The accountants who helped loot the Lottery

The accountants who helped loot the Lottery

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The Special Investigating Unit has determined 5 accounting firms that assisted loot Lottery cash. Graphic: Lisa Nelson

The Specific Investigating Device has discovered 5 accounting and auditing corporations that served non-income corporations loot Lottery dollars supposed for “good results in”.
The accounting companies compiled fraudulent fiscal statements utilized by these businesses to make an application for Lottery funding, the SIU explained to Parliament.
Performing Main national investigations officer Zodwa Xesibe claimed the SIU would get motion to obtain these companies blacklisted.
A four-yr probe with the สลาก กิน รัฐบาล Exclusive Investigating Unit (SIU) has uncovered five accounting and auditing firms that assisted dodgy non-income corporations loot a huge selection of a lot of rands intended for “fantastic results in” from the Lottery.

These corporations have been described through the SIU as “professional enablers,” who “compiled fraudulent fiscal statements” that were used by the businesses to apply for Lottery funding.

The five organizations were named in Parliament via the SIU’s acting Main countrywide investigations officer Zodwa Xesibe. They may be TTP Consulting, Dzata Accountants, Magodi Consulting, Mageba Ntuli Consulting and Tafta Consulting and Accounting Products and services.

Fraudulent financials made by these 5 accounting companies helped nearly forty businesses get their fingers on lottery funding, based on the SIU presentation.

Based upon a Software made up of details with all lottery grants because 2002, these businesses obtained around R314-million in funding.

“These NPCs ended up funded through the Countrywide Lotteries Fee (NLC) but the resources were not employed for his or her intended purpose,” Xesibe told Parliament’s Trade, Sector and Opposition Portfolio Committee very last 7 days.

The SIU, the Hawks as well as 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 reserve.

Xesibe told GroundUp that the SIU intended to lodge grievances towards the accounting corporations involved and was examining if these corporations were being registered and, In that case, with which Expert bodies.

“We wish these corporations to get blacklisted,” she informed GroundUp.

To qualify for Lottery funding, an organisation was needed to develop two a long time of once-a-year money statements, Xesibe stated in Parliament.

Nevertheless, being an ongoing 6-calendar year investigation into lottery corruption by GroundUp has revealed, hijacked non-earnings organisations (NPOs) or new shelf non-profit providers (NPCs) with no monetary keep track of data had been utilized to make an application for funding.

In some occasions, Just about similar financial statements were being produced for unrelated organisations, normally with only the names from the organisations changed, GroundUp’s investigation uncovered.

Paperwork submitted by legitimate NPCs for unsuccessful grant programs ended up normally used by new or hijacked NPCs and NPOs to submit an application for funding. The details and files on the unsuccessful applicants were supplied by senior Lottery officers to the dodgy applicants.

With cursory or - typically - no verification, these dodgy applicants were awarded millions of rands in grants. Sometimes added tranches of cash were paid out out without Substantially examining on the development of projects.

The overwhelming majority of those grants had been designed by way of proactive funding, which was at the guts of your looting on the lottery. Proactive funding authorized the Minister of Trade, Market and Levels of competition, or the NLC along side its board, to recognize will cause to fund without very first necessitating an application. This was stopped when a new NLC board was appointed.

R2-billion in grants under investigation
SIU head Advocate Andy Mothibi stated the SIU was presently investigating grants valued at more than R2-billion, as well as the unit was nevertheless frequently acquiring suggestion-offs about a lot more corruption.

He informed MPs which the SIU’s investigation had been broken into 3 phases: the initial, that has been finalised, probed dodgy grants amounting to R280-million, and the 2nd, also done, associated R247-million. Inside the 3rd section, due to be finalised at the end of the calendar year, the SIU is investigating grants valued at Virtually R906-million, involving forty NPOs and NPCs, Mothibi reported.

He explained the SIU would use “shortly” with the Presidential Proclamation, at first granted in Oct 2020 to research corruption involving lottery grants, to get extended to incorporate procurement by the NLC.

The SIU investigation experienced thus far brought about 13 disciplinary referrals towards the NLC, and administrative referrals to SARS and the businesses and Intellectual Qualities Fee to blacklist persons implicated during the looting. Problems involving two folks were referred on the Lawful Apply Council as well as SA Institute of Chartered Accountants.

The SIU had observed various traits under the earlier NLC board and govt - many of whom are already implicated in looting - Mothibi told MPs.

This provided a “development of collusion in between NLC officials and NPOs and NPCs”, “the hijacking of NPOs and NPCs” and “general maladministration inside the approval of grants,” he stated.

Gradual development through the NPA
The SIU has frozen homes, Attributes, autos together with other property worth tens of thousands and thousands that were bought with lottery resources, but MPs expressed issue at sluggish progress in prosecuting those involved with the looting. (The SIU is mandated only to Recuperate belongings bought with stolen condition funds and does not have prosecuting powers).

Though the SIU has referred 15 matters to your NPA, up to now only two folks have been introduced in advance of a court docket. Two men appeared in court in Kimberley not too long ago in reference to misappropriated cash gathered for your job to beat gender-based violence.

In August 2022 Christopher Tshivule was sentenced to eight several years in prison for his component within a R1.5-million lottery grant fraud. Costs versus two people billed with him, who the SIU has described as “kingpins” inside the corruption that confused the NLC, have been dropped.

Significant-Typical Mmeli Makinyane, the acting divisional commissioner for precedence offences, informed MPs the Hawks were at the moment investigating sixteen lottery corruption-related situations. Another just one - the Kimberley make a difference - is right before a court and two have already been sent to the NPA for a decision to prosecute. An additional five circumstances are now being investigated because of the SAPS detective and forensic providers, he claimed.

Conveying the reasons to the delay in prosecutions, NPA Deputy Countrywide Director Rodney de Kock claimed Component of The key reason why was the Hawks needed to do further investigations when they been given dossiers within the SIU.

“In essence, the investigations undertaken via the SIU usually do not fulfill criminal benchmarks for prosecutions.”

As a result, the NPA had to work with investigators from the DPCI (the Hawks) and SAPS to carry out prison investigations and make certain that the evidence fulfills legal prosecution expectations, he reported, introducing: “Having said that, the do the job with the SIU is important and contributes greatly to this method.”

De Kock claimed that the SIU’s investigation “often ends in several referrals. The referrals may finally lead to one docket and one particular court docket case.”

He claimed that twelve issues, which are “around 85% finish”, had been being jointly investigated because of the Hawks as well as SIU’s Specialised Economic Operations Device. (Many of these situations, seven of which had been lodged in 2020, include previous NLC Main running officer Phillemon Letwaba, who resigned below a cloud in 2022, and Pretoria law firm Leslie Ramulifho.)

De Kock reported the NPA confronted many “problems” in prosecuting circumstances. These, he said, involved

the lapse of time involving in the event the offences ended up committed and also the issuing from the Presidential Proclamation on one November 2020;
“unavailability of witnesses and/or documentary evidence” (Previously this year, the SIU told the committee that vital paperwork needed in a few prosecutions had been deleted in the NLC Laptop or computer method or had absent missing from Metrofile, a warehouse exactly where copies of files are archived and saved);
the fact that some implicated persons are still utilized by NLC; and
A challenge to the legality from the Presidential Proclamation by previous NLC chairperson Alfred Nevhutanda.
“The NPA is dedicated to guaranteeing finalisation in these matters. To this finish, a group of devoted prosecutors has actually been allocated to oversee all NLC issues at this time less than investigation,” de Kock said. “Issues are dealt with like a precedence. The moment [the] investigations are finished, the NPA is likely to make a decision.”

What the companies say (or don’t)
GroundUp was only capable of get remark from on the list of five providers accused from the SIU in Parliament of manufacturing fraudulent once-a-year monetary statements,TTP Consulting.

Aubrey Moeng, considered one of TTP’s two administrators, said in an email in response to thoughts: “As a result of client confidentiality, we wish to recommend that TTP Consulting will not be ready to disclose purchasers’ money confidential info with the general public or media … with no consent of your consumer or even a lawful rationale.”

The corporate is actually a “partner” of numerous state entities, like SARS and also the CIPC, In keeping with its Web site.

Neither of the two administrators of Dzata Accountants, who are the two detailed as inactive about the CIPC sign-up of firms, responded to emailed inquiries. The corporate has actually been deregistered because of the CIPC for failing to submit financial statements because 2021.

The only real director of Mageba Ntuli Buying and selling and Consulting Services, Patrick Zulu, died a few yrs in the past, In line with official documents. The corporation was deregistered with the CIPC for failing to submit financial statements due to the fact 2021.

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

GroundUp was not able to find any listing for Tafta Consulting and Accounting Products and services With all the CIPC. We ended up also struggling to trace any of the company’s directors to request remark.

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