “great leads to” from your Lottery.

These firms had been described because of the SIU as “Experienced enablers,” who “compiled fraudulent economical statements” which were employed by the companies to make an application for Lottery funding.

The 5 corporations had been named in Parliament because of the SIU’s performing chief countrywide investigations officer Zodwa Xesibe. These are TTP Consulting, Dzata Accountants, Magodi Consulting, Mageba Ntuli Consulting and Tafta Consulting and Accounting Expert services.

Fraudulent financials produced by these 5 accounting firms aided practically 40 companies get their palms on lottery funding, based on the SIU presentation.

Depending on a Resource made up of data with all lottery grants considering that 2002, these providers bought over R314-million in funding.

“These NPCs were funded from the National Lotteries Fee (NLC) though the resources were not applied for his or her intended purpose,” Xesibe told Parliament’s Trade, Sector and Levels of competition Portfolio Committee last 7 days.

The SIU, the Hawks and also the Nationwide Prosecuting Authority (NPA) were being in Parliament to report back to the committee on development in bringing people today and organisations involved in looting the lottery to e-book.

Xesibe explained to GroundUp which the SIU meant to lodge complaints towards the accounting corporations included and was examining if these companies have been registered and, If that is so, with which Experienced bodies.

“We would like these organizations to become blacklisted,” she instructed GroundUp.

To qualify for Lottery funding, an organisation was needed to deliver two years of annual monetary statements, Xesibe spelled out in Parliament.

Even so, being an ongoing 6-calendar year investigation into lottery corruption by GroundUp has uncovered, hijacked non-gain organisations (NPOs) or new shelf non-profit businesses (NPCs) without any economic track records ended up utilized to make an application for funding.

In some situations, Pretty much similar economic statements were manufactured for unrelated organisations, normally with only the names with the organisations transformed, GroundUp’s investigation located.

Documents submitted by real NPCs for unsuccessful grant apps were being frequently utilized by new or hijacked NPCs and NPOs to make an application for funding. The main points and files of your unsuccessful applicants were supplied by senior Lottery officers towards the dodgy applicants.

With cursory or - typically - no verification, these dodgy applicants have been awarded a lot of rands in grants. In some cases supplemental tranches of money had been compensated out with no Significantly examining around the development of tasks.

The overwhelming majority of such grants had been designed via proactive funding, which was at the center on the looting of your lottery. Proactive funding authorized the Minister of Trade, Industry and Competitiveness, or perhaps the NLC at the side of its board, to detect causes to fund without first demanding an software. This was stopped each time 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 around R2-billion, plus the unit was nonetheless frequently acquiring idea-offs about additional corruption.

He advised MPs which the SIU’s investigation had been broken into a few phases: the initial, that has been finalised, probed dodgy grants amounting to R280-million, and the 2nd, also finished, concerned R247-million. During the third stage, resulting from be finalised at the conclusion of the calendar year, the SIU is investigating grants valued at Nearly R906-million, involving 40 NPOs and NPCs, Mothibi mentioned.

He explained the SIU would implement “shortly” to the Presidential Proclamation, initially granted in October 2020 to analyze corruption involving lottery grants, being extended to include procurement via the NLC.

The SIU investigation had up to now led to thirteen disciplinary referrals on the NLC, and administrative referrals to SARS and the Companies and Mental Properties Fee to blacklist people implicated in the looting. Issues involving two folks were referred towards the Lawful Apply Council and the SA Institute of Chartered Accountants.

The SIU had observed various traits under the prior NLC board and executive - lots of whom are implicated in looting - Mothibi told MPs.

This integrated a “pattern of collusion among NLC officials and NPOs and NPCs”, “the hijacking of NPOs and NPCs” and “common maladministration within the acceptance of grants,” he reported.

Sluggish progress by the NPA
The SIU has frozen households, properties, cars and various belongings worthy of tens of tens of millions that were acquired with lottery money, but MPs expressed concern at sluggish progress in prosecuting People involved in the looting. (The SIU is mandated only to Get better assets purchased with stolen state cash and does not have prosecuting powers).

Whilst the SIU has referred 15 issues on the NPA, up to now only two individuals have been introduced in advance of a court. Two Adult males appeared in court in Kimberley not too long ago in connection with misappropriated funds collected for just a venture to battle gender-based violence.

In August 2022 Christopher Tshivule was sentenced to eight a long time in jail for his portion inside a R1.5-million lottery grant fraud. Charges from two individuals charged with him, who the SIU has described as “kingpins” inside the corruption that overwhelmed the NLC, were dropped.

Major-Normal Mmeli Makinyane, the acting divisional commissioner for precedence offences, informed MPs which the Hawks ended up at present investigating 16 lottery corruption-associated cases. Another a person - the Kimberley make a difference - is in advance of a court docket and two have been sent for the NPA for a choice to prosecute. An extra 5 conditions are increasingly being investigated by the SAPS detective and forensic services, he said.

Describing the reasons for the delay in prosecutions, NPA Deputy Nationwide Director Rodney de Kock said Section of The key reason why was the Hawks had to do even further investigations every time they been given dossiers with the SIU.

“In essence, the investigations undertaken by the SIU never fulfill criminal benchmarks for prosecutions.”

As a result, the NPA experienced to work with investigators from the DPCI (the Hawks) and SAPS to conduct prison investigations and be sure that the evidence fulfills felony prosecution benchmarks, he stated, including: “Having said that, the get the job done with the SIU is important and contributes greatly to this method.”

De Kock mentioned which the SIU’s investigation “generally ends in several referrals. The referrals may finally cause 1 docket and a person court circumstance.”

He stated that 12 matters, which are “around 85% finish”, were being being jointly investigated from the Hawks as well as the SIU’s Specialised Financial Functions Unit. (The majority of these scenarios, seven of which had been lodged in 2020, involve previous NLC Main running officer Phillemon Letwaba, who resigned beneath a cloud in 2022, and Pretoria lawyer Leslie Ramulifho.)

De Kock claimed the NPA faced quite a few “troubles” in prosecuting circumstances. These, he said, provided

the lapse of your time among in the event the offences had been dedicated and the issuing in the Presidential Proclamation on 1 November 2020;
“unavailability of witnesses and/or documentary proof” (Previously this calendar year, the SIU told the committee that important paperwork necessary in a few prosecutions had been deleted from your NLC Laptop procedure or experienced absent missing from Metrofile, a warehouse exactly where copies of documents are archived and saved);
The reality that some implicated men and women are still used by NLC; and
A problem for the legality of the Presidential Proclamation by previous NLC chairperson Alfred Nevhutanda.
“The NPA is committed to making sure finalisation in these matters. To this close, a crew of dedicated prosecutors has actually been allocated to oversee all NLC issues presently underneath investigation,” de Kock stated. “Matters are managed as a priority. After [the] investigations are done, the NPA will make a decision.”

What the companies say (or don’t)
GroundUp was only capable of get comment from among the list of 5 corporations accused by the SIU in Parliament of manufacturing fraudulent yearly fiscal statements,TTP Consulting.

Aubrey Moeng, considered one of TTP’s two directors, stated within an e mail in response to questions: “Due to customer confidentiality, we desire to recommend that TTP Consulting is just not willing to disclose clients’ money confidential data with the general public or media … without the consent with the client or possibly a lawful reason.”

The business is usually a “spouse” of quite a few state entities, which includes SARS plus the CIPC, according to its Web site.

Neither of the two administrators of Dzata Accountants, who are the two detailed as inactive within the CIPC register of organizations, responded to emailed inquiries. The organization continues to be deregistered from the CIPC for failing to post fiscal statements given that 2021.

The only real director of Mageba Ntuli Buying and selling and Consulting Service, Patrick Zulu, died 3 many years back, In line with Formal records. The corporate was deregistered with the CIPC for failing to post monetary statements considering the fact that 2021.

Matamela Magodi, the sole director of Magodi Consultants, did not respond to queries emailed to him.

GroundUp was not able to locate any listing for Tafta Consulting and Accounting Companies with the CIPC. We were also unable to trace any of the business’s directors to ask for remark.

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