The accountants who helped loot the Lottery

The accountants who helped loot the Lottery

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The Particular Investigating Device has recognized five accounting corporations that aided loot Lottery funds. Graphic: Lisa Nelson

The Special Investigating Device has determined five accounting and auditing companies that helped non-profit providers loot Lottery funds meant for “excellent leads to”.
The accounting companies compiled fraudulent economic statements employed by these businesses to make an application for Lottery funding, the SIU explained to Parliament.
Acting Main nationwide investigations officer Zodwa Xesibe claimed the SIU would choose motion to get these firms blacklisted.
A four-year probe because of the หวย Specific Investigating Unit (SIU) has uncovered five accounting and auditing companies that aided dodgy non-income businesses loot hundreds of many rands intended for “superior will cause” with the Lottery.

These firms had been described via the SIU as “Specialist enablers,” who “compiled fraudulent fiscal statements” that were used by the businesses to apply for Lottery funding.

The five corporations ended up named in Parliament by the SIU’s acting chief national investigations officer Zodwa Xesibe. They can be TTP Consulting, Dzata Accountants, Magodi Consulting, Mageba Ntuli Consulting and Tafta Consulting and Accounting Products and services.

Fraudulent financials made by these 5 accounting firms helped nearly forty providers get their arms on lottery funding, in accordance with the SIU presentation.

Depending on a Device made up of knowledge with all lottery grants because 2002, these corporations obtained around R314-million in funding.

“These NPCs have been funded via the Nationwide Lotteries Fee (NLC) although the money were not employed for their meant objective,” Xesibe explained to Parliament’s Trade, Marketplace and Level of competition Portfolio Committee very last 7 days.

The SIU, the Hawks as well as the National Prosecuting Authority (NPA) have been in Parliament to report back to the committee on development in bringing individuals and organisations associated with looting the lottery to reserve.

Xesibe informed GroundUp the SIU intended to lodge issues towards the accounting companies included and was examining if these companies ended up registered and, if so, with which Specialist bodies.

“We would like these organizations to get blacklisted,” she instructed GroundUp.

To qualify for Lottery funding, an organisation was required to generate two a long time of annual financial statements, Xesibe discussed in Parliament.

Nonetheless, being an ongoing 6-yr investigation into lottery corruption by GroundUp has revealed, hijacked non-income organisations (NPOs) or new shelf non-profit firms (NPCs) without any fiscal keep track of records have been accustomed to submit an application for funding.

In a few instances, Pretty much equivalent monetary statements had been generated for unrelated organisations, generally with just the names of your organisations improved, GroundUp’s investigation uncovered.

Paperwork submitted by authentic NPCs for unsuccessful grant programs had been frequently utilized by new or hijacked NPCs and NPOs to apply for funding. The details and paperwork of your unsuccessful applicants had been provided by senior Lottery officers to your dodgy applicants.

With cursory or - usually - no verification, these dodgy applicants ended up awarded numerous rands in grants. Often more tranches of money have been paid out out without having Considerably checking within the progress of assignments.

The overwhelming majority of those grants were built by way of proactive funding, which was at the guts in the looting of your lottery. Proactive funding authorized the Minister of Trade, Sector and Level of competition, or perhaps the NLC along with its board, to determine results in to fund with out 1st demanding an software. This was stopped any time a new NLC board was appointed.

R2-billion in grants less than investigation
SIU head Advocate Andy Mothibi said the SIU was currently investigating grants valued at in excess of R2-billion, and the device was nonetheless often getting tip-offs about a lot more corruption.

He informed MPs which the SIU’s investigation were broken into three phases: the primary, which has been finalised, probed dodgy grants amounting to R280-million, and the next, also accomplished, concerned R247-million. In the 3rd stage, due to be finalised at the conclusion of the 12 months, the SIU is investigating grants valued at Nearly R906-million, involving 40 NPOs and NPCs, Mothibi claimed.

He said that the SIU would implement “before long” for your Presidential Proclamation, initially granted in Oct 2020 to analyze corruption involving lottery grants, to be prolonged to incorporate procurement via the NLC.

The SIU investigation experienced to date resulted in thirteen disciplinary referrals into the NLC, and administrative referrals to SARS and the businesses and Mental Qualities Fee to blacklist men and women implicated inside the looting. Complaints involving two persons had been referred to your Legal Follow Council and also the SA Institute of Chartered Accountants.

The SIU had noticed many trends beneath the earlier NLC board and executive - a lot of whom happen to be implicated in looting - Mothibi told MPs.

This incorporated a “craze of collusion between NLC officials and NPOs and NPCs”, “the hijacking of NPOs and NPCs” and “standard maladministration during the acceptance of grants,” he stated.

Sluggish progress via the NPA
The SIU has frozen homes, Houses, cars and trucks along with other property worthy of tens of thousands and thousands that were acquired with lottery resources, but MPs expressed worry at slow development in prosecuting those linked to the looting. (The SIU is mandated only to Get well assets purchased with stolen condition resources and doesn't have prosecuting powers).

Although the SIU has referred fifteen matters to your NPA, so far only two individuals have been introduced just before a courtroom. Two men appeared in court docket in Kimberley just lately in reference to misappropriated resources gathered for your job to beat gender-centered violence.

In August 2022 Christopher Tshivule was sentenced to 8 years in jail for his section within a R1.5-million lottery grant fraud. Prices against two folks charged with him, who the SIU has called “kingpins” from the corruption that overcome the NLC, were being dropped.

Key-Typical Mmeli Makinyane, the acting divisional commissioner for priority offences, instructed MPs that the Hawks ended up presently investigating 16 lottery corruption-similar circumstances. A further a single - the Kimberley make any difference - is prior to a courtroom and two are despatched to your NPA for a call to prosecute. An extra 5 situations are increasingly being investigated by the SAPS detective and forensic companies, he explained.

Detailing the reasons with the hold off in prosecutions, NPA Deputy National Director Rodney de Kock said Element of The explanation was which the Hawks had to do further more investigations when they received dossiers with the SIU.

“In essence, the investigations undertaken because of the SIU usually do not satisfy felony requirements for prosecutions.”

Thus, the NPA experienced to operate with investigators within the DPCI (the Hawks) and SAPS to carry out legal investigations and ensure that the proof satisfies prison prosecution standards, he mentioned, including: “That said, the function in the SIU is very important and contributes tremendously to this process.”

De Kock said which the SIU’s investigation “normally ends in numerous referrals. The referrals may perhaps in the long run lead to one docket and just one court scenario.”

He said that 12 matters, which are “around eighty five% complete”, had been getting jointly investigated because of the Hawks as well as SIU’s Specialised Financial Functions Unit. (The majority of these instances, seven of which had been lodged in 2020, include former NLC Main running officer Phillemon Letwaba, who resigned underneath a cloud in 2022, and Pretoria attorney Leslie Ramulifho.)

De Kock stated the NPA confronted several “difficulties” in prosecuting instances. These, he said, bundled

the lapse of your time in between in the event the offences were being committed and also the issuing from the Presidential Proclamation on one November 2020;
“unavailability of witnesses and/or documentary proof” (Earlier this 12 months, the SIU informed the committee that critical documents necessary in a few prosecutions were deleted from the NLC Computer system method or had absent lacking from Metrofile, a warehouse where copies of documents are archived and stored);
The truth that some implicated people today remain used by NLC; and
A problem on the legality with the Presidential Proclamation by former NLC chairperson Alfred Nevhutanda.
“The NPA is devoted to guaranteeing finalisation in these matters. To this conclusion, a crew of devoted prosecutors is allotted to supervise all NLC matters at present under investigation,” de Kock said. “Issues are handled to be a priority. When [the] investigations are completed, the NPA could make a decision.”

What the businesses say (or don’t)
GroundUp was only in the position to get comment from one of many 5 organizations accused because of the SIU in Parliament of producing fraudulent yearly financial statements,TTP Consulting.

Aubrey Moeng, one among TTP’s two directors, reported within an electronic mail in reaction to concerns: “Resulting from client confidentiality, we would like to suggest that TTP Consulting just isn't willing to disclose shoppers’ money confidential information with the general public or media … without the consent of your customer or possibly a legal rationale.”

The corporation is often a “companion” of several condition entities, including SARS as well as CIPC, As outlined by its Site.

Neither of The 2 administrators of Dzata Accountants, who will be equally mentioned as inactive around the CIPC sign-up of providers, responded to emailed questions. The company is deregistered from the CIPC for failing to submit fiscal statements since 2021.

The only real director of Mageba Ntuli Buying and selling and Consulting Service, Patrick Zulu, died 3 many years back, Based on Formal records. The business was deregistered from the CIPC for failing to post financial statements considering that 2021.

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

GroundUp was not able to come across any listing for Tafta Consulting and Accounting Companies with the CIPC. We were also unable to trace any of the company’s administrators to request comment.

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