The accountants who aided loot the Lottery

The accountants who aided loot the Lottery

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

The Unique Investigating Unit has identified 5 accounting and auditing firms that served non-income companies loot Lottery cash supposed for “very good brings about”.
The accounting firms compiled fraudulent financial statements utilized by these companies to apply for Lottery funding, the SIU informed Parliament.
Acting chief nationwide investigations officer Zodwa Xesibe reported the SIU would take action to possess these companies blacklisted.
A 4-calendar year probe from the ผล หวย Particular Investigating Device (SIU) has exposed five accounting and auditing firms that assisted dodgy non-financial gain providers loot countless millions of rands designed for “superior leads to” from your Lottery.

These firms have been explained because of the SIU as “professional enablers,” who “compiled fraudulent financial statements” which were employed by the companies to submit an application for Lottery funding.

The five firms were named in Parliament because of the SIU’s performing Main nationwide investigations officer Zodwa Xesibe. They can be TTP Consulting, Dzata Accountants, Magodi Consulting, Mageba Ntuli Consulting and Tafta Consulting and Accounting Providers.

Fraudulent financials produced by these 5 accounting corporations served almost 40 firms get their arms on lottery funding, according to the SIU presentation.

According to a tool made up of data with all lottery grants given that 2002, these companies obtained above R314-million in funding.

“These NPCs have been funded by the Countrywide Lotteries Fee (NLC) although the funds were not utilised for his or her intended reason,” Xesibe explained to Parliament’s Trade, Market and Opposition Portfolio Committee past 7 days.

The SIU, the Hawks as well as the Nationwide Prosecuting Authority (NPA) have been in Parliament to report back to the committee on development in bringing persons and organisations involved with looting the lottery to e book.

Xesibe explained to GroundUp the SIU intended to lodge complaints versus the accounting corporations included and was checking if these companies were registered and, If that's the case, with which Skilled bodies.

“We want these corporations to generally be blacklisted,” she informed GroundUp.

To qualify for Lottery funding, an organisation was needed to create two a long time of yearly monetary statements, Xesibe discussed in Parliament.

Nevertheless, as an ongoing six-yr investigation into lottery corruption by GroundUp has revealed, hijacked non-income organisations (NPOs) or new shelf non-revenue companies (NPCs) without financial monitor data ended up utilized to make an application for funding.

In a few scenarios, almost equivalent money statements ended up developed for unrelated organisations, usually with just the names with the organisations transformed, GroundUp’s investigation observed.

Paperwork submitted by real NPCs for unsuccessful grant applications had been frequently used by new or hijacked NPCs and NPOs to submit an application for funding. The main points and documents of the unsuccessful applicants have been provided by senior Lottery officers on the dodgy applicants.

With cursory or - often - no verification, these dodgy applicants had been awarded countless rands in grants. From time to time additional tranches of cash were being compensated out with no A lot examining on the development of jobs.

The overwhelming majority of these grants were being built by means of proactive funding, which was at the center of your looting of your lottery. Proactive funding permitted the Minister of Trade, Market and Levels of competition, or even the NLC at the side of its board, to establish brings about to fund without initially requiring an software. This was stopped any time a new NLC board was appointed.

R2-billion in grants under investigation
SIU head Advocate Andy Mothibi mentioned the SIU was now investigating grants valued at more than R2-billion, as well as the unit was still frequently receiving idea-offs about additional corruption.

He informed MPs which the SIU’s investigation were broken into a few phases: the 1st, which has been finalised, probed dodgy grants amounting to R280-million, and the 2nd, also concluded, concerned R247-million. Within the 3rd phase, due to be finalised at the conclusion of the year, the SIU is investigating grants valued at Nearly R906-million, involving forty NPOs and NPCs, Mothibi stated.

He explained which the SIU would apply “soon” for your Presidential Proclamation, initially granted in October 2020 to investigate corruption involving lottery grants, to become prolonged to incorporate procurement because of the NLC.

The SIU investigation had to date resulted in thirteen disciplinary referrals to your NLC, and administrative referrals to SARS and the businesses and Intellectual Properties Fee to blacklist people today implicated during the looting. Issues involving two individuals were referred to the Authorized Practice Council plus the SA Institute of Chartered Accountants.

The SIU had observed quite a few developments underneath the prior NLC board and government - many of whom are actually implicated in looting - Mothibi informed MPs.

This incorporated a “pattern of collusion amongst NLC officers and NPOs and NPCs”, “the hijacking of NPOs and NPCs” and “standard maladministration from the approval of grants,” he explained.

Sluggish progress from the NPA
The SIU has frozen houses, Homes, automobiles and also other property really worth tens of hundreds of thousands which were bought with lottery resources, but MPs expressed worry at slow progress in prosecuting those linked to the looting. (The SIU is mandated only to Recuperate property acquired with stolen state cash and doesn't have prosecuting powers).

Although the SIU has referred fifteen issues to the NPA, up to now only two individuals have been introduced right before a courtroom. Two men appeared in court in Kimberley just lately in reference to misappropriated cash collected for your project to overcome gender-dependent violence.

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

Big-Basic Mmeli Makinyane, the performing divisional commissioner for priority offences, explained to MPs that the Hawks were at this time investigating sixteen lottery corruption-connected conditions. Yet another a person - the Kimberley make a difference - is right before a court docket and two have already been sent to your NPA for a call to prosecute. An additional five circumstances are being investigated through the SAPS detective and forensic companies, he explained.

Outlining the reasons for your hold off in prosecutions, NPA Deputy Nationwide Director Rodney de Kock stated A part of The explanation was that the Hawks needed to do more investigations once they received dossiers with the SIU.

“In essence, the investigations undertaken with the SIU do not satisfy felony specifications for prosecutions.”

Hence, the NPA had to work with investigators while in the DPCI (the Hawks) and SAPS to conduct criminal investigations and be sure that the proof fulfills felony prosecution benchmarks, he reported, incorporating: “That said, the operate with the SIU is crucial and contributes considerably to this method.”

De Kock mentioned that the SIU’s investigation “frequently results in many referrals. The referrals may possibly in the end result in just one docket and one particular court docket circumstance.”

He mentioned that twelve issues, which might be “roughly 85% finish”, have been remaining jointly investigated through the Hawks and the SIU’s Specialised Economic Operations Unit. (The majority of these scenarios, 7 of which ended up lodged in 2020, involve previous NLC Main running officer Phillemon Letwaba, who resigned less than a cloud in 2022, and Pretoria law firm Leslie Ramulifho.)

De Kock reported the NPA confronted various “worries” in prosecuting conditions. These, he explained, provided

the lapse of your time amongst when the offences ended up dedicated and the issuing with the Presidential Proclamation on 1 November 2020;
“unavailability of witnesses and/or documentary proof” (Before this yr, the SIU instructed the committee that key documents necessary in a few prosecutions were deleted from the NLC Laptop procedure or had gone lacking from Metrofile, a warehouse exactly where copies of paperwork are archived and stored);
The truth that some implicated men and women remain utilized by NLC; and
A obstacle to your legality with the Presidential Proclamation by former NLC chairperson Alfred Nevhutanda.
“The NPA is committed to ensuring finalisation in these issues. To this stop, a group of focused prosecutors has long been allocated to supervise all NLC matters currently underneath investigation,” de Kock stated. “Matters are taken care of as being a priority. The moment [the] investigations are completed, the NPA is likely to make a choice.”

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

Aubrey Moeng, one among TTP’s two directors, stated within an electronic mail in reaction to inquiries: “Due to client confidentiality, we want to advise that TTP Consulting isn't willing to disclose consumers’ economic confidential information with the general public or media … without the consent of your consumer or perhaps a lawful reason.”

The corporate is really a “associate” of several state entities, including SARS plus the CIPC, In accordance with its website.

Neither of the two directors of Dzata Accountants, who are the two shown as inactive to the CIPC sign-up of firms, responded to emailed inquiries. The corporate continues to be deregistered by the CIPC for failing to post economical statements since 2021.

The only director of Mageba Ntuli Trading and Consulting Company, Patrick Zulu, died 3 many years ago, according to official data. The company was deregistered because of the CIPC for failing to submit monetary statements considering that 2021.

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

GroundUp was not able to come across any listing for Tafta Consulting and Accounting Solutions Together with the CIPC. We ended up also struggling to trace any of the corporation’s administrators to request remark.

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