The accountants who aided loot the Lottery
The accountants who aided loot the Lottery
Blog Article
The Specific Investigating Device has determined 5 accounting companies that helped loot Lottery money. Graphic: Lisa Nelson
The Special Investigating Unit has discovered five accounting and auditing companies that aided non-revenue providers loot Lottery cash meant for “fantastic leads to”.
The accounting companies compiled fraudulent fiscal statements utilized by these providers to submit an application for Lottery funding, the SIU explained to Parliament.
Performing Main nationwide investigations officer Zodwa Xesibe mentioned the SIU would just take action to have these corporations blacklisted.
A four-year probe via the ltpbet Particular Investigating Unit (SIU) has exposed five accounting and auditing corporations that served dodgy non-gain companies loot a huge selection of countless rands designed for “superior will cause” with the Lottery.
These firms were explained from the SIU as “Experienced enablers,” who “compiled fraudulent fiscal statements” which were utilized by the businesses to apply for Lottery funding.
The five providers had been named in Parliament via the SIU’s acting chief nationwide investigations officer Zodwa Xesibe. These are TTP Consulting, Dzata Accountants, Magodi Consulting, Mageba Ntuli Consulting and Tafta Consulting and Accounting Solutions.
Fraudulent financials produced by these five accounting firms helped practically 40 firms get their fingers on lottery funding, based on the SIU presentation.
Based upon a Instrument made up of information with all lottery grants given that 2002, these organizations received more than R314-million in funding.
“These NPCs were being funded because of the National Lotteries Commission (NLC) though the resources were not utilised for their intended reason,” Xesibe advised Parliament’s Trade, Sector and Competition Portfolio Committee very last week.
The SIU, the Hawks along with 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 told GroundUp that the SIU meant to lodge problems versus the accounting corporations associated and was examining if these firms ended up registered and, In that case, with which Expert bodies.
“We want these businesses to become blacklisted,” she told GroundUp.
To qualify for Lottery funding, an organisation was needed to make two years of once-a-year economical statements, Xesibe stated in Parliament.
Nonetheless, as an ongoing 6-12 months investigation into lottery corruption by GroundUp has discovered, hijacked non-gain organisations (NPOs) or new shelf non-profit companies (NPCs) without having money track documents have been utilized to submit an application for funding.
In some instances, Practically equivalent financial statements had been developed for unrelated organisations, often with only the names in the organisations altered, GroundUp’s investigation uncovered.
Files submitted by authentic NPCs for unsuccessful grant apps were being usually employed by new or hijacked NPCs and NPOs to make an application for funding. The details and documents of your unsuccessful applicants were being provided by senior Lottery officials for the dodgy applicants.
With cursory or - usually - no verification, these dodgy applicants had been awarded millions of rands in grants. At times supplemental tranches of money ended up compensated out with out much examining within the progress of assignments.
The overwhelming majority of those grants have been manufactured by means of proactive funding, which was at the center from the looting of the lottery. Proactive funding permitted the Minister of Trade, Market and Levels of competition, or even the NLC together with its board, to detect brings about to fund without initially requiring an application. This was stopped every time a new NLC board was appointed.
R2-billion in grants under investigation
SIU head Advocate Andy Mothibi claimed the SIU was currently investigating grants valued at above R2-billion, as well as device was continue to frequently receiving tip-offs about more corruption.
He told MPs which the SIU’s investigation were damaged into three phases: the very first, that has been finalised, probed dodgy grants amounting to R280-million, and the 2nd, also concluded, concerned R247-million. While in the third section, resulting from be finalised at the end of the calendar year, the SIU is investigating grants valued at Practically R906-million, involving forty NPOs and NPCs, Mothibi reported.
He reported which the SIU would apply “before long” to the Presidential Proclamation, at first granted in October 2020 to analyze corruption involving lottery grants, being prolonged to include procurement with the NLC.
The SIU investigation experienced thus far triggered thirteen disciplinary referrals to the NLC, and administrative referrals to SARS and the Companies and Mental Properties Fee to blacklist people implicated within the looting. Complaints involving two people were referred to your Authorized Apply Council and also the SA Institute of Chartered Accountants.
The SIU experienced observed a number of traits beneath the previous NLC board and government - many of whom are actually implicated in looting - Mothibi advised MPs.
This included a “craze of collusion between NLC officials and NPOs and NPCs”, “the hijacking of NPOs and NPCs” and “normal maladministration within the approval of grants,” he claimed.
Gradual development through the NPA
The SIU has frozen properties, Attributes, cars and also other property worthy of tens of tens of millions which were purchased with lottery money, but MPs expressed concern at slow development in prosecuting All those involved with the looting. (The SIU is mandated only to Recuperate assets acquired with stolen condition resources and doesn't have prosecuting powers).
Although the SIU has referred fifteen matters to the NPA, to this point only two individuals have been introduced just before a court docket. Two Gentlemen appeared in court docket in Kimberley not long ago in reference to misappropriated money gathered for a task to beat gender-primarily based violence.
In August 2022 Christopher Tshivule was sentenced to eight yrs in jail for his part within a R1.5-million lottery grant fraud. Fees versus two people billed with him, who the SIU has called “kingpins” during the corruption that confused the NLC, were being dropped.
Important-Normal Mmeli Makinyane, the performing divisional commissioner for priority offences, told MPs which the Hawks have been at present investigating sixteen lottery corruption-linked situations. An additional one - the Kimberley subject - is just before a court docket and two have already been despatched towards the NPA for a choice to prosecute. An extra five situations are increasingly being investigated from the SAPS detective and forensic expert services, he reported.
Describing the reasons to the delay in prosecutions, NPA Deputy Nationwide Director Rodney de Kock explained Component of The key reason why was which the Hawks needed to do even more investigations if they acquired dossiers through the SIU.
“In essence, the investigations undertaken by the SIU do not fulfill criminal standards for prosecutions.”
Thus, the NPA had to operate with investigators inside the DPCI (the Hawks) and SAPS to perform criminal investigations and make sure the evidence fulfills prison prosecution specifications, he reported, adding: “That said, the get the job done of the SIU is vital and contributes enormously to this method.”
De Kock said that the SIU’s investigation “frequently leads to several referrals. The referrals may possibly in the long run end in just one docket and just one courtroom case.”
He said that twelve matters, that are “approximately eighty five% full”, were remaining jointly investigated with the Hawks and also the SIU’s Specialised Financial Operations Unit. (A large number of situations, 7 of which were lodged in 2020, entail previous NLC chief working officer Phillemon Letwaba, who resigned beneath a cloud in 2022, and Pretoria lawyer Leslie Ramulifho.)
De Kock claimed the NPA faced numerous “troubles” in prosecuting instances. These, he explained, involved
the lapse of your time concerning in the event the offences were being fully commited and the issuing of your Presidential Proclamation on 1 November 2020;
“unavailability of witnesses and/or documentary proof” (Before this year, the SIU informed the committee that crucial paperwork essential in some prosecutions were deleted with the NLC Laptop or computer technique or experienced absent lacking from Metrofile, a warehouse where by copies of paperwork are archived and stored);
The reality that some implicated folks remain employed by NLC; and
A problem to the legality on the Presidential Proclamation by previous NLC chairperson Alfred Nevhutanda.
“The NPA is committed to making certain finalisation in these issues. To this end, a group of devoted prosecutors has actually been allotted to supervise all NLC issues at this time less than investigation,” de Kock reported. “Issues are managed for a priority. When [the] investigations are finished, the NPA will make a call.”
What the companies say (or don’t)
GroundUp was only capable to get comment from among the 5 organizations accused from the SIU in Parliament of manufacturing fraudulent annual economical statements,TTP Consulting.
Aubrey Moeng, one among TTP’s two administrators, explained within an e-mail in reaction to queries: “Because of customer confidentiality, we wish to advise that TTP Consulting is just not prepared to disclose clientele’ fiscal confidential facts with the general public or media … with no consent of the client or even a authorized cause.”
The business can be a “lover” of quite a few point out entities, which includes SARS as well as CIPC, according to its Web page.
Neither of the two administrators of Dzata Accountants, that are each mentioned as inactive to the CIPC register of companies, responded to emailed issues. The corporation has actually been deregistered with the CIPC for failing to post fiscal statements because 2021.
The sole director of Mageba Ntuli Buying and selling and Consulting Company, Patrick Zulu, died a few many years ago, As outlined by Formal information. The business was deregistered because of the CIPC for failing to post fiscal statements due to the fact 2021.
Matamela Magodi, the only director of Magodi Consultants, did not reply to issues emailed to him.
GroundUp was unable to find any listing for Tafta Consulting and Accounting Solutions with the CIPC. We ended up also unable to trace any of the corporate’s administrators to request comment.