The accountants who served loot the Lottery

The accountants who served loot the Lottery

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The Distinctive Investigating Device 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 aided non-earnings organizations loot Lottery money meant for “great causes”.
The accounting companies compiled fraudulent financial statements utilized by these providers to make an application for Lottery funding, the SIU instructed Parliament.
Performing chief national investigations officer Zodwa Xesibe explained the SIU would choose motion to possess these firms blacklisted.
A four-yr probe with the luckyvip77 Specific Investigating Device (SIU) has uncovered five accounting and auditing firms that assisted dodgy non-gain businesses loot many millions of rands meant for “excellent brings about” with the Lottery.

These corporations ended up explained with the SIU as “Qualified enablers,” who “compiled fraudulent fiscal statements” that were used by the businesses to make an application for Lottery funding.

The five providers ended up named in Parliament with the SIU’s performing chief countrywide investigations officer Zodwa Xesibe. They can be TTP Consulting, Dzata Accountants, Magodi Consulting, Mageba Ntuli Consulting and Tafta Consulting and Accounting Providers.

Fraudulent financials made by these five accounting companies aided almost 40 providers get their hands on lottery funding, based on the SIU presentation.

Based on a Instrument that contains facts with all lottery grants because 2002, these organizations acquired about R314-million in funding.

“These NPCs were being funded via the Countrywide Lotteries Fee (NLC) even so the money were not used for his or her meant goal,” Xesibe informed Parliament’s Trade, Industry and Competitors Portfolio Committee past week.

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

Xesibe explained to GroundUp that the SIU intended to lodge issues versus the accounting firms concerned and was checking if these companies have been registered and, If that's so, with which professional bodies.

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

To qualify for Lottery funding, an organisation was necessary to create two years of yearly economic statements, Xesibe described in Parliament.

Nonetheless, being an ongoing 6-12 months investigation into lottery corruption by GroundUp has exposed, hijacked non-financial gain organisations (NPOs) or new shelf non-income corporations (NPCs) with no fiscal monitor information have been accustomed to apply for funding.

In a few cases, Practically equivalent fiscal statements were created for unrelated organisations, generally with only the names on the organisations altered, GroundUp’s investigation uncovered.

Paperwork submitted by legitimate NPCs for unsuccessful grant programs had been typically utilized by new or hijacked NPCs and NPOs to submit an application for funding. The details and paperwork of your unsuccessful applicants had been provided by senior Lottery officers to your dodgy applicants.

With cursory or - generally - no verification, these dodgy applicants ended up awarded millions of rands in grants. Sometimes supplemental tranches of resources have been paid out without A great deal checking over the progress of assignments.

The overwhelming majority of these grants ended up made through proactive funding, which was at the center of your looting from the lottery. Proactive funding allowed the Minister of Trade, Sector and Competitiveness, or maybe the NLC together with its board, to establish brings about to fund without 1st demanding an software. 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 this time investigating grants valued at over R2-billion, along with the unit was continue to on a regular basis obtaining tip-offs about much more corruption.

He told MPs 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 completed, included R247-million. During the third phase, resulting from be finalised at the conclusion of the year, the SIU is investigating grants valued at Practically R906-million, involving forty NPOs and NPCs, Mothibi claimed.

He reported which the SIU would apply “shortly” for that Presidential Proclamation, at first granted in October 2020 to research corruption involving lottery grants, being extended to include procurement by the NLC.

The SIU investigation experienced thus far resulted in thirteen disciplinary referrals on the NLC, and administrative referrals to SARS and the Companies and Intellectual Properties Fee to blacklist people today implicated while in the looting. Grievances involving two people had been referred into the Legal Exercise Council and also the SA Institute of Chartered Accountants.

The SIU experienced noticed a number of developments beneath the past NLC board and govt - many of whom are implicated in looting - Mothibi told MPs.

This incorporated 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 from the NPA
The SIU has frozen houses, properties, cars as well as other belongings worthy of tens of thousands and thousands that were acquired with lottery money, but MPs expressed problem at sluggish progress in prosecuting All those associated with the looting. (The SIU is mandated only to Get better belongings acquired with stolen state funds and does not have prosecuting powers).

Although the SIU has referred 15 matters for the NPA, to date only two individuals have been brought ahead of a courtroom. Two Guys appeared in court in Kimberley lately in reference to misappropriated cash collected for a project to battle gender-based mostly violence.

In August 2022 Christopher Tshivule was sentenced to eight yrs in prison for his section in the R1.5-million lottery grant fraud. Prices towards two people today charged with him, who the SIU has referred to as “kingpins” in the corruption that overcome the NLC, were being dropped.

Significant-Standard Mmeli Makinyane, the performing divisional commissioner for precedence offences, told MPs that the Hawks have been at this time investigating sixteen lottery corruption-similar cases. An additional a single - the Kimberley issue - is in advance of a courtroom and two are already sent towards the NPA for a call to prosecute. An extra five cases are increasingly being investigated with the SAPS detective and forensic providers, he stated.

Conveying the reasons with the delay in prosecutions, NPA Deputy Nationwide Director Rodney de Kock said Component of The main reason was the Hawks needed to do additional investigations if they received dossiers from your SIU.

“In essence, the investigations carried out via the SIU do not satisfy criminal requirements for prosecutions.”

For that reason, the NPA had to work with investigators within the DPCI (the Hawks) and SAPS to conduct prison investigations and ensure that the proof fulfills criminal prosecution standards, he reported, incorporating: “That said, the work with the SIU is vital and contributes tremendously to this method.”

De Kock mentioned which the SIU’s investigation “usually brings about numerous referrals. The referrals may perhaps in the end end in one docket and a single courtroom circumstance.”

He said that 12 matters, which can be “somewhere around eighty five% finish”, were being being jointly investigated from the Hawks and also the SIU’s Specialised Economic Functions Unit. (The majority of these circumstances, seven of which were being lodged in 2020, require former NLC Main running officer Phillemon Letwaba, who resigned below a cloud in 2022, and Pretoria law firm Leslie Ramulifho.)

De Kock explained the NPA faced various “problems” in prosecuting cases. These, he claimed, integrated

the lapse of time concerning once the offences ended up fully commited and also the issuing on the Presidential Proclamation on one November 2020;
“unavailability of witnesses and/or documentary proof” (Before this calendar year, the SIU told the committee that important documents necessary in a few prosecutions had been deleted in the NLC Personal computer program or had long gone lacking from Metrofile, a warehouse wherever copies of paperwork are archived and stored);
The point that some implicated people today are still employed by NLC; and
A obstacle for the legality from the Presidential Proclamation by previous NLC chairperson Alfred Nevhutanda.
“The NPA is committed to making sure finalisation in these matters. To this conclusion, a group of focused prosecutors is allotted to oversee all NLC matters at this time under investigation,” de Kock explained. “Issues are taken care of as being a priority. The moment [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 one of several five organizations accused with the SIU in Parliament of producing fraudulent annual financial statements,TTP Consulting.

Aubrey Moeng, one of TTP’s two administrators, explained in an electronic mail in reaction to concerns: “Because of shopper confidentiality, we would like to advise that TTP Consulting will not be willing to divulge clients’ fiscal private data with the general public or media … with no consent in the customer or perhaps a authorized motive.”

The business can be a “spouse” of several state entities, like SARS as well as CIPC, Based on its Site.

Neither of the two directors of Dzata Accountants, who're each outlined as inactive around the CIPC sign up of providers, responded to emailed issues. The business continues to be deregistered by the CIPC for failing to post monetary statements since 2021.

The only director of Mageba Ntuli Trading and Consulting Provider, Patrick Zulu, died three yrs back, In line with Formal documents. The organization was deregistered because of the CIPC for failing to post financial statements given that 2021.

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

GroundUp was unable to discover any listing for Tafta Consulting and Accounting Providers Together with the CIPC. We ended up also not able to trace any of the organization’s administrators to ask for comment.

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