The accountants who assisted loot the Lottery
The accountants who assisted loot the Lottery
Blog Article
The Specific Investigating Device has identified 5 accounting companies that aided loot Lottery cash. Graphic: Lisa Nelson
The Unique Investigating Device has recognized 5 accounting and auditing companies that aided non-earnings providers loot Lottery income supposed for “fantastic results in”.
The accounting companies compiled fraudulent fiscal statements used by these providers to submit an application for Lottery funding, the SIU instructed Parliament.
Performing chief countrywide investigations officer Zodwa Xesibe claimed the SIU would just take action to own these firms blacklisted.
A four-calendar year probe by the ตรวจ ล้อ ต เต อ รี่ Special Investigating Unit (SIU) has exposed 5 accounting and auditing corporations that helped dodgy non-financial gain firms loot countless many rands designed for “very good causes” from your Lottery.
These companies were being explained from the SIU as “professional enablers,” who “compiled fraudulent monetary statements” which were used by the businesses to make an application for Lottery funding.
The five corporations have been named in Parliament from the SIU’s performing Main countrywide investigations officer Zodwa Xesibe. They are TTP Consulting, Dzata Accountants, Magodi Consulting, Mageba Ntuli Consulting and Tafta Consulting and Accounting Services.
Fraudulent financials produced by these five accounting companies aided almost 40 providers get their arms on lottery funding, according to the SIU presentation.
Based upon a Resource that contains facts with all lottery grants due to the fact 2002, these firms acquired over R314-million in funding.
“These NPCs ended up funded through the Nationwide Lotteries Fee (NLC) but the funds weren't utilised for his or her meant intent,” Xesibe advised Parliament’s Trade, Business and Opposition Portfolio Committee past week.
The SIU, the Hawks plus the Countrywide Prosecuting Authority (NPA) were in Parliament to report to the committee on progress in bringing persons and organisations involved with looting the lottery to e book.
Xesibe informed GroundUp that the SIU meant to lodge complaints against the accounting companies associated and was examining if these firms were being registered and, In that case, with which professional bodies.
“We would like these organizations for being blacklisted,” she told GroundUp.
To qualify for Lottery funding, an organisation was necessary to produce two years of yearly financial statements, Xesibe defined in Parliament.
Even so, as an ongoing six-year investigation into lottery corruption by GroundUp has exposed, hijacked non-revenue organisations (NPOs) or new shelf non-revenue companies (NPCs) without having fiscal track data had been utilized to apply for funding.
In certain circumstances, almost similar economical statements have been manufactured for unrelated organisations, usually with only the names of your organisations altered, GroundUp’s investigation observed.
Files submitted by genuine NPCs for unsuccessful grant applications had been usually utilized by new or hijacked NPCs and NPOs to make an application for funding. The small print and documents from the unsuccessful applicants had been supplied by senior Lottery officers to your dodgy applicants.
With cursory or - frequently - no verification, these dodgy applicants were awarded millions of rands in grants. Sometimes supplemental tranches of money were compensated out with no A lot examining on the progress of projects.
The overwhelming majority of these grants have been built through proactive funding, which was at the center of the looting in the lottery. Proactive funding permitted the Minister of Trade, Field and Opposition, or even the NLC along side its board, to detect causes to fund without first demanding an software. This was stopped whenever a new NLC board was appointed.
R2-billion in grants below investigation
SIU head Advocate Andy Mothibi stated the SIU was currently investigating grants valued at around R2-billion, plus the unit was still consistently getting idea-offs about a lot more corruption.
He explained to MPs that the SIU’s investigation had been damaged into three phases: the main, that has been finalised, probed dodgy grants amounting to R280-million, and the next, also completed, concerned R247-million. From the third period, because of 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 explained the SIU would use “quickly” to the Presidential Proclamation, initially granted in October 2020 to analyze corruption involving lottery grants, being extended to incorporate procurement via the NLC.
The SIU investigation experienced to date led to thirteen disciplinary referrals for the NLC, and administrative referrals to SARS and the businesses and Intellectual Properties Commission to blacklist people implicated during the looting. Problems involving two persons had been referred to the Authorized Practice Council plus the SA Institute of Chartered Accountants.
The SIU had observed many traits underneath the previous NLC board and executive - a lot of whom are implicated in looting - Mothibi explained to MPs.
This integrated a “trend of collusion among NLC officials and NPOs and NPCs”, “the hijacking of NPOs and NPCs” and “general maladministration in the acceptance of grants,” he said.
Slow development because of the NPA
The SIU has frozen properties, Houses, cars and trucks together with other property worthy of tens of thousands and thousands which were purchased with lottery cash, but MPs expressed problem at slow development in prosecuting Those people associated with the looting. (The SIU is mandated only to Get better assets purchased with stolen point out money and doesn't have prosecuting powers).
Even though the SIU has referred 15 matters into the NPA, to date only two people have been introduced in advance of a court docket. Two Males appeared in court in Kimberley not long ago in reference to misappropriated cash gathered for just a project to battle gender-dependent violence.
In August 2022 Christopher Tshivule was sentenced to 8 decades in jail for his part within a R1.five-million lottery grant fraud. Rates from two people charged with him, who the SIU has described as “kingpins” within the corruption that overwhelmed the NLC, had been dropped.
Key-Common Mmeli Makinyane, the performing divisional commissioner for precedence offences, instructed MPs that the Hawks have been at present investigating sixteen lottery corruption-associated cases. A different a person - the Kimberley make any difference - is ahead of a court and two are despatched towards the NPA for a choice to prosecute. An additional five scenarios are increasingly being investigated via the SAPS detective and forensic providers, he claimed.
Explaining the reasons for that hold off in prosecutions, NPA Deputy Nationwide Director Rodney de Kock mentioned Section of The explanation was that the Hawks had to do even more investigations after they received dossiers with the SIU.
“In essence, the investigations undertaken through the SIU will not fulfill criminal criteria for prosecutions.”
Consequently, the NPA had to work with investigators from the DPCI (the Hawks) and SAPS to perform criminal investigations and be certain that the proof meets criminal prosecution specifications, he claimed, adding: “That said, the get the job done with the SIU is crucial and contributes enormously to this method.”
De Kock explained that the SIU’s investigation “usually leads to numerous referrals. The referrals might in the end end in a single docket and 1 court docket scenario.”
He mentioned that twelve matters, which happen to be “about eighty five% complete”, had been currently being jointly investigated via the Hawks and also the SIU’s Specialised Economic Operations Unit. (Many of these situations, seven of which had been lodged in 2020, include previous NLC Main functioning officer Phillemon Letwaba, who resigned underneath a cloud in 2022, and Pretoria attorney Leslie Ramulifho.)
De Kock stated the NPA confronted various “problems” in prosecuting instances. These, he said, bundled
the lapse of time between if the offences were dedicated and the issuing in the Presidential Proclamation on one November 2020;
“unavailability of witnesses and/or documentary proof” (Earlier this yr, the SIU advised the committee that vital documents necessary in a few prosecutions had been deleted through the NLC Laptop or computer procedure or experienced absent missing from Metrofile, a warehouse in which copies of documents are archived and saved);
The reality that some implicated persons remain utilized by NLC; and
A challenge into the legality of your Presidential Proclamation by previous NLC chairperson Alfred Nevhutanda.
“The NPA is committed to making sure finalisation in these matters. To this finish, a workforce of devoted prosecutors continues to be allotted to supervise all NLC matters at this time below investigation,” de Kock claimed. “Issues are handled for a priority. When [the] investigations are done, the NPA will make a decision.”
What the companies say (or don’t)
GroundUp was only able to get comment from among the list of five firms accused because of the SIU in Parliament of manufacturing fraudulent once-a-year economical statements,TTP Consulting.
Aubrey Moeng, one of TTP’s two directors, said within an electronic mail in reaction to inquiries: “On account of consumer confidentiality, we want to recommend that TTP Consulting will not be willing to disclose clientele’ monetary private details with the public or media … without the consent of the consumer or perhaps a lawful reason.”
The corporation can be a “partner” of various point out entities, which includes SARS plus the CIPC, In accordance with its Web page.
Neither of the two administrators of Dzata Accountants, who will be both listed as inactive around the CIPC register of companies, responded to emailed questions. The company has been deregistered by the CIPC for failing to post economic statements given that 2021.
The only real director of Mageba Ntuli Buying and selling and Consulting Company, Patrick Zulu, died three decades ago, according to official data. The organization was deregistered because of the CIPC for failing to submit economical statements considering that 2021.
Matamela Magodi, the only real director of Magodi Consultants, didn't reply to concerns emailed to him.
GroundUp was unable to uncover any listing for Tafta Consulting and Accounting Services With all the CIPC. We have been also not able to trace any of the organization’s directors to request comment.
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