The accountants who helped loot the Lottery

The accountants who helped loot the Lottery

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The Particular Investigating Device has identified 5 accounting firms that served loot Lottery funds. Graphic: Lisa Nelson

The Special Investigating Unit has recognized five accounting and auditing firms that served non-profit organizations loot Lottery funds meant for “superior leads to”.
The accounting firms compiled fraudulent fiscal statements utilized by these providers to apply for Lottery funding, the SIU informed Parliament.
Acting chief nationwide investigations officer Zodwa Xesibe said the SIU would just take motion to acquire these corporations blacklisted.
A 4-12 months probe by the ตา ว จ หวย Unique Investigating Device (SIU) has uncovered 5 accounting and auditing firms that aided dodgy non-gain businesses loot many many rands designed for “very good will cause” in the Lottery.

These firms ended up explained by the SIU as “Qualified enablers,” who “compiled fraudulent fiscal statements” that were used by the companies to submit an application for Lottery funding.

The 5 organizations were being named in Parliament via the SIU’s performing chief countrywide investigations officer Zodwa Xesibe. They're TTP Consulting, Dzata Accountants, Magodi Consulting, Mageba Ntuli Consulting and Tafta Consulting and Accounting Expert services.

Fraudulent financials made by these 5 accounting corporations aided nearly forty companies get their arms on lottery funding, based on the SIU presentation.

Determined by a Device containing facts with all lottery grants considering the fact that 2002, these firms got in excess of R314-million in funding.

“These NPCs had been funded by the Nationwide Lotteries Fee (NLC) even so the cash were not used for his or her intended intent,” Xesibe informed Parliament’s Trade, Field and Competition Portfolio Committee past week.

The SIU, the Hawks along with the Countrywide Prosecuting Authority (NPA) were in Parliament to report to the committee on development in bringing individuals and organisations involved with looting the lottery to guide.

Xesibe advised GroundUp which the SIU intended to lodge grievances from the accounting corporations concerned and was checking if these firms ended up registered and, If that's so, with which professional bodies.

“We wish these companies to become blacklisted,” she told GroundUp.

To qualify for Lottery funding, an organisation was necessary to create two many years of yearly economic statements, Xesibe explained in Parliament.

Having said that, as an ongoing 6-yr investigation into lottery corruption by GroundUp has exposed, hijacked non-gain organisations (NPOs) or new shelf non-revenue providers (NPCs) without any fiscal keep track of records have been used to make an application for funding.

In certain instances, Pretty much equivalent money statements were generated for unrelated organisations, typically with just the names with the organisations improved, GroundUp’s investigation observed.

Files submitted by authentic NPCs for unsuccessful grant applications had been usually used by new or hijacked NPCs and NPOs to apply for funding. The main points and paperwork from the unsuccessful applicants have been equipped by senior Lottery officers for the dodgy applicants.

With cursory or - normally - no verification, these dodgy applicants have been awarded a lot of rands in grants. Occasionally further tranches of funds ended up paid out out with no Substantially examining around the development of initiatives.

The overwhelming majority of these grants were manufactured by way of proactive funding, which was at the heart of the looting on the lottery. Proactive funding authorized the Minister of Trade, Sector and Competitors, or the NLC at the side of its board, to discover leads to to fund without the need of 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 explained the SIU was presently investigating grants valued at about R2-billion, and the unit was even now consistently acquiring idea-offs about extra corruption.

He told MPs that the SIU’s investigation were damaged into 3 phases: the primary, which has been finalised, probed dodgy grants amounting to R280-million, and the 2nd, also completed, included R247-million. While in the third section, as a result of be finalised at the end of the 12 months, the SIU is investigating grants valued at Virtually R906-million, involving forty NPOs and NPCs, Mothibi reported.

He stated the SIU would implement “soon” for the Presidential Proclamation, at first granted in Oct 2020 to investigate corruption involving lottery grants, to be extended to include procurement with the NLC.

The SIU investigation experienced so far led to thirteen disciplinary referrals to the NLC, and administrative referrals to SARS and the businesses and Mental Attributes Fee to blacklist persons implicated within the looting. Issues involving two men and women had been referred towards the Lawful Exercise Council as well as SA Institute of Chartered Accountants.

The SIU had noticed numerous developments underneath the previous NLC board and government - lots of whom are already implicated in looting - Mothibi told MPs.

This bundled a “pattern of collusion involving NLC officers and NPOs and NPCs”, “the hijacking of NPOs and NPCs” and “general maladministration while in the acceptance of grants,” he reported.

Gradual development via the NPA
The SIU has frozen homes, properties, vehicles together with other property truly worth tens of tens of millions which were purchased with lottery money, but MPs expressed worry at slow progress in prosecuting Individuals involved in the looting. (The SIU is mandated only to Get well assets purchased with stolen point out cash and does not have prosecuting powers).

While the SIU has referred 15 issues on the NPA, so far only two individuals have been introduced just before a courtroom. Two Guys appeared in court docket in Kimberley just lately in reference to misappropriated resources gathered to get a job to fight gender-dependent violence.

In August 2022 Christopher Tshivule was sentenced to eight decades in jail for his section inside a R1.5-million lottery grant fraud. Charges versus two people billed with him, who the SIU has referred to as “kingpins” while in the corruption that overwhelmed the NLC, were dropped.

Important-Normal Mmeli Makinyane, the acting divisional commissioner for precedence offences, instructed MPs that the Hawks were being at the moment investigating sixteen lottery corruption-relevant instances. A different one particular - the Kimberley make a difference - is before a court and two are already sent on the NPA for a choice to prosecute. An additional five scenarios are now being investigated because of the SAPS detective and forensic services, he mentioned.

Outlining the reasons for the hold off in prosecutions, NPA Deputy Nationwide Director Rodney de Kock explained Section of The explanation was that the Hawks needed to do even further investigations every time they gained dossiers through the SIU.

“In essence, the investigations undertaken via the SIU tend not to fulfill criminal standards for prosecutions.”

As a result, the NPA experienced to operate with investigators inside the DPCI (the Hawks) and SAPS to carry out felony investigations and make sure that the evidence fulfills legal prosecution criteria, he reported, adding: “Having said that, the get the job done with the SIU is crucial and contributes greatly to this method.”

De Kock explained the SIU’s investigation “normally ends in numerous referrals. The referrals may in the long run cause a single docket and 1 courtroom circumstance.”

He stated that twelve issues, which happen to be “somewhere around 85% finish”, had been remaining jointly investigated through the Hawks and the SIU’s Specialised Economic Operations Unit. (These types of cases, seven of which had been lodged in 2020, entail previous NLC chief operating officer Phillemon Letwaba, who resigned beneath a cloud in 2022, and Pretoria attorney Leslie Ramulifho.)

De Kock reported the NPA faced various “troubles” in prosecuting scenarios. These, he claimed, provided

the lapse of your time involving if the offences were fully commited and the issuing of your Presidential Proclamation on 1 November 2020;
“unavailability of witnesses and/or documentary proof” (Earlier this yr, the SIU told the committee that critical files necessary in a few prosecutions were deleted from the NLC Laptop procedure or had absent missing from Metrofile, a warehouse where by copies of documents are archived and stored);
The truth that some implicated persons remain utilized by NLC; and
A obstacle into the legality of your Presidential Proclamation by previous NLC chairperson Alfred Nevhutanda.
“The NPA is dedicated to making sure finalisation in these issues. To this conclusion, a crew of dedicated prosecutors has been allotted to oversee all NLC issues presently underneath investigation,” de Kock stated. “Matters are taken care of as being a priority. Once [the] investigations are accomplished, the NPA could make a call.”

What the companies say (or don’t)
GroundUp was only capable of get comment from on the list of 5 companies accused through the SIU in Parliament of producing fraudulent annual economic statements,TTP Consulting.

Aubrey Moeng, one among TTP’s two directors, stated in an electronic mail in reaction to queries: “As a result of consumer confidentiality, we want to recommend that TTP Consulting is just not ready to disclose consumers’ economic private data with the public or media … with no consent of the customer or perhaps a authorized rationale.”

The business is usually a “spouse” of various point out entities, which includes SARS along with the CIPC, according to its Web site.

Neither of the two administrators of Dzata Accountants, who will be both outlined as inactive about the CIPC sign-up of organizations, responded to emailed queries. The business is deregistered from the CIPC for failing to post money statements considering that 2021.

The sole director of Mageba Ntuli Investing and Consulting Provider, Patrick Zulu, died three decades in the past, according to Formal records. The corporate was deregistered by the CIPC for failing to submit economical statements considering that 2021.

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

GroundUp was unable to locate any listing for Tafta Consulting and Accounting Products and services With all the CIPC. We ended up also not able to trace any of the corporate’s administrators to ask for comment.

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