The accountants who assisted loot the Lottery

The accountants who assisted loot the Lottery

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The Specific Investigating Device has discovered five accounting corporations that helped loot Lottery resources. Graphic: Lisa Nelson

The Exclusive Investigating Device has recognized five accounting and auditing corporations that helped non-profit firms loot Lottery money intended for “very good will cause”.
The accounting corporations compiled fraudulent economical statements used by these businesses to apply for Lottery funding, the SIU informed Parliament.
Performing Main nationwide investigations officer Zodwa Xesibe claimed the SIU would consider action to possess these corporations blacklisted.
A four-year probe by the ผล หวย หุ้น Exclusive Investigating Unit (SIU) has exposed 5 accounting and auditing corporations that served dodgy non-gain providers loot many hundreds of millions of rands designed for “excellent brings about” from your Lottery.

These firms ended up described through the SIU as “professional enablers,” who “compiled fraudulent financial statements” that were used by the companies to submit an application for Lottery funding.

The five firms had been named in Parliament because of the SIU’s acting chief countrywide investigations officer Zodwa Xesibe. They're TTP Consulting, Dzata Accountants, Magodi Consulting, Mageba Ntuli Consulting and Tafta Consulting and Accounting Products and services.

Fraudulent financials made by these 5 accounting corporations served approximately 40 corporations get their hands on lottery funding, according to the SIU presentation.

According to a tool containing facts with all lottery grants due to the fact 2002, these organizations acquired in excess of R314-million in funding.

“These NPCs have been funded via the National Lotteries Fee (NLC) however the resources weren't utilised for their supposed function,” Xesibe instructed Parliament’s Trade, Sector and Opposition Portfolio Committee final 7 days.

The SIU, the Hawks as well as the National Prosecuting Authority (NPA) were in Parliament to report back to the committee on development in bringing men and women and organisations involved in looting the lottery to guide.

Xesibe advised GroundUp the SIU intended to lodge complaints from the accounting corporations associated and was examining if these firms ended up registered and, In that case, with which Expert bodies.

“We want these organizations to be blacklisted,” she explained to GroundUp.

To qualify for Lottery funding, an organisation was needed to produce two many years of annual monetary statements, Xesibe stated in Parliament.

Having said that, being an ongoing 6-year investigation into lottery corruption by GroundUp has unveiled, hijacked non-earnings organisations (NPOs) or new shelf non-financial gain businesses (NPCs) with no economic monitor information have been accustomed to make an application for funding.

In a few cases, Just about similar economic statements have been developed for unrelated organisations, usually with only the names of your organisations altered, GroundUp’s investigation discovered.

Files submitted by authentic NPCs for unsuccessful grant applications have been often employed by new or hijacked NPCs and NPOs to make an application for funding. The main points and documents of the unsuccessful applicants ended up equipped by senior Lottery officers to the dodgy applicants.

With cursory or - usually - no verification, these dodgy applicants were being awarded millions of rands in grants. Occasionally additional tranches of funds were being compensated out without the need of much checking about the progress of tasks.

The vast majority of those grants ended up designed by means of proactive funding, which was at the heart of the looting from the lottery. Proactive funding authorized the Minister of Trade, Marketplace and Level of competition, or maybe the NLC along side its board, to discover leads to to fund devoid of initial necessitating an software. This was stopped whenever a new NLC board was appointed.

R2-billion in grants underneath investigation
SIU head Advocate Andy Mothibi said the SIU was at the moment investigating grants valued at around R2-billion, and also the unit was continue to consistently receiving tip-offs about a lot more corruption.

He instructed MPs the SIU’s investigation had been damaged into 3 phases: the main, which has been finalised, probed dodgy grants amounting to R280-million, and the next, also finished, included R247-million. While in the 3rd stage, on account of be finalised at the conclusion of the 12 months, the SIU is investigating grants valued at Practically R906-million, involving forty NPOs and NPCs, Mothibi explained.

He reported which the SIU would implement “before long” for the Presidential Proclamation, initially granted in October 2020 to research corruption involving lottery grants, to be extended to include procurement through the NLC.

The SIU investigation had to this point triggered 13 disciplinary referrals for the NLC, and administrative referrals to SARS and the Companies and Intellectual Attributes Fee to blacklist people implicated inside the looting. Complaints involving two folks had been referred for the Lawful Exercise Council plus the SA Institute of Chartered Accountants.

The SIU experienced noticed numerous traits beneath the former NLC board and government - lots of whom have already been implicated in looting - Mothibi explained to MPs.

This integrated a “pattern of collusion concerning NLC officers and NPOs and NPCs”, “the hijacking of NPOs and NPCs” and “basic maladministration while in the acceptance of grants,” he said.

Slow progress from the NPA
The SIU has frozen properties, properties, cars and also other assets really worth tens of hundreds of thousands which were acquired with lottery cash, but MPs expressed problem at gradual progress in prosecuting those involved in the looting. (The SIU is mandated only to recover property acquired with stolen state resources and doesn't have prosecuting powers).

Although the SIU has referred fifteen issues on the NPA, so far only two individuals have been introduced in advance of a court. Two Gentlemen appeared in court in Kimberley recently in connection with misappropriated cash gathered for any challenge to combat gender-primarily based violence.

In August 2022 Christopher Tshivule was sentenced to 8 years in jail for his element inside a R1.5-million lottery grant fraud. Fees from two individuals billed with him, who the SIU has called “kingpins” while in the corruption that overcome the NLC, have been dropped.

Key-Normal Mmeli Makinyane, the performing divisional commissioner for precedence offences, told MPs which the Hawks were being at this time investigating 16 lottery corruption-associated cases. A further one particular - the Kimberley make a difference - is right before a court docket and two are already despatched into the NPA for a decision to prosecute. An additional 5 situations are increasingly being investigated through the SAPS detective and forensic solutions, he claimed.

Conveying The explanations for that delay in prosecutions, NPA Deputy National Director Rodney de Kock stated Portion of The rationale was the Hawks needed to do further more investigations every time they been given dossiers through the SIU.

“In essence, the investigations undertaken by the SIU will not fulfill legal expectations for prosecutions.”

Consequently, the NPA had to work with investigators within the DPCI (the Hawks) and SAPS to carry out felony investigations and make sure that the proof fulfills criminal prosecution benchmarks, he explained, introducing: “Having said that, the function with the SIU is very important and contributes significantly to this process.”

De Kock mentioned the SIU’s investigation “generally leads to a number of referrals. The referrals may well in the long run cause one particular docket and just one courtroom situation.”

He said that twelve matters, which might be “somewhere around 85% complete”, ended up getting jointly investigated from the Hawks as well as SIU’s Specialised Economic Operations Device. (A large number of situations, seven of which ended up lodged in 2020, require previous NLC chief working officer Phillemon Letwaba, who resigned underneath a cloud in 2022, and Pretoria law firm Leslie Ramulifho.)

De Kock said the NPA confronted various “difficulties” in prosecuting scenarios. These, he claimed, provided

the lapse of your time involving in the event the offences were fully commited and the issuing of your 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 necessary in some prosecutions were deleted from your NLC computer technique or experienced gone missing from Metrofile, a warehouse where copies of paperwork are archived and stored);
the fact that some implicated men and women remain used by NLC; and
A challenge for the legality on the Presidential Proclamation by former NLC chairperson Alfred Nevhutanda.
“The NPA is dedicated to making sure finalisation in these issues. To this conclusion, a workforce of committed prosecutors has long been allotted to oversee all NLC matters presently less than investigation,” de Kock reported. “Issues are dealt with as a precedence. When [the] investigations are finished, the NPA could make a choice.”

What the businesses say (or don’t)
GroundUp was only capable of get comment from one of several five businesses accused from the SIU in Parliament of producing fraudulent once-a-year monetary statements,TTP Consulting.

Aubrey Moeng, considered one of TTP’s two administrators, claimed within an email in response to concerns: “Resulting from shopper confidentiality, we need to recommend that TTP Consulting is just not ready to divulge consumers’ money private information and facts with the general public or media … without the consent of the customer or even a legal purpose.”

The business is actually a “companion” of several condition entities, together with SARS along with the CIPC, In accordance with its Web-site.

Neither of The 2 directors of Dzata Accountants, who're both equally mentioned as inactive within the CIPC register of firms, responded to emailed inquiries. The corporation has been deregistered by the CIPC for failing to post money statements due to the fact 2021.

The sole director of Mageba Ntuli Investing and Consulting Provider, Patrick Zulu, died three yrs in the past, In accordance with official documents. The corporate was deregistered through the CIPC for failing to post economic statements given that 2021.

Matamela Magodi, the only real director of Magodi Consultants, didn't respond to inquiries emailed to him.

GroundUp was unable to come across any listing for Tafta Consulting and Accounting Providers Using the CIPC. We ended up also struggling to trace any of the company’s administrators to request remark.

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