The Unique Investigating Device has determined five accounting corporations that helped loot Lottery cash. Graphic: Lisa Nelson
The Special Investigating Unit has discovered 5 accounting and auditing firms that assisted non-gain firms loot Lottery revenue intended for “excellent results in”.
The accounting firms compiled fraudulent monetary statements used by these firms to submit an application for Lottery funding, the SIU informed Parliament.
Performing Main nationwide investigations officer Zodwa Xesibe explained the SIU would acquire motion to get these companies blacklisted.
A four-year probe with the หวย วัน นี้ Special Investigating Device (SIU) has exposed five accounting and auditing firms that assisted dodgy non-revenue companies loot many hundreds of countless rands designed for “excellent causes” with the Lottery.
These firms have been explained by the SIU as “Specialist enablers,” who “compiled fraudulent financial statements” which were utilized by the companies to apply for Lottery funding.
The five businesses had been named in Parliament by the SIU’s performing Main national investigations officer Zodwa Xesibe. They're TTP Consulting, Dzata Accountants, Magodi Consulting, Mageba Ntuli Consulting and Tafta Consulting and Accounting Solutions.
Fraudulent financials made by these 5 accounting companies helped approximately 40 firms get their hands on lottery funding, according to the SIU presentation.
Based upon a Instrument containing knowledge with all lottery grants since 2002, these companies received more than R314-million in funding.
“These NPCs were funded from the Countrywide Lotteries Commission (NLC) however the resources were not utilized for their meant objective,” Xesibe explained to Parliament’s Trade, Field and Level of competition Portfolio Committee very last 7 days.
The SIU, the Hawks along with the Countrywide Prosecuting Authority (NPA) have been in Parliament to report to the committee on development in bringing folks and organisations linked to looting the lottery to e book.
Xesibe informed GroundUp the SIU meant to lodge grievances from the accounting companies included and was checking if these firms had been registered and, If that is so, with which Expert bodies.
“We want these businesses for being blacklisted,” she informed GroundUp.
To qualify for Lottery funding, an organisation was required to produce two decades of once-a-year fiscal statements, Xesibe defined in Parliament.
Nevertheless, being an ongoing six-calendar year investigation into lottery corruption by GroundUp has revealed, hijacked non-gain organisations (NPOs) or new shelf non-profit providers (NPCs) without economical track records had been accustomed to make an application for funding.
In a few circumstances, Practically similar fiscal statements ended up developed for unrelated organisations, typically with only the names of your organisations adjusted, GroundUp’s investigation uncovered.
Paperwork submitted by real NPCs for unsuccessful grant applications were normally utilized by new or hijacked NPCs and NPOs to apply for funding. The details and files with the unsuccessful applicants ended up supplied by senior Lottery officers on the dodgy applicants.
With cursory or - generally - no verification, these dodgy applicants have been awarded a lot of rands in grants. At times supplemental tranches of funds have been paid out out without the need of Considerably checking over the progress of assignments.
The vast majority of those grants had been created by way of proactive funding, which was at the heart of the looting of your lottery. Proactive funding permitted the Minister of Trade, Sector and Competition, or maybe the NLC along with its board, to recognize causes to fund devoid of very first demanding an application. This was stopped each time a new NLC board was appointed.
R2-billion in grants less than investigation
SIU head Advocate Andy Mothibi stated the SIU was now investigating grants valued at more than R2-billion, plus the device was nonetheless often acquiring idea-offs about extra corruption.
He told MPs which the SIU’s investigation were damaged into a few phases: the first, that has been finalised, probed dodgy grants amounting to R280-million, and the second, also completed, involved R247-million. While in the third phase, due to be finalised at the conclusion of the yr, the SIU is investigating grants valued at Virtually R906-million, involving forty NPOs and NPCs, Mothibi claimed.
He stated which the SIU would apply “shortly” for your Presidential Proclamation, initially granted in October 2020 to research corruption involving lottery grants, being prolonged to include procurement through the NLC.
The SIU investigation experienced to this point led to 13 disciplinary referrals towards the NLC, and administrative referrals to SARS and the Companies and Intellectual Qualities Commission to blacklist individuals implicated inside the looting. Grievances involving two folks had been referred towards the Legal Apply Council plus the SA Institute of Chartered Accountants.
The SIU experienced noticed quite a few traits beneath the earlier NLC board and executive - lots of whom are implicated in looting - Mothibi explained to MPs.
This involved a “craze of collusion in between NLC officers and NPOs and NPCs”, “the hijacking of NPOs and NPCs” and “basic maladministration within the acceptance of grants,” he mentioned.
Slow progress via the NPA
The SIU has frozen houses, Homes, autos as well as other assets value tens of tens of millions which were purchased with lottery cash, but MPs expressed issue at gradual development in prosecuting those involved with the looting. (The SIU is mandated only to Get better belongings purchased with stolen state funds and doesn't have prosecuting powers).
Even though the SIU has referred 15 issues to your NPA, thus far only two people have been introduced right before a courtroom. Two Males appeared in court docket in Kimberley not too long ago in reference to misappropriated cash gathered to get a task to beat gender-primarily based violence.
In August 2022 Christopher Tshivule was sentenced to eight many years in prison for his component inside a R1.five-million lottery grant fraud. Prices in opposition to two men and women charged with him, who the SIU has called “kingpins” inside the corruption that confused the NLC, ended up dropped.
Key-Typical Mmeli Makinyane, the performing divisional commissioner for precedence offences, instructed MPs the Hawks have been at the moment investigating 16 lottery corruption-related cases. A further a person - the Kimberley subject - is ahead of a court and two are sent to your NPA for a decision to prosecute. An additional 5 instances are being investigated because of the SAPS detective and forensic solutions, he explained.
Explaining the reasons for that hold off in prosecutions, NPA Deputy Countrywide Director Rodney de Kock explained part of The explanation was which the Hawks needed to do even more investigations after they been given dossiers from your SIU.
“In essence, the investigations undertaken because of the SIU never fulfill felony specifications for prosecutions.”
For that reason, the NPA had to operate with investigators in the DPCI (the Hawks) and SAPS to perform legal investigations and make sure that the proof meets felony prosecution criteria, he stated, introducing: “That said, the get the job done in the SIU is important and contributes considerably to this process.”
De Kock claimed which the SIU’s investigation “typically results in many referrals. The referrals might in the long run bring about 1 docket and a single courtroom circumstance.”
He mentioned that twelve issues, which might be “around 85% comprehensive”, were being getting jointly investigated via the Hawks as well as the SIU’s Specialised Economic Operations Device. (Most of these conditions, seven of which were lodged in 2020, involve previous NLC Main working officer Phillemon Letwaba, who resigned less than a cloud in 2022, and Pretoria lawyer Leslie Ramulifho.)
De Kock claimed the NPA confronted many “challenges” in prosecuting situations. These, he reported, integrated
the lapse of time involving in the event the offences had been committed along with the issuing of the Presidential Proclamation on 1 November 2020;
“unavailability of witnesses and/or documentary evidence” (Before this year, the SIU informed the committee that crucial documents necessary in some prosecutions were deleted within the NLC Computer system technique or had long gone lacking from Metrofile, a warehouse exactly where copies of files are archived and stored);
The point that some implicated folks remain employed by NLC; and
A problem into the legality from the Presidential Proclamation by previous NLC chairperson Alfred Nevhutanda.
“The NPA is dedicated to ensuring finalisation in these matters. To this conclusion, a workforce of dedicated prosecutors is allocated to oversee all NLC matters at the moment underneath investigation,” de Kock said. “Issues are taken care of as a precedence. At the time [the] investigations are completed, the NPA will make a call.”
What the businesses say (or don’t)
GroundUp was only in the position to get comment from one of many 5 corporations accused with the SIU in Parliament of producing fraudulent yearly monetary statements,TTP Consulting.
Aubrey Moeng, one of TTP’s two directors, reported in an e mail in reaction to concerns: “As a consequence of consumer confidentiality, we prefer to advise that TTP Consulting just isn't prepared to disclose clients’ economic confidential data with the public or media … without the consent from the consumer or even a authorized motive.”
The company is really a “spouse” of numerous state entities, including SARS as well as CIPC, In keeping with its Internet site.
Neither of The 2 directors of Dzata Accountants, who will be equally outlined as inactive to the CIPC register of corporations, responded to emailed concerns. The corporate continues to be deregistered with the CIPC for failing to post financial statements given that 2021.
The only director of Mageba Ntuli Buying and selling and Consulting Assistance, Patrick Zulu, died 3 several years in the past, In line with official records. The company was deregistered by the CIPC for failing to post fiscal statements considering that 2021.
Matamela Magodi, the sole director of Magodi Consultants, didn't respond to questions emailed to him.
GroundUp was struggling to locate any listing for Tafta Consulting and Accounting Solutions with the CIPC. We have been also struggling to trace any of the organization’s administrators to request remark.