The accountants who helped loot the Lottery

The accountants who helped loot the Lottery

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

The Distinctive Investigating Device has identified five accounting and auditing corporations that assisted non-profit companies loot Lottery revenue supposed for “excellent causes”.
The accounting firms compiled fraudulent economical statements utilized by these businesses to submit an application for Lottery funding, the SIU informed Parliament.
Acting chief countrywide investigations officer Zodwa Xesibe mentioned the SIU would take motion to acquire these corporations blacklisted.
A 4-yr probe via the หวย ลาว ออก วัน นี้ สด Special Investigating Device (SIU) has exposed 5 accounting and auditing corporations that served dodgy non-financial gain companies loot many hundreds of many rands designed for “great causes” in the Lottery.

These corporations have been explained with the SIU as “Specialist enablers,” who “compiled fraudulent economical statements” which were utilized by the businesses to make an application for Lottery funding.

The five companies had been named in Parliament by the SIU’s acting Main national investigations officer Zodwa Xesibe. They're TTP Consulting, Dzata Accountants, Magodi Consulting, Mageba Ntuli Consulting and Tafta Consulting and Accounting Services.

Fraudulent financials produced by these 5 accounting firms served practically forty businesses get their palms on lottery funding, based on the SIU presentation.

According to a Resource that contains information with all lottery grants because 2002, these corporations obtained about R314-million in funding.

“These NPCs have been funded by the Countrywide Lotteries Commission (NLC) although the resources were not made use of for his or her intended function,” Xesibe told Parliament’s Trade, Field and Competitiveness Portfolio Committee previous 7 days.

The SIU, the Hawks and the National Prosecuting Authority (NPA) were in Parliament to report back to the committee on development in bringing folks and organisations linked to looting the lottery to reserve.

Xesibe advised GroundUp which the SIU meant to lodge problems in opposition to the accounting corporations involved and was examining if these corporations were being registered and, In that case, with which professional bodies.

“We want these corporations for being blacklisted,” she instructed GroundUp.

To qualify for Lottery funding, an organisation was required to generate two several years of yearly fiscal statements, Xesibe stated in Parliament.

Nonetheless, being an ongoing 6-yr investigation into lottery corruption by GroundUp has exposed, hijacked non-financial gain organisations (NPOs) or new shelf non-earnings companies (NPCs) without economic keep track of records were being accustomed to submit an application for funding.

In some cases, almost similar fiscal statements ended up developed for unrelated organisations, typically with only the names from the organisations altered, GroundUp’s investigation identified.

Paperwork submitted by genuine NPCs for unsuccessful grant applications have been usually used by new or hijacked NPCs and NPOs to submit an application for funding. The small print and files in the unsuccessful applicants ended up equipped by senior Lottery officials to your dodgy applicants.

With cursory or - often - no verification, these dodgy applicants ended up awarded numerous rands in grants. In some cases additional tranches of resources were compensated out without the need of A great deal checking about the progress of jobs.

The vast majority of such grants have been manufactured by way of proactive funding, which was at the center from the looting of the lottery. Proactive funding authorized the Minister of Trade, Marketplace and Opposition, or even the NLC together with its board, to identify brings about to fund with out initially demanding an software. This was stopped when a new NLC board was appointed.

R2-billion in grants beneath investigation
SIU head Advocate Andy Mothibi said the SIU was at the moment investigating grants valued at around R2-billion, as well as the unit was still often getting suggestion-offs about additional corruption.

He advised MPs the SIU’s investigation had been damaged into 3 phases: the 1st, which has been finalised, probed dodgy grants amounting to R280-million, and the 2nd, also concluded, involved R247-million. In the third section, as a consequence of be finalised at the conclusion of the calendar year, the SIU is investigating grants valued at Practically R906-million, involving forty NPOs and NPCs, Mothibi claimed.

He stated that the SIU would implement “before long” for your Presidential Proclamation, initially granted in Oct 2020 to investigate corruption involving lottery grants, to generally be prolonged to incorporate procurement from the NLC.

The SIU investigation had thus far triggered thirteen disciplinary referrals to the NLC, and administrative referrals to SARS and the Companies and Mental Houses Fee to blacklist people implicated from the looting. Problems involving two persons were referred to your Lawful Follow Council as well as SA Institute of Chartered Accountants.

The SIU had observed several traits under the previous NLC board and executive - lots of whom are already implicated in looting - Mothibi informed MPs.

This involved a “trend of collusion amongst NLC officers and NPOs and NPCs”, “the hijacking of NPOs and NPCs” and “typical maladministration inside the acceptance of grants,” he claimed.

Gradual development because of the NPA
The SIU has frozen households, Attributes, autos as well as other belongings worthy of tens of thousands and thousands that were acquired with lottery money, but MPs expressed issue at sluggish development in prosecuting All those involved in the looting. (The SIU is mandated only to Get well assets bought with stolen condition cash and doesn't have prosecuting powers).

Whilst the SIU has referred 15 matters to your NPA, so far only two people have been brought right before a court. Two Guys appeared in courtroom in Kimberley a short while ago in reference to misappropriated resources gathered for just a challenge to beat gender-primarily based violence.

In August 2022 Christopher Tshivule was sentenced to 8 yrs in jail for his portion inside of a R1.five-million lottery grant fraud. Fees in opposition to two folks billed with him, who the SIU has called “kingpins” while in the corruption that overwhelmed the NLC, had been dropped.

Major-Normal Mmeli Makinyane, the acting divisional commissioner for precedence offences, advised MPs the Hawks were currently investigating sixteen lottery corruption-related scenarios. A different 1 - the Kimberley matter - is right before a court and two are actually sent on the NPA for a call to prosecute. A further five scenarios are being investigated with the SAPS detective and forensic solutions, he reported.

Detailing The explanations for the delay in prosecutions, NPA Deputy Countrywide Director Rodney de Kock explained Element of the reason was that the Hawks needed to do even more investigations when they received dossiers within the SIU.

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

For that reason, the NPA experienced to work with investigators in the DPCI (the Hawks) and SAPS to carry out prison investigations and make sure the evidence fulfills felony prosecution specifications, he reported, adding: “That said, the get the job done from the SIU is crucial and contributes significantly to this method.”

De Kock mentioned that the SIU’s investigation “typically leads to a number of referrals. The referrals may possibly eventually cause one particular docket and one particular court docket circumstance.”

He reported that twelve issues, that are “roughly eighty five% total”, were being currently being jointly investigated because of the Hawks along with the SIU’s Specialised Financial Functions Device. (Most of these conditions, seven of which have been lodged in 2020, include former NLC chief operating officer Phillemon Letwaba, who resigned below a cloud in 2022, and Pretoria law firm Leslie Ramulifho.)

De Kock said the NPA faced many “challenges” in prosecuting situations. These, he mentioned, provided

the lapse of time in between in the event the offences were dedicated plus the issuing with the Presidential Proclamation on 1 November 2020;
“unavailability of witnesses and/or documentary proof” (Previously this year, the SIU instructed the committee that crucial files necessary in a few prosecutions were deleted with the NLC Personal computer system or had absent missing from Metrofile, a warehouse wherever copies of documents are archived and saved);
The truth that some implicated persons remain utilized by NLC; and
A challenge towards the legality from the Presidential Proclamation by previous NLC chairperson Alfred Nevhutanda.
“The NPA is devoted to making certain finalisation in these matters. To this end, a workforce of committed prosecutors has actually been allocated to supervise all NLC matters at the moment underneath investigation,” de Kock explained. “Matters are taken care of to be a priority. At the time [the] investigations are accomplished, the NPA could make a decision.”

What the companies say (or don’t)
GroundUp was only in a position to get comment from one of many 5 organizations accused via the SIU in Parliament of producing fraudulent annual economic statements,TTP Consulting.

Aubrey Moeng, one among TTP’s two directors, explained in an email in reaction to thoughts: “Because of shopper confidentiality, we wish to advise that TTP Consulting is not really ready to disclose purchasers’ economic private facts with the public or media … without the consent of your consumer or a authorized rationale.”

The business is usually a “spouse” of various point out entities, such as SARS along with the CIPC, In keeping with its Web site.

Neither of the two administrators of Dzata Accountants, who are each outlined as inactive within the CIPC register of businesses, responded to emailed concerns. The company is deregistered from the CIPC for failing to post economic statements given that 2021.

The only real director of Mageba Ntuli Buying and selling and Consulting Services, Patrick Zulu, died 3 many years in the past, Based on Formal documents. The business was deregistered via the CIPC for failing to submit economic statements considering the fact that 2021.

Matamela Magodi, the sole director of Magodi Consultants, did not respond to concerns emailed to him.

GroundUp was unable to locate any listing for Tafta Consulting and Accounting Expert services While using the CIPC. We were also struggling to trace any of the corporation’s administrators to ask for comment.

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