The Special Investigating Unit has identified five accounting corporations that served loot Lottery cash. Graphic: Lisa Nelson
The Particular Investigating Unit has identified five accounting and auditing corporations that served non-profit corporations loot Lottery money supposed for “excellent leads to”.
The accounting firms compiled fraudulent economic statements used by these corporations to make an application for Lottery funding, the SIU instructed Parliament.
Acting Main nationwide investigations officer Zodwa Xesibe claimed the SIU would consider action to obtain these companies blacklisted.
A 4-calendar year probe by the ตัว หวย Unique Investigating Device (SIU) has exposed five accounting and auditing companies that helped dodgy non-earnings firms loot countless an incredible number of rands designed for “great leads to” within the Lottery.
These firms have been explained via the SIU as “Specialist enablers,” who “compiled fraudulent economical statements” that were utilized by the companies to make an application for Lottery funding.
The five companies ended up named in Parliament with the SIU’s performing chief countrywide investigations officer Zodwa Xesibe. They can be TTP Consulting, Dzata Accountants, Magodi Consulting, Mageba Ntuli Consulting and Tafta Consulting and Accounting Providers.
Fraudulent financials made by these 5 accounting companies aided approximately forty companies get their hands on lottery funding, according to the SIU presentation.
Based upon a tool containing knowledge with all lottery grants considering the fact that 2002, these companies bought around R314-million in funding.
“These NPCs ended up funded with the National Lotteries Fee (NLC) although the cash were not made use of for his or her intended intent,” Xesibe advised Parliament’s Trade, Market and Competitors Portfolio Committee very last 7 days.
The SIU, the Hawks along with the Nationwide Prosecuting Authority (NPA) were in Parliament to report to the committee on development in bringing people today and organisations linked to looting the lottery to e book.
Xesibe instructed GroundUp which the SIU intended to lodge grievances versus the accounting firms concerned and was checking if these companies were being registered and, If that is so, with which Skilled bodies.
“We wish these corporations to be blacklisted,” she advised GroundUp.
To qualify for Lottery funding, an organisation was necessary to develop two several years of annual fiscal statements, Xesibe described in Parliament.
Even so, being an ongoing six-yr investigation into lottery corruption by GroundUp has disclosed, hijacked non-profit organisations (NPOs) or new shelf non-gain companies (NPCs) without having monetary track documents had been used to apply for funding.
In certain circumstances, almost similar financial statements had been generated for unrelated organisations, normally with only the names of the organisations altered, GroundUp’s investigation observed.
Paperwork submitted by genuine NPCs for unsuccessful grant applications were being generally utilized by new or hijacked NPCs and NPOs to make an application for funding. The main points and paperwork from the unsuccessful applicants have been provided by senior Lottery officers on the dodgy applicants.
With cursory or - usually - no verification, these dodgy applicants had been awarded an incredible number of rands in grants. From time to time added tranches of funds were being compensated out with out Significantly examining to the development of tasks.
The vast majority of those grants ended up built via proactive funding, which was at the guts of your looting in the lottery. Proactive funding permitted the Minister of Trade, Market and Competition, or the NLC at the side of its board, to detect leads to to fund with out initial requiring an software. This was stopped each time a new NLC board was appointed.
R2-billion in grants less than investigation
SIU head Advocate Andy Mothibi explained the SIU was at the moment investigating grants valued at more than R2-billion, and also the device was even now often getting idea-offs about extra corruption.
He instructed MPs 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 concluded, associated R247-million. While in the 3rd phase, as a consequence of be finalised at the end of the yr, the SIU is investigating grants valued at Practically R906-million, involving forty NPOs and NPCs, Mothibi stated.
He stated that the SIU would utilize “soon” for the Presidential Proclamation, at first granted in Oct 2020 to analyze corruption involving lottery grants, to generally be prolonged to include procurement from the NLC.
The SIU investigation experienced to this point brought about 13 disciplinary referrals to the NLC, and administrative referrals to SARS and the Companies and Mental Properties Fee to blacklist men and women implicated inside the looting. Problems involving two folks were referred towards the Lawful Exercise Council as well as the SA Institute of Chartered Accountants.
The SIU had noticed a number of tendencies underneath the preceding NLC board and executive - most of whom have been implicated in looting - Mothibi advised MPs.
This bundled a “trend of collusion in between NLC officials and NPOs and NPCs”, “the hijacking of NPOs and NPCs” and “common maladministration inside the acceptance of grants,” he claimed.
Sluggish progress via the NPA
The SIU has frozen properties, Qualities, cars and other belongings worthy of tens of millions which were purchased with lottery resources, but MPs expressed concern at sluggish development in prosecuting People involved in the looting. (The SIU is mandated only to Get well belongings acquired with stolen state money and does not have prosecuting powers).
When the SIU has referred fifteen matters into the NPA, thus far only two folks have been introduced before a court docket. Two Gentlemen appeared in courtroom in Kimberley not too long ago in connection with misappropriated resources collected for any task to fight gender-primarily based violence.
In August 2022 Christopher Tshivule was sentenced to 8 yrs in jail for his section in a very R1.5-million lottery grant fraud. Costs versus two persons billed with him, who the SIU has referred to as “kingpins” in the corruption that overcome the NLC, have been dropped.
Important-Basic Mmeli Makinyane, the acting divisional commissioner for priority offences, explained to MPs that the Hawks ended up currently investigating sixteen lottery corruption-associated circumstances. Yet another one particular - the Kimberley make any difference - is prior to a court and two happen to be despatched to the NPA for a call to prosecute. An additional 5 conditions are now being investigated by the SAPS detective and forensic services, he claimed.
Outlining The explanations to the hold off in prosecutions, NPA Deputy Nationwide Director Rodney de Kock said Element of The explanation was which the Hawks needed to do additional investigations every time they obtained dossiers with the SIU.
“In essence, the investigations carried out from the SIU tend not to fulfill prison standards for prosecutions.”
Consequently, the NPA had to operate with investigators from the DPCI (the Hawks) and SAPS to carry out legal investigations and be certain that the evidence satisfies criminal prosecution standards, he stated, adding: “Having said that, the get the job done in the SIU is significant and contributes significantly to this process.”
De Kock said that the SIU’s investigation “typically brings about multiple referrals. The referrals might eventually cause one particular docket and just one courtroom scenario.”
He claimed that twelve issues, which happen to be “around 85% complete”, were remaining jointly investigated because of the Hawks along with the SIU’s Specialised Economic Functions Unit. (Many of these cases, seven of which ended up lodged in 2020, include former NLC Main operating officer Phillemon Letwaba, who resigned beneath a cloud in 2022, and Pretoria law firm Leslie Ramulifho.)
De Kock stated the NPA faced various “challenges” in prosecuting scenarios. These, he said, incorporated
the lapse of your time involving if the offences ended up dedicated as well as issuing of your Presidential Proclamation on one November 2020;
“unavailability of witnesses and/or documentary evidence” (Earlier this year, the SIU explained to the committee that vital files desired in a few prosecutions had been deleted from the NLC computer procedure or had gone lacking from Metrofile, a warehouse exactly where copies of files are archived and stored);
The point that some implicated men and women remain employed by NLC; and
A problem towards the legality on the Presidential Proclamation by previous NLC chairperson Alfred Nevhutanda.
“The NPA is committed to making certain finalisation in these matters. To this conclude, a workforce of dedicated prosecutors is allocated to oversee all NLC matters presently beneath investigation,” de Kock explained. “Matters are handled as being a priority. Once [the] investigations are done, the NPA could make a decision.”
What the companies say (or don’t)
GroundUp was only capable to get comment from one of several five companies accused by the SIU in Parliament of manufacturing fraudulent annual economical statements,TTP Consulting.
Aubrey Moeng, considered one of TTP’s two directors, stated within an email in reaction to concerns: “Because of customer confidentiality, we wish to advise that TTP Consulting will not be willing to divulge purchasers’ financial confidential facts with the general public or media … with no consent from the consumer or maybe a authorized motive.”
The corporate is often a “partner” of numerous state entities, such as SARS and also the CIPC, In accordance with its Web site.
Neither of The 2 administrators of Dzata Accountants, who're each listed as inactive over the CIPC register of companies, responded to emailed issues. The business is deregistered from the CIPC for failing to submit financial statements given that 2021.
The only real director of Mageba Ntuli Investing and Consulting Support, Patrick Zulu, died three several years in the past, In keeping with official documents. The company was deregistered through the CIPC for failing to submit financial statements because 2021.
Matamela Magodi, the sole director of Magodi Consultants, didn't respond to queries emailed to him.
GroundUp was unable to discover any listing for Tafta Consulting and Accounting Solutions Using the CIPC. We had been also struggling to trace any of the business’s directors to request remark.