The accountants who assisted loot the Lottery
The accountants who assisted loot the Lottery
Blog Article
The Special Investigating Unit has identified 5 accounting firms that helped loot Lottery cash. Graphic: Lisa Nelson
The Exclusive Investigating Unit has identified 5 accounting and auditing firms that helped non-revenue companies loot Lottery dollars intended for “excellent causes”.
The accounting corporations compiled fraudulent financial statements used by these organizations to make an application for Lottery funding, the SIU explained to Parliament.
Performing Main national investigations officer Zodwa Xesibe explained the SIU would choose motion to have these companies blacklisted.
A four-calendar year probe by the หุ้น ชอง 9 Particular Investigating Unit (SIU) has exposed 5 accounting and auditing firms that assisted dodgy non-earnings corporations loot many a lot of rands intended for “great results in” with the Lottery.
These companies had been explained through the SIU as “Expert enablers,” who “compiled fraudulent economical statements” that were employed by the companies to submit an application for Lottery funding.
The five businesses ended up named in Parliament through the SIU’s acting Main countrywide investigations officer Zodwa Xesibe. They may be TTP Consulting, Dzata Accountants, Magodi Consulting, Mageba Ntuli Consulting and Tafta Consulting and Accounting Solutions.
Fraudulent financials produced by these five accounting corporations helped almost 40 organizations get their fingers on lottery funding, in accordance with the SIU presentation.
Based upon a tool that contains knowledge with all lottery grants considering the fact that 2002, these companies got over R314-million in funding.
“These NPCs were being funded via the Countrywide Lotteries Fee (NLC) although the funds were not utilized for their supposed goal,” Xesibe told Parliament’s Trade, Sector and Opposition Portfolio Committee very last 7 days.
The SIU, the Hawks as well as the National Prosecuting Authority (NPA) were being in Parliament to report to the committee on progress in bringing folks and organisations associated with looting the lottery to e book.
Xesibe told GroundUp which the SIU meant to lodge grievances from the accounting corporations involved and was checking if these firms have been registered and, if so, with which Expert bodies.
“We wish these providers to be blacklisted,” she explained to GroundUp.
To qualify for Lottery funding, an organisation was necessary to deliver two many years of once-a-year financial statements, Xesibe stated in Parliament.
However, as an ongoing 6-year investigation into lottery corruption by GroundUp has revealed, hijacked non-financial gain organisations (NPOs) or new shelf non-earnings organizations (NPCs) without having fiscal keep track of documents had been accustomed to submit an application for funding.
In some cases, Virtually similar money statements were being produced for unrelated organisations, frequently with just the names with the organisations transformed, GroundUp’s investigation observed.
Paperwork submitted by genuine NPCs for unsuccessful grant purposes have been often employed by new or hijacked NPCs and NPOs to apply for funding. The main points and documents of your unsuccessful applicants ended up equipped by senior Lottery officials towards the dodgy applicants.
With cursory or - typically - no verification, these dodgy applicants were being awarded an incredible number of rands in grants. Often more tranches of resources were paid out without having Considerably examining on the development of initiatives.
The overwhelming majority of such grants were being created via proactive funding, which was at the center in the looting on the lottery. Proactive funding permitted the Minister of Trade, Sector and Opposition, or the NLC along with its board, to recognize triggers to fund with no initially necessitating an application. This was stopped when a new NLC board was appointed.
R2-billion in grants underneath investigation
SIU head Advocate Andy Mothibi mentioned the SIU was currently investigating grants valued at above R2-billion, plus the device was nevertheless frequently getting suggestion-offs about a lot more corruption.
He informed MPs the SIU’s investigation were broken into a few phases: the very first, which has been finalised, probed dodgy grants amounting to R280-million, and the next, also finished, involved R247-million. In the third period, as a result of be finalised at the end of the year, the SIU is investigating grants valued at Just about R906-million, involving forty NPOs and NPCs, Mothibi reported.
He claimed that the SIU would utilize “soon” with the Presidential Proclamation, originally granted in October 2020 to investigate corruption involving lottery grants, for being extended to include procurement with the NLC.
The SIU investigation experienced thus far brought about thirteen disciplinary referrals to your NLC, and administrative referrals to SARS and the businesses and Mental Homes Commission to blacklist individuals implicated in the looting. Problems involving two men and women were referred for the Lawful Follow Council along with the SA Institute of Chartered Accountants.
The SIU had observed a number of traits under the past NLC board and executive - a lot of whom are actually implicated in looting - Mothibi informed MPs.
This involved a “development of collusion concerning NLC officers and NPOs and NPCs”, “the hijacking of NPOs and NPCs” and “typical maladministration in the approval of grants,” he mentioned.
Sluggish progress by the NPA
The SIU has frozen properties, Homes, automobiles together with other property really worth tens of millions that were bought with lottery resources, but MPs expressed problem at gradual progress in prosecuting All those associated with 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 to the NPA, to date only two individuals have been introduced right before a court. Two Guys appeared in courtroom in Kimberley recently in reference to misappropriated money collected for the task to battle gender-dependent violence.
In August 2022 Christopher Tshivule was sentenced to 8 decades in jail for his portion in a very R1.five-million lottery grant fraud. Rates versus two people today billed with him, who the SIU has referred to as “kingpins” within the corruption that confused the NLC, have been dropped.
Significant-Normal Mmeli Makinyane, the performing divisional commissioner for priority offences, explained to MPs the Hawks were being at the moment investigating 16 lottery corruption-related scenarios. One more 1 - the Kimberley make any difference - is ahead of a court docket and two have already been despatched to the NPA for a decision to prosecute. An additional five conditions are being investigated because of the SAPS detective and forensic providers, he reported.
Conveying The explanations to the delay in prosecutions, NPA Deputy National Director Rodney de Kock mentioned Section of The explanation was that the Hawks needed to do further investigations every time they acquired dossiers from the SIU.
“In essence, the investigations undertaken by the SIU never fulfill criminal benchmarks for prosecutions.”
As a result, the NPA had to work with investigators in the DPCI (the Hawks) and SAPS to carry out legal investigations and ensure that the proof meets criminal prosecution specifications, he explained, incorporating: “That said, the operate with the SIU is crucial and contributes drastically to this process.”
De Kock said which the SIU’s investigation “often brings about various referrals. The referrals may well eventually lead to a person docket and one courtroom case.”
He reported that 12 matters, which are “somewhere around 85% entire”, had been staying jointly investigated from the Hawks and the SIU’s Specialised Economic Operations Unit. (Most of these situations, seven of which ended up lodged in 2020, involve previous NLC Main functioning officer Phillemon Letwaba, who resigned below a cloud in 2022, and Pretoria lawyer Leslie Ramulifho.)
De Kock mentioned the NPA faced numerous “worries” in prosecuting cases. These, he said, bundled
the lapse of time between if the offences were fully commited along with the issuing in the Presidential Proclamation on one November 2020;
“unavailability of witnesses and/or documentary evidence” (Previously this year, the SIU advised the committee that key paperwork desired in a few prosecutions were deleted in the NLC Computer system program or had gone missing from Metrofile, a warehouse wherever copies of files are archived and saved);
The reality that some implicated people are still employed by NLC; and
A challenge towards the legality from the Presidential Proclamation by previous NLC chairperson Alfred Nevhutanda.
“The NPA is devoted to ensuring finalisation in these matters. To this stop, a crew of dedicated prosecutors is allocated to supervise all NLC matters currently underneath investigation,” de Kock mentioned. “Issues are dealt with as being a priority. The moment [the] investigations are concluded, the NPA is likely to make a call.”
What the businesses say (or don’t)
GroundUp was only capable to get remark from one of the five corporations accused through the SIU in Parliament of manufacturing fraudulent yearly monetary statements,TTP Consulting.
Aubrey Moeng, amongst TTP’s two directors, stated in an e mail in reaction to thoughts: “Due to client confidentiality, we want to advise that TTP Consulting isn't willing to disclose shoppers’ financial private facts with the public or media … without the consent of your customer or possibly a legal purpose.”
The company is often a “companion” of several condition entities, such as SARS and the CIPC, In keeping with its Web page.
Neither of The 2 administrators of Dzata Accountants, who are both equally listed as inactive within the CIPC register of firms, responded to emailed thoughts. The business has long been deregistered via the CIPC for failing to post financial statements because 2021.
The sole director of Mageba Ntuli Investing and Consulting Provider, Patrick Zulu, died three decades in the past, Based on Formal information. The corporation was deregistered through the CIPC for failing to post economic statements because 2021.
Matamela Magodi, the only director of Magodi Consultants, didn't reply to thoughts emailed to him.
GroundUp was unable to come across any listing for Tafta Consulting and Accounting Companies with the CIPC. We had been also not able to trace any of the organization’s directors to ask for remark.
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