The accountants who helped loot the Lottery

The accountants who helped loot the Lottery

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The Exclusive Investigating Unit has discovered 5 accounting firms that assisted loot Lottery money. Graphic: Lisa Nelson

The Distinctive Investigating Unit has recognized five accounting and auditing firms that helped non-earnings corporations loot Lottery money supposed for “superior results in”.
The accounting companies compiled fraudulent financial statements employed by these firms to apply for Lottery funding, the SIU explained to Parliament.
Acting Main national investigations officer Zodwa Xesibe stated the SIU would take motion to possess these companies blacklisted.
A 4-yr probe by the หวย วัน นี้ Specific Investigating Device (SIU) has exposed 5 accounting and auditing companies that served dodgy non-financial gain organizations loot many hundreds of numerous rands designed for “excellent causes” within the Lottery.

These firms had been explained from the SIU as “Specialist enablers,” who “compiled fraudulent financial statements” that were used by the businesses to submit an application for Lottery funding.

The five providers ended up named in Parliament because of 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 produced by these five accounting companies served just about 40 corporations get their arms on lottery funding, according to the SIU presentation.

According to a Software made up of knowledge with all lottery grants due to the fact 2002, these organizations acquired over R314-million in funding.

“These NPCs were being funded by the Nationwide Lotteries Fee (NLC) however the money were not used for their supposed purpose,” Xesibe informed Parliament’s Trade, Marketplace and Levels of competition Portfolio Committee past week.

The SIU, the Hawks as well as the Nationwide Prosecuting Authority (NPA) ended up in Parliament to report back to the committee on development in bringing men and women and organisations linked to looting the lottery to e book.

Xesibe told GroundUp that the SIU meant to lodge problems against the accounting corporations associated and was checking if these firms were being registered and, If that's so, with which Expert bodies.

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

To qualify for Lottery funding, an organisation was needed to create two yrs of yearly financial statements, Xesibe defined in Parliament.

Even so, being an ongoing 6-calendar year investigation into lottery corruption by GroundUp has exposed, hijacked non-revenue organisations (NPOs) or new shelf non-earnings firms (NPCs) without having financial observe information had been used to submit an application for funding.

In a few circumstances, Nearly equivalent economical statements have been created for unrelated organisations, often with only the names on the organisations changed, GroundUp’s investigation located.

Files submitted by genuine NPCs for unsuccessful grant applications had been typically employed by new or hijacked NPCs and NPOs to apply for funding. The details and files of your unsuccessful applicants were being equipped by senior Lottery officials on the dodgy applicants.

With cursory or - often - no verification, these dodgy applicants ended up awarded numerous rands in grants. At times more tranches of money were paid out out devoid of Considerably checking to the progress of jobs.

The overwhelming majority of those grants had been built by way of proactive funding, which was at the center of your looting from the lottery. Proactive funding permitted the Minister of Trade, Marketplace and Opposition, or perhaps the NLC at the side of its board, to identify brings about to fund devoid of to start with demanding an software. This was stopped each time a new NLC board was appointed.

R2-billion in grants beneath investigation
SIU head Advocate Andy Mothibi mentioned the SIU was presently investigating grants valued at around R2-billion, as well as unit was still on a regular basis getting suggestion-offs about much more corruption.

He instructed MPs that the SIU’s investigation had been broken into 3 phases: the very first, which has been finalised, probed dodgy grants amounting to R280-million, and the next, also done, involved R247-million. While in the 3rd period, due to be finalised at the end of the 12 months, the SIU is investigating grants valued at almost R906-million, involving 40 NPOs and NPCs, Mothibi mentioned.

He claimed which the SIU would utilize “before long” with the Presidential Proclamation, at first granted in Oct 2020 to research corruption involving lottery grants, to get prolonged to include procurement from the NLC.

The SIU investigation experienced to this point triggered thirteen disciplinary referrals for the NLC, and administrative referrals to SARS and the Companies and Mental Attributes Commission to blacklist people implicated from the looting. Complaints involving two men and women were referred towards the Authorized Exercise Council and also the SA Institute of Chartered Accountants.

The SIU had observed quite a few developments underneath the prior NLC board and executive - a lot of whom are implicated in looting - Mothibi explained to MPs.

This included a “trend of collusion among NLC officials and NPOs and NPCs”, “the hijacking of NPOs and NPCs” and “basic maladministration while in the approval of grants,” he said.

Gradual progress because of the NPA
The SIU has frozen properties, Homes, vehicles along with other belongings value tens of hundreds of thousands which were bought with lottery money, but MPs expressed issue at slow progress in prosecuting those associated with the looting. (The SIU is mandated only to Get better assets purchased with stolen condition cash and doesn't have prosecuting powers).

Though the SIU has referred 15 matters for the NPA, thus far only two folks have been introduced before a court. Two Males appeared in court in Kimberley not too long ago in connection with misappropriated funds collected for a project to beat gender-centered violence.

In August 2022 Christopher Tshivule was sentenced to 8 several years in prison for his part inside of a R1.five-million lottery grant fraud. Expenses against two people today charged with him, who the SIU has called “kingpins” within the corruption that overcome the NLC, were dropped.

Key-General Mmeli Makinyane, the acting divisional commissioner for precedence offences, told MPs the Hawks ended up currently investigating 16 lottery corruption-relevant cases. Yet another a person - the Kimberley matter - is just before a court and two are already sent for the NPA for a decision to prosecute. A further 5 scenarios are increasingly being investigated because of the SAPS detective and forensic expert services, he explained.

Detailing The explanations for that delay in prosecutions, NPA Deputy Countrywide Director Rodney de Kock claimed Portion of The main reason was which the Hawks had to do further more investigations if they acquired dossiers in the SIU.

“In essence, the investigations carried out with the SIU usually do not satisfy felony specifications for prosecutions.”

For that reason, the NPA had to operate with investigators inside the DPCI (the Hawks) and SAPS to carry out legal investigations and ensure that the proof satisfies prison prosecution requirements, he mentioned, incorporating: “That said, the operate of your SIU is essential and contributes tremendously to this process.”

De Kock explained which the SIU’s investigation “normally results in a number of referrals. The referrals could in the end bring about a person docket and a single court docket scenario.”

He mentioned that twelve issues, that are “around 85% complete”, ended up being jointly investigated through the Hawks and also the SIU’s Specialised Economic Operations Device. (The majority of these instances, seven of which had been lodged in 2020, require previous NLC Main functioning officer Phillemon Letwaba, who resigned under a cloud in 2022, and Pretoria lawyer Leslie Ramulifho.)

De Kock stated the NPA faced a number of “problems” in prosecuting conditions. These, he reported, bundled

the lapse of time in between when the offences had been committed and the issuing of your Presidential Proclamation on one November 2020;
“unavailability of witnesses and/or documentary evidence” (Previously this year, the SIU advised the committee that important paperwork needed in a few prosecutions had been deleted within the NLC Laptop system or had gone missing from Metrofile, a warehouse where copies of files are archived and saved);
the fact that some implicated persons remain utilized by NLC; and
A challenge towards the legality from the Presidential Proclamation by former NLC chairperson Alfred Nevhutanda.
“The NPA is committed to making sure finalisation in these issues. To this conclusion, a crew of devoted prosecutors is allocated to supervise all NLC matters currently less than investigation,” de Kock claimed. “Matters are taken care of for a priority. When [the] investigations are completed, the NPA is likely to make a decision.”

What the businesses say (or don’t)
GroundUp was only in a position to get comment from one of many 5 companies accused because of the SIU in Parliament of manufacturing fraudulent once-a-year economic statements,TTP Consulting.

Aubrey Moeng, considered one of TTP’s two administrators, explained within an e mail in response to inquiries: “Resulting from shopper confidentiality, we need to suggest that TTP Consulting just isn't willing to disclose customers’ financial confidential details with the public or media … without the consent of the customer or even a legal motive.”

The organization is usually a “spouse” of quite a few point out entities, such as SARS plus the CIPC, Based on its Internet site.

Neither of The 2 directors of Dzata Accountants, who're equally shown as inactive to the CIPC sign-up of firms, responded to emailed queries. The business is deregistered from the CIPC for failing to post fiscal statements considering that 2021.

The sole director of Mageba Ntuli Investing and Consulting Services, Patrick Zulu, died a few many years in the past, Based on Formal records. The business was deregistered via the CIPC for failing to submit economic statements due to the fact 2021.

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

GroundUp was struggling to discover any listing for Tafta Consulting and Accounting Companies While using the CIPC. We were also struggling to trace any of the corporation’s administrators to ask for remark.

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