The Unique Investigating Device has determined five accounting companies that helped loot Lottery cash. Graphic: Lisa Nelson
The Distinctive Investigating Unit has discovered five accounting and auditing corporations that helped non-profit firms loot Lottery revenue meant for “excellent will cause”.
The accounting firms compiled fraudulent economical statements used by these providers to apply for Lottery funding, the SIU told Parliament.
Acting chief nationwide investigations officer Zodwa Xesibe mentioned the SIU would choose motion to acquire these corporations blacklisted.
A 4-year probe by the หวย ลาว วัน นี้ Specific Investigating Unit (SIU) has exposed five accounting and auditing corporations that aided dodgy non-earnings organizations loot hundreds of an incredible number of rands intended for “great leads to” within the Lottery.
These firms had been described by the SIU as “Specialist enablers,” who “compiled fraudulent financial statements” that were employed by the companies to make an application for Lottery funding.
The five businesses were named in Parliament through the SIU’s acting chief national investigations officer Zodwa Xesibe. They're TTP Consulting, Dzata Accountants, Magodi Consulting, Mageba Ntuli Consulting and Tafta Consulting and Accounting Providers.
Fraudulent financials made by these five accounting firms served nearly 40 organizations get their hands on lottery funding, according to the SIU presentation.
Based upon a Software containing details with all lottery grants since 2002, these firms got over R314-million in funding.
“These NPCs ended up funded via the National Lotteries Commission (NLC) though the money weren't used for their supposed purpose,” Xesibe told Parliament’s Trade, Field and Competition Portfolio Committee previous 7 days.
The SIU, the Hawks and the Nationwide Prosecuting Authority (NPA) had been in Parliament to report to the committee on development in bringing persons and organisations associated with looting the lottery to guide.
Xesibe explained to GroundUp that the SIU intended to lodge issues towards the accounting corporations associated and was examining if these corporations were registered and, If that is so, with which Experienced bodies.
“We would like these organizations to get blacklisted,” she informed GroundUp.
To qualify for Lottery funding, an organisation was required to deliver two years of yearly fiscal statements, Xesibe described in Parliament.
Nevertheless, as an ongoing six-yr investigation into lottery corruption by GroundUp has discovered, hijacked non-profit organisations (NPOs) or new shelf non-gain companies (NPCs) with no fiscal observe data ended up utilized to apply for funding.
In some circumstances, Just about similar money statements had been manufactured for unrelated organisations, typically with just the names on the organisations altered, GroundUp’s investigation discovered.
Files submitted by real NPCs for unsuccessful grant purposes have been normally used by new or hijacked NPCs and NPOs to apply for funding. The details and paperwork in the unsuccessful applicants were being supplied by senior Lottery officials to your dodgy applicants.
With cursory or - typically - no verification, these dodgy applicants were being awarded millions of rands in grants. From time to time additional tranches of funds have been paid out out without having A great deal examining on the development of initiatives.
The overwhelming majority of those grants had been designed by using proactive funding, which was at the center of the looting of the lottery. Proactive funding permitted the Minister of Trade, Market and Levels of competition, or even the NLC at the side of its board, to establish results in to fund without having to start with demanding an application. This was stopped every time a new NLC board was appointed.
R2-billion in grants under investigation
SIU head Advocate Andy Mothibi explained the SIU was at the moment investigating grants valued at about R2-billion, and the unit was nonetheless routinely getting tip-offs about much more corruption.
He informed MPs the SIU’s investigation were broken into a few phases: the primary, that has been finalised, probed dodgy grants amounting to R280-million, and the next, also finished, concerned R247-million. In 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 reported.
He said that the SIU would apply “before long” for the Presidential Proclamation, originally granted in Oct 2020 to analyze corruption involving lottery grants, to be extended to incorporate procurement via the NLC.
The SIU investigation experienced up to now resulted in 13 disciplinary referrals on the NLC, and administrative referrals to SARS and the Companies and Intellectual Attributes Fee to blacklist persons implicated during the looting. Problems involving two persons had been referred into the Lawful Apply Council as well as the SA Institute of Chartered Accountants.
The SIU had observed several tendencies underneath the past NLC board and govt - many of whom are implicated in looting - Mothibi explained to MPs.
This incorporated a “pattern of collusion concerning NLC officers and NPOs and NPCs”, “the hijacking of NPOs and NPCs” and “basic maladministration within the acceptance of grants,” he claimed.
Gradual progress through the NPA
The SIU has frozen houses, Houses, vehicles along with other belongings well worth tens of millions that were bought with lottery money, but MPs expressed worry at slow progress in prosecuting People involved with the looting. (The SIU is mandated only to recover belongings purchased with stolen point out funds and doesn't have prosecuting powers).
Whilst the SIU has referred fifteen issues towards the NPA, thus far only two individuals have been introduced just before a courtroom. Two Males appeared in courtroom in Kimberley lately in connection with misappropriated cash collected for the project to overcome gender-centered violence.
In August 2022 Christopher Tshivule was sentenced to 8 years in prison for his portion in the R1.five-million lottery grant fraud. Prices from two people today billed with him, who the SIU has referred to as “kingpins” inside the corruption that overwhelmed the NLC, were being dropped.
Big-Normal Mmeli Makinyane, the acting divisional commissioner for precedence offences, advised MPs which the Hawks ended up at this time investigating 16 lottery corruption-linked circumstances. Another just one - the Kimberley matter - is just before a courtroom and two happen to be sent to your NPA for a call to prosecute. An extra 5 circumstances are now being investigated by the SAPS detective and forensic providers, he explained.
Outlining the reasons with the hold off in prosecutions, NPA Deputy National Director Rodney de Kock said Element of The key reason why was the Hawks needed to do even further investigations every time they received dossiers in the SIU.
“In essence, the investigations carried out because of the SIU tend not to fulfill legal expectations for prosecutions.”
Consequently, the NPA experienced to operate with investigators inside the DPCI (the Hawks) and SAPS to perform criminal investigations and make sure that the evidence fulfills felony prosecution benchmarks, he claimed, introducing: “Having said that, the operate of the SIU is vital and contributes considerably to this method.”
De Kock claimed the SIU’s investigation “normally ends in a number of referrals. The referrals could ultimately bring about just one docket and 1 court case.”
He reported that twelve issues, which happen to be “about eighty five% total”, ended up becoming jointly investigated with the Hawks and also the SIU’s Specialised Economic Functions Device. (A large number of scenarios, seven of which have been lodged in 2020, include previous NLC Main operating officer Phillemon Letwaba, who resigned beneath a cloud in 2022, and Pretoria law firm Leslie Ramulifho.)
De Kock stated the NPA faced a number of “problems” in prosecuting circumstances. These, he explained, bundled
the lapse of your time amongst once the offences were fully commited as well as issuing of the Presidential Proclamation on one November 2020;
“unavailability of witnesses and/or documentary evidence” (Before this 12 months, the SIU advised the committee that important files wanted in some prosecutions had been deleted from the NLC computer process or experienced long gone lacking from Metrofile, a warehouse where copies of files are archived and saved);
the fact that some implicated folks are still employed by NLC; and
A challenge on the legality with the Presidential Proclamation by former NLC chairperson Alfred Nevhutanda.
“The NPA is devoted to making sure finalisation in these issues. To this stop, a group of dedicated prosecutors is allocated to supervise all NLC issues at this time beneath investigation,” de Kock said. “Issues are taken care of being a precedence. After [the] investigations are completed, the NPA is likely to make a call.”
What the companies say (or don’t)
GroundUp was only able to get comment from among the 5 firms accused from the SIU in Parliament of manufacturing fraudulent once-a-year economic statements,TTP Consulting.
Aubrey Moeng, considered one of TTP’s two administrators, said in an email in response to concerns: “Resulting from shopper confidentiality, we want to recommend that TTP Consulting is not really ready to divulge clients’ financial private facts with the public or media … with no consent with the client or a authorized reason.”
The organization can be a “companion” of various point out entities, including SARS as well as the CIPC, according to its Web site.
Neither of the two administrators of Dzata Accountants, who will be both of those mentioned as inactive on the CIPC sign up of providers, responded to emailed thoughts. The company has been deregistered by the CIPC for failing to post economical statements since 2021.
The only real director of Mageba Ntuli Buying and selling and Consulting Services, Patrick Zulu, died a few a long time back, In line with Formal information. The company was deregistered because of the CIPC for failing to post money statements due to the fact 2021.
Matamela Magodi, the sole director of Magodi Consultants, did not respond to thoughts emailed to him.
GroundUp was unable to obtain any listing for Tafta Consulting and Accounting Companies Using the CIPC. We ended up also struggling to trace any of the company’s administrators to request remark.
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