The accountants who served loot the Lottery

The accountants who served loot the Lottery

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The Particular Investigating Unit has discovered 5 accounting firms that helped loot Lottery resources. Graphic: Lisa Nelson

The Special Investigating Device has discovered 5 accounting and auditing companies that helped non-income corporations loot Lottery dollars meant for “excellent leads to”.
The accounting corporations compiled fraudulent economic statements used by these providers to make an application for Lottery funding, the SIU told Parliament.
Acting Main national investigations officer Zodwa Xesibe reported the SIU would just take motion to acquire these firms blacklisted.
A 4-calendar year probe through the ตรวจ สลาก Exclusive Investigating Unit (SIU) has exposed 5 accounting and auditing corporations that helped dodgy non-income businesses loot countless millions of rands meant for “excellent will cause” from the Lottery.

These firms were explained by the SIU as “Expert enablers,” who “compiled fraudulent monetary statements” that were employed by the businesses to make an application for Lottery funding.

The five companies were named in Parliament via the SIU’s acting chief countrywide investigations officer Zodwa Xesibe. They are TTP Consulting, Dzata Accountants, Magodi Consulting, Mageba Ntuli Consulting and Tafta Consulting and Accounting Solutions.

Fraudulent financials made by these five accounting corporations assisted almost forty businesses get their palms on lottery funding, according to the SIU presentation.

According to a Software that contains data with all lottery grants due to the fact 2002, these companies acquired around R314-million in funding.

“These NPCs were funded with the Nationwide Lotteries Commission (NLC) although the resources weren't used for his or her supposed intent,” Xesibe explained to Parliament’s Trade, Marketplace and Competition Portfolio Committee past week.

The SIU, the Hawks plus the Nationwide Prosecuting Authority (NPA) had been in Parliament to report back to the committee on progress in bringing people and organisations linked to looting the lottery to ebook.

Xesibe informed GroundUp the SIU meant to lodge problems versus the accounting firms associated and was checking if these corporations were being registered and, if so, with which Skilled bodies.

“We would like these providers to become blacklisted,” she informed GroundUp.

To qualify for Lottery funding, an organisation was required to generate two several years of annual monetary statements, Xesibe explained in Parliament.

Having said that, as an ongoing six-calendar year investigation into lottery corruption by GroundUp has revealed, hijacked non-income organisations (NPOs) or new shelf non-profit firms (NPCs) without financial track information ended up accustomed to submit an application for funding.

In some circumstances, Practically identical money statements ended up manufactured for unrelated organisations, generally with only the names with the organisations transformed, GroundUp’s investigation uncovered.

Paperwork submitted by genuine NPCs for unsuccessful grant purposes ended up typically utilized by new or hijacked NPCs and NPOs to apply for funding. The details and files on the unsuccessful applicants had been supplied by senior Lottery officials into the dodgy applicants.

With cursory or - often - no verification, these dodgy applicants ended up awarded an incredible number of rands in grants. In some cases extra tranches of funds have been paid out out without Considerably checking to the progress of tasks.

The vast majority of these grants were made via proactive funding, which was at the guts in the looting from the lottery. Proactive funding authorized the Minister of Trade, Field and Competition, or even the NLC in conjunction with its board, to detect triggers to fund without the need of very first demanding an software. This was stopped any time a new NLC board was appointed.

R2-billion in grants under investigation
SIU head Advocate Andy Mothibi explained the SIU was now investigating grants valued at about R2-billion, and the unit was even now regularly receiving idea-offs about extra corruption.

He instructed MPs that the SIU’s investigation had been damaged into three phases: the 1st, that has been finalised, probed dodgy grants amounting to R280-million, and the 2nd, also accomplished, associated R247-million. In the third stage, as a consequence of be finalised at the conclusion of the year, the SIU is investigating grants valued at Pretty much R906-million, involving 40 NPOs and NPCs, Mothibi explained.

He claimed the SIU would implement “shortly” to the Presidential Proclamation, initially granted in October 2020 to analyze corruption involving lottery grants, being extended to incorporate procurement because of the NLC.

The SIU investigation had so far triggered 13 disciplinary referrals to the NLC, and administrative referrals to SARS and the businesses and Mental Homes Fee to blacklist men and women implicated in the looting. Issues involving two people were referred to the Authorized Exercise Council and also the SA Institute of Chartered Accountants.

The SIU had observed various traits under the prior NLC board and executive - a lot of whom are actually implicated in looting - Mothibi explained to MPs.

This included a “development of collusion between NLC officers and NPOs and NPCs”, “the hijacking of NPOs and NPCs” and “typical maladministration during the acceptance of grants,” he mentioned.

Slow development with the NPA
The SIU has frozen properties, Qualities, cars as well as other belongings worthy of tens of thousands and thousands which were bought with lottery cash, but MPs expressed problem at sluggish progress in prosecuting Individuals involved with the looting. (The SIU is mandated only to Get well property bought with stolen state resources and does not have prosecuting powers).

Although the SIU has referred 15 issues on the NPA, to date only two people have been introduced ahead of a court. Two Adult males appeared in courtroom in Kimberley lately in reference to misappropriated funds collected for just a job to combat gender-centered violence.

In August 2022 Christopher Tshivule was sentenced to 8 several years in jail for his element in a very R1.five-million lottery grant fraud. Costs in opposition to two people charged with him, who the SIU has described as “kingpins” within the corruption that overwhelmed the NLC, had been dropped.

Key-Standard Mmeli Makinyane, the acting divisional commissioner for priority offences, informed MPs that the Hawks had been at present investigating 16 lottery corruption-related cases. A further a single - the Kimberley make a difference - is before a court docket and two have already been despatched on the NPA for a decision to prosecute. An additional five scenarios are being investigated because of the SAPS detective and forensic providers, he reported.

Detailing The explanations for the delay in prosecutions, NPA Deputy Nationwide Director Rodney de Kock reported A part of The rationale was which the Hawks needed to do further more investigations once they obtained dossiers with the SIU.

“In essence, the investigations undertaken through the SIU usually do not satisfy prison benchmarks for prosecutions.”

Thus, the NPA had to operate with investigators from the DPCI (the Hawks) and SAPS to carry out criminal investigations and make sure the evidence satisfies legal prosecution specifications, he reported, including: “Having said that, the get the job done of the SIU is important and contributes considerably to this method.”

De Kock said the SIU’s investigation “generally brings about numerous referrals. The referrals may possibly finally bring about one docket and a single courtroom situation.”

He mentioned that 12 matters, that are “roughly eighty five% complete”, were remaining jointly investigated via the Hawks as well as SIU’s Specialised Financial Functions Unit. (Most of these cases, seven of which were lodged in 2020, entail previous NLC chief functioning officer Phillemon Letwaba, who resigned beneath a cloud in 2022, and Pretoria law firm Leslie Ramulifho.)

De Kock stated the NPA faced quite a few “problems” in prosecuting conditions. These, he stated, provided

the lapse of your time concerning in the event the offences were committed as well as the issuing with the Presidential Proclamation on 1 November 2020;
“unavailability of witnesses and/or documentary evidence” (Earlier this year, the SIU informed the committee that important documents needed in certain prosecutions had been deleted from your NLC Personal computer method or experienced absent missing from Metrofile, a warehouse wherever copies of paperwork are archived and saved);
The reality that some implicated people remain used by NLC; and
A problem to the legality on the Presidential Proclamation by previous NLC chairperson Alfred Nevhutanda.
“The NPA is committed to guaranteeing finalisation in these issues. To this end, a workforce of committed prosecutors continues to be allotted to oversee all NLC matters currently beneath investigation,” de Kock claimed. “Matters are managed being a precedence. As soon as [the] investigations are concluded, the NPA could make a choice.”

What the businesses say (or don’t)
GroundUp was only in a position to get comment from on the list of five firms accused because of the SIU in Parliament of manufacturing fraudulent once-a-year economical statements,TTP Consulting.

Aubrey Moeng, certainly one of TTP’s two directors, stated in an email in reaction to questions: “Due to shopper confidentiality, we prefer to recommend that TTP Consulting is not ready to divulge clients’ money confidential information and facts with the public or media … with no consent on the shopper or possibly a lawful cause.”

The corporation is actually a “lover” of a number of condition entities, together with SARS and also the CIPC, In keeping with its Site.

Neither of the two directors of Dzata Accountants, who are the two shown as inactive about the CIPC sign-up of firms, responded to emailed inquiries. The business has become deregistered through the CIPC for failing to submit economical statements considering the fact that 2021.

The only director of Mageba Ntuli Trading and Consulting Company, Patrick Zulu, died three decades in the past, according to official documents. The organization was deregistered via the CIPC for failing to submit monetary statements considering the fact that 2021.

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

GroundUp was struggling to discover any listing for Tafta Consulting and Accounting Companies While using the CIPC. We were being also struggling to trace any of the company’s administrators to request comment.

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