The accountants who assisted loot the Lottery

The accountants who assisted loot the Lottery

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

The Special Investigating Device has determined 5 accounting and auditing firms that aided non-income providers loot Lottery dollars meant for “superior leads to”.
The accounting firms compiled fraudulent financial statements employed by these companies to submit an application for Lottery funding, the SIU explained to Parliament.
Performing Main countrywide investigations officer Zodwa Xesibe stated the SIU would acquire action to have these companies blacklisted.
A 4-yr probe by the หวย ลาว ออก วัน นี้ สด Specific Investigating Unit (SIU) has exposed 5 accounting and auditing corporations that assisted dodgy non-earnings businesses loot countless a lot of rands designed for “great brings about” from your Lottery.

These companies were explained with the SIU as “Skilled enablers,” who “compiled fraudulent financial statements” that were employed by the companies to make an application for Lottery funding.

The 5 organizations ended up named in Parliament from the SIU’s acting chief national investigations officer Zodwa Xesibe. They are really TTP Consulting, Dzata Accountants, Magodi Consulting, Mageba Ntuli Consulting and Tafta Consulting and Accounting Providers.

Fraudulent financials produced by these five accounting firms helped practically 40 corporations get their hands on lottery funding, according to the SIU presentation.

Depending on a Resource made up of info with all lottery grants because 2002, these firms received above R314-million in funding.

“These NPCs were funded from the Countrywide Lotteries Commission (NLC) nevertheless the resources were not utilized for his or her meant objective,” Xesibe told Parliament’s Trade, Marketplace and Level of competition Portfolio Committee past week.

The SIU, the Hawks and the Nationwide Prosecuting Authority (NPA) have been in Parliament to report back to the committee on development in bringing people and organisations linked to looting the lottery to reserve.

Xesibe instructed GroundUp that the SIU meant to lodge problems from the accounting firms included and was checking if these corporations were being registered and, If that's so, with which Experienced bodies.

“We would like these organizations to be blacklisted,” she instructed GroundUp.

To qualify for Lottery funding, an organisation was required to make two years of yearly financial statements, Xesibe defined in Parliament.

However, being an ongoing 6-12 months investigation into lottery corruption by GroundUp has unveiled, hijacked non-revenue organisations (NPOs) or new shelf non-financial gain firms (NPCs) with no financial monitor records were utilized to make an application for funding.

In a few scenarios, Nearly identical fiscal statements ended up produced for unrelated organisations, generally with only the names in the organisations modified, GroundUp’s investigation identified.

Documents submitted by genuine NPCs for unsuccessful grant purposes have been frequently employed by new or hijacked NPCs and NPOs to submit an application for funding. The main points and paperwork on the unsuccessful applicants have been supplied by senior Lottery officials into the dodgy applicants.

With cursory or - normally - no verification, these dodgy applicants have been awarded an incredible number of rands in grants. Sometimes supplemental tranches of funds have been paid out out without the need of much checking over the progress of projects.

The overwhelming majority of these grants were made by using proactive funding, which was at the center of your looting with the lottery. Proactive funding permitted the Minister of Trade, Business and Competitiveness, or even the NLC together with its board, to identify results in to fund without the need of 1st requiring an software. This was stopped each time a new NLC board was appointed.

R2-billion in grants underneath investigation
SIU head Advocate Andy Mothibi said the SIU was at the moment investigating grants valued at about R2-billion, as well as the unit was still regularly receiving idea-offs about extra corruption.

He instructed MPs the SIU’s investigation had been damaged into three phases: the initial, that has been finalised, probed dodgy grants amounting to R280-million, and the next, also accomplished, involved R247-million. In the 3rd phase, due to be finalised at the end of the calendar year, the SIU is investigating grants valued at Virtually R906-million, involving 40 NPOs and NPCs, Mothibi claimed.

He explained which the SIU would use “shortly” with the Presidential Proclamation, originally granted in October 2020 to investigate corruption involving lottery grants, being prolonged to include procurement with the NLC.

The SIU investigation had to date resulted in 13 disciplinary referrals to the NLC, and administrative referrals to SARS and the Companies and Mental Attributes Fee to blacklist people implicated within the looting. Complaints involving two individuals were referred to the Lawful Exercise Council as well as SA Institute of Chartered Accountants.

The SIU experienced observed quite a few developments underneath the previous NLC board and govt - a lot of whom have been implicated in looting - Mothibi told MPs.

This involved a “trend of collusion concerning NLC officials and NPOs and NPCs”, “the hijacking of NPOs and NPCs” and “standard maladministration in the approval of grants,” he stated.

Sluggish progress via the NPA
The SIU has frozen homes, properties, cars and various belongings well worth tens of tens of millions which were purchased with lottery cash, but MPs expressed problem at slow development in prosecuting Those people involved with the looting. (The SIU is mandated only to Recuperate assets acquired with stolen condition funds and does not have prosecuting powers).

While the SIU has referred 15 issues into the NPA, to this point only two individuals have been brought before a court docket. Two men appeared in courtroom in Kimberley lately in connection with misappropriated cash gathered for your challenge to beat gender-based violence.

In August 2022 Christopher Tshivule was sentenced to 8 decades in jail for his aspect inside of a R1.5-million lottery grant fraud. Expenses towards two men and women billed with him, who the SIU has called “kingpins” from the corruption that overwhelmed the NLC, were dropped.

Important-Standard Mmeli Makinyane, the acting divisional commissioner for precedence offences, advised MPs that the Hawks were being now investigating 16 lottery corruption-similar circumstances. Another a person - the Kimberley issue - is before a courtroom and two have been sent to your NPA for a decision to prosecute. An additional five cases are now being investigated by the SAPS detective and forensic providers, he reported.

Conveying The explanations to the hold off in prosecutions, NPA Deputy Nationwide Director Rodney de Kock claimed Component of the reason was which the Hawks needed to do even further investigations if they gained dossiers through the SIU.

“In essence, the investigations carried out because of the SIU tend not to satisfy legal requirements for prosecutions.”

Hence, the NPA had to operate with investigators in the DPCI (the Hawks) and SAPS to carry out felony investigations and make certain that the proof meets prison prosecution specifications, he said, incorporating: “Having said that, the work in the SIU is essential and contributes significantly to this process.”

De Kock said that the SIU’s investigation “usually leads to several referrals. The referrals could in the end result in one docket and a person courtroom circumstance.”

He explained that twelve matters, which can be “around eighty five% complete”, ended up getting jointly investigated via the Hawks as well as the SIU’s Specialised Financial Functions Device. (The majority of these scenarios, 7 of which were being lodged in 2020, include former NLC chief working officer Phillemon Letwaba, who resigned less than a cloud in 2022, and Pretoria law firm Leslie Ramulifho.)

De Kock said the NPA confronted several “difficulties” in prosecuting instances. These, he said, bundled

the lapse of your time in between when the offences ended up dedicated along with the issuing on the Presidential Proclamation on 1 November 2020;
“unavailability of witnesses and/or documentary evidence” (Before this yr, the SIU informed the committee that vital documents essential in certain prosecutions were deleted with the NLC Personal computer procedure or experienced gone missing from Metrofile, a warehouse where by copies of documents are archived and stored);
The point that some implicated men and women remain employed by NLC; and
A challenge for the legality with the Presidential Proclamation by previous NLC chairperson Alfred Nevhutanda.
“The NPA is devoted to making certain finalisation in these matters. To this close, a workforce of focused prosecutors has long been allotted to oversee all NLC issues at this time underneath investigation,” de Kock claimed. “Matters are handled for a priority. After [the] investigations are finished, the NPA could make a decision.”

What the businesses say (or don’t)
GroundUp was only capable of get remark from among the list of five firms accused via the SIU in Parliament of producing fraudulent yearly economical statements,TTP Consulting.

Aubrey Moeng, certainly one of TTP’s two directors, stated in an e mail in reaction to issues: “Because of consumer confidentiality, we wish to recommend that TTP Consulting is not really ready to disclose shoppers’ financial private info with the general public or media … without the consent of the customer or perhaps a authorized reason.”

The corporate is really a “lover” of several state entities, such as SARS plus the CIPC, In keeping with its Web site.

Neither of the two directors of Dzata Accountants, who're both of those mentioned as inactive around the CIPC register of businesses, responded to emailed concerns. The organization has become deregistered via the CIPC for failing to post fiscal statements due to the fact 2021.

The only director of Mageba Ntuli Trading and Consulting Services, Patrick Zulu, died a few several years ago, Based on Formal records. The corporate was deregistered with the CIPC for failing to post economic statements because 2021.

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

GroundUp was not able to discover any listing for Tafta Consulting and Accounting Expert services Using the CIPC. We ended up also unable to trace any of the organization’s directors to request remark.

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