The accountants who aided loot the Lottery

The accountants who aided loot the Lottery

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The Particular Investigating Device has discovered five accounting corporations that served loot Lottery money. Graphic: Lisa Nelson

The Distinctive Investigating Unit has determined five accounting and auditing corporations that assisted non-earnings firms loot Lottery dollars intended for “superior brings about”.
The accounting corporations compiled fraudulent financial statements utilized by these organizations to make an application for Lottery funding, the SIU instructed Parliament.
Acting chief nationwide investigations officer Zodwa Xesibe mentioned the SIU would consider action to obtain these corporations blacklisted.
A 4-12 months probe via the ตรวจ สลาก Specific Investigating Unit (SIU) has uncovered 5 accounting and auditing corporations that served dodgy non-financial gain companies loot countless an incredible number of rands designed for “very good will cause” from the Lottery.

These companies were being described through the SIU as “Experienced enablers,” who “compiled fraudulent monetary statements” which were used by the businesses to make an application for Lottery funding.

The five organizations had been named in Parliament via the SIU’s acting Main countrywide investigations officer Zodwa Xesibe. These are TTP Consulting, Dzata Accountants, Magodi Consulting, Mageba Ntuli Consulting and Tafta Consulting and Accounting Services.

Fraudulent financials produced by these five accounting companies helped almost 40 companies get their fingers on lottery funding, based on the SIU presentation.

Dependant on a tool that contains facts with all lottery grants considering the fact that 2002, these providers acquired about R314-million in funding.

“These NPCs ended up funded because of the National Lotteries Fee (NLC) although the funds weren't utilised for their meant reason,” Xesibe explained to Parliament’s Trade, Business and Level of competition Portfolio Committee past 7 days.

The SIU, the Hawks and the National Prosecuting Authority (NPA) have been in Parliament to report to the committee on progress in bringing people today and organisations involved with looting the lottery to guide.

Xesibe told GroundUp the SIU intended to lodge problems in opposition to the accounting firms involved and was examining if these companies ended up registered and, If that's so, with which Skilled bodies.

“We want these companies for being blacklisted,” she informed GroundUp.

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

Even so, being an ongoing 6-year investigation into lottery corruption by GroundUp has uncovered, hijacked non-income organisations (NPOs) or new shelf non-profit corporations (NPCs) without economic observe data were used to submit an application for funding.

In certain instances, almost equivalent economical statements were being manufactured for unrelated organisations, generally with only the names of the organisations altered, GroundUp’s investigation uncovered.

Paperwork submitted by authentic NPCs for unsuccessful grant applications were being generally used by new or hijacked NPCs and NPOs to submit an application for funding. The small print and files in the unsuccessful applicants were provided by senior Lottery officers to your dodgy applicants.

With cursory or - usually - no verification, these dodgy applicants ended up awarded countless rands in grants. Often additional tranches of cash were being compensated out without Significantly checking around the progress of projects.

The overwhelming majority of these grants had been manufactured by way of proactive funding, which was at the heart of your looting from the lottery. Proactive funding allowed the Minister of Trade, Sector and Competition, or perhaps the NLC together with its board, to detect leads to to fund devoid of first requiring an application. This was stopped any time a new NLC board was appointed.

R2-billion in grants below investigation
SIU head Advocate Andy Mothibi claimed the SIU was currently investigating grants valued at more than R2-billion, as well as the unit was nonetheless frequently receiving idea-offs about a lot more corruption.

He instructed MPs the SIU’s investigation had been broken into a few phases: the primary, which has been finalised, probed dodgy grants amounting to R280-million, and the second, also completed, included R247-million. While in the third stage, because of be finalised at the conclusion of the year, the SIU is investigating grants valued at almost R906-million, involving 40 NPOs and NPCs, Mothibi claimed.

He mentioned the SIU would implement “soon” for your Presidential Proclamation, originally granted in Oct 2020 to analyze corruption involving lottery grants, to become prolonged to incorporate procurement because of the NLC.

The SIU investigation experienced so far led to 13 disciplinary referrals for the NLC, and administrative referrals to SARS and the Companies and Mental Attributes Fee to blacklist persons implicated inside the looting. Issues involving two persons had been referred to the Lawful Exercise Council and the SA Institute of Chartered Accountants.

The SIU experienced observed various trends beneath the former NLC board and executive - lots of whom have already been 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 “standard maladministration during the acceptance of grants,” he explained.

Gradual development via the NPA
The SIU has frozen homes, Qualities, automobiles and other belongings well worth tens of thousands and thousands which were purchased with lottery cash, but MPs expressed worry at slow development in prosecuting People associated with the looting. (The SIU is mandated only to recover belongings purchased with stolen point out funds and does not have prosecuting powers).

Whilst the SIU has referred 15 issues for the NPA, to this point only two people have been brought before a courtroom. Two men appeared in courtroom in Kimberley just lately in connection with misappropriated cash collected for the challenge to combat gender-primarily based violence.

In August 2022 Christopher Tshivule was sentenced to eight several years in prison for his element in a very R1.5-million lottery grant fraud. Rates versus two men and women billed with him, who the SIU has described as “kingpins” while in the corruption that overcome the NLC, ended up dropped.

Significant-Standard Mmeli Makinyane, the performing divisional commissioner for precedence offences, informed MPs which the Hawks were being at present investigating sixteen lottery corruption-similar circumstances. An additional a person - the Kimberley make any difference - is right before a court docket and two are actually sent towards the NPA for a choice to prosecute. A further five instances are increasingly being investigated because of the SAPS detective and forensic providers, he claimed.

Describing The explanations for your delay in prosecutions, NPA Deputy Nationwide Director Rodney de Kock stated Component of The main reason was that the Hawks had to do even more investigations if they gained dossiers through the SIU.

“In essence, the investigations undertaken from the SIU usually do not satisfy criminal criteria for prosecutions.”

Hence, the NPA experienced to work with investigators within the DPCI (the Hawks) and SAPS to conduct legal investigations and ensure that the proof fulfills prison prosecution requirements, he said, including: “That said, the function in the SIU is crucial and contributes significantly to this process.”

De Kock claimed that the SIU’s investigation “frequently results in a number of referrals. The referrals may well eventually end in one particular docket and a single court scenario.”

He mentioned that twelve matters, that happen to be “around eighty five% comprehensive”, have been being jointly investigated with the Hawks as well as the SIU’s Specialised Economic Functions Device. (The majority of these cases, 7 of which had been lodged in 2020, contain former NLC chief working officer Phillemon Letwaba, who resigned underneath a cloud in 2022, and Pretoria attorney Leslie Ramulifho.)

De Kock explained the NPA faced many “worries” in prosecuting cases. These, he said, provided

the lapse of time in between when the offences were being dedicated as well as issuing of the Presidential Proclamation on one November 2020;
“unavailability of witnesses and/or documentary evidence” (Earlier this calendar year, the SIU instructed the committee that crucial files essential in some prosecutions were deleted in the NLC Laptop or computer method or had absent lacking from Metrofile, a warehouse where by copies of documents are archived and stored);
The reality that some implicated individuals remain used by NLC; and
A obstacle to the legality of the Presidential Proclamation by previous NLC chairperson Alfred Nevhutanda.
“The NPA is dedicated to making certain finalisation in these issues. To this end, a group of focused prosecutors continues to be allotted to supervise all NLC matters presently under investigation,” de Kock reported. “Matters are handled for a priority. Once [the] investigations are concluded, the NPA can make a call.”

What the companies say (or don’t)
GroundUp was only ready to get comment from one of the five companies accused because of the SIU in Parliament of manufacturing fraudulent annual fiscal statements,TTP Consulting.

Aubrey Moeng, amongst TTP’s two administrators, said within an electronic mail in reaction to thoughts: “As a result of consumer confidentiality, we prefer to suggest that TTP Consulting just isn't willing to divulge clientele’ economic private information and facts with the public or media … with no consent on the client or simply a lawful cause.”

The company can be a “partner” of many point out entities, such as SARS plus the CIPC, In line with its Web-site.

Neither of the two directors of Dzata Accountants, who're equally mentioned as inactive around the CIPC register of businesses, responded to emailed inquiries. The corporate has long been deregistered via the CIPC for failing to post monetary statements given that 2021.

The sole director of Mageba Ntuli Buying and selling and Consulting Support, Patrick Zulu, died a few a long time ago, In keeping with official information. The company was deregistered with the CIPC for failing to post economic statements because 2021.

Matamela Magodi, the only director of Magodi Consultants, didn't reply to concerns emailed to him.

GroundUp was struggling to obtain any listing for Tafta Consulting and Accounting Providers Along with the CIPC. We were being also struggling to trace any of the corporation’s administrators to request comment.

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