The accountants who aided loot the Lottery

The accountants who aided loot the Lottery

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The Particular Investigating Unit has recognized five accounting firms that helped loot Lottery resources. Graphic: Lisa Nelson

The Distinctive Investigating Device has recognized 5 accounting and auditing companies that served non-financial gain corporations loot Lottery funds supposed for “fantastic brings about”.
The accounting corporations compiled fraudulent economical statements employed by these companies to make an application for Lottery funding, the SIU informed Parliament.
Performing chief countrywide investigations officer Zodwa Xesibe mentioned the SIU would acquire motion to possess these corporations blacklisted.
A 4-year probe through the ผล หวย Distinctive Investigating Device (SIU) has exposed five accounting and auditing companies that aided dodgy non-income providers loot numerous millions of rands meant for “great triggers” through the Lottery.

These firms were explained because of the SIU as “Specialist enablers,” who “compiled fraudulent money statements” that were used by the companies to submit an application for Lottery funding.

The five companies had been named in Parliament through the SIU’s acting chief national investigations officer Zodwa Xesibe. They may be TTP Consulting, Dzata Accountants, Magodi Consulting, Mageba Ntuli Consulting and Tafta Consulting and Accounting Products and services.

Fraudulent financials produced by these five accounting corporations helped just about forty businesses get their arms on lottery funding, in accordance with the SIU presentation.

Determined by a tool containing knowledge with all lottery grants due to the fact 2002, these firms obtained about R314-million in funding.

“These NPCs had been funded from the National Lotteries Fee (NLC) but the funds weren't utilised for their intended purpose,” Xesibe explained to Parliament’s Trade, Business and Levels of competition Portfolio Committee previous 7 days.

The SIU, the Hawks and also the Nationwide Prosecuting Authority (NPA) had been in Parliament to report back to the committee on progress in bringing people and organisations involved in looting the lottery to e-book.

Xesibe explained to GroundUp that the SIU intended to lodge issues against the accounting firms associated and was examining if these companies ended up registered and, if so, with which Experienced bodies.

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

To qualify for Lottery funding, an organisation was necessary to develop two years of yearly monetary statements, Xesibe defined in Parliament.

However, as an ongoing six-yr investigation into lottery corruption by GroundUp has uncovered, hijacked non-earnings organisations (NPOs) or new shelf non-income corporations (NPCs) without any economic observe records have been utilized to apply for funding.

In some cases, Pretty much similar economical statements were being generated for unrelated organisations, generally with just the names with the organisations transformed, GroundUp’s investigation discovered.

Paperwork submitted by legitimate NPCs for unsuccessful grant applications have been normally employed by new or hijacked NPCs and NPOs to apply for funding. The details and paperwork with the unsuccessful applicants were supplied by senior Lottery officials towards the dodgy applicants.

With cursory or - frequently - no verification, these dodgy applicants were awarded numerous rands in grants. Often added tranches of money were compensated out devoid of Considerably examining about the development of projects.

The vast majority of those grants were being made through proactive funding, which was at the center with the looting of your lottery. Proactive funding allowed the Minister of Trade, Business and Level of competition, or maybe the NLC in conjunction with its board, to determine leads to to fund without having initial requiring an software. This was stopped whenever a new NLC board was appointed.

R2-billion in grants under investigation
SIU head Advocate Andy Mothibi reported the SIU was at this time investigating grants valued at above R2-billion, and also the device was nonetheless on a regular basis getting idea-offs about a lot more corruption.

He explained to MPs that the SIU’s investigation had been broken into 3 phases: the main, which has been finalised, probed dodgy grants amounting to R280-million, and the second, also accomplished, included R247-million. During the 3rd phase, as a result of be finalised at the end of the yr, the SIU is investigating grants valued at Just about R906-million, involving forty NPOs and NPCs, Mothibi claimed.

He reported which the SIU would utilize “before long” for that Presidential Proclamation, initially granted in October 2020 to investigate corruption involving lottery grants, to become prolonged to include procurement from the NLC.

The SIU investigation experienced thus far resulted in thirteen disciplinary referrals to your NLC, and administrative referrals to SARS and the Companies and Mental Properties Fee to blacklist individuals implicated during the looting. Issues involving two people had been referred to your Legal Follow Council as well as 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 included a “trend of collusion between NLC officers and NPOs and NPCs”, “the hijacking of NPOs and NPCs” and “typical maladministration during the acceptance of grants,” he explained.

Slow development because of the NPA
The SIU has frozen properties, Qualities, cars and other property really worth tens of tens of millions that were purchased with lottery money, but MPs expressed concern at gradual development in prosecuting those involved in the looting. (The SIU is mandated only to recover belongings bought with stolen point out cash and doesn't have prosecuting powers).

Though the SIU has referred fifteen matters to your NPA, to this point only two individuals have been introduced before a courtroom. Two Males appeared in courtroom in Kimberley just lately in connection with misappropriated cash collected for your job to fight gender-based mostly violence.

In August 2022 Christopher Tshivule was sentenced to 8 many years in prison for his aspect inside of a R1.five-million lottery grant fraud. Fees in opposition to two persons charged with him, who the SIU has described as “kingpins” in the corruption that confused the NLC, were dropped.

Major-Common Mmeli Makinyane, the performing divisional commissioner for priority offences, advised MPs which the Hawks were now investigating 16 lottery corruption-similar instances. A further one particular - the Kimberley make a difference - is in advance of a court and two are already despatched for the NPA for a decision to prosecute. An extra 5 scenarios are increasingly being investigated by the SAPS detective and forensic providers, he mentioned.

Detailing the reasons to the delay in prosecutions, NPA Deputy Nationwide Director Rodney de Kock explained Portion of The explanation was which the Hawks had to do even more investigations after they been given dossiers within the SIU.

“In essence, the investigations undertaken by the SIU don't fulfill criminal criteria for prosecutions.”

For that reason, the NPA had to operate with investigators inside the DPCI (the Hawks) and SAPS to perform felony investigations and ensure that the evidence satisfies prison prosecution expectations, he said, including: “That said, the work from the SIU is vital and contributes greatly to this process.”

De Kock mentioned the SIU’s investigation “often results in several referrals. The referrals may ultimately result in a person docket and just one courtroom case.”

He claimed that 12 issues, which might be “about eighty five% complete”, have been getting jointly investigated from the Hawks and the SIU’s Specialised Economic Operations Unit. (Most of these instances, seven of which have been lodged in 2020, require former NLC chief operating officer Phillemon Letwaba, who resigned below a cloud in 2022, and Pretoria lawyer Leslie Ramulifho.)

De Kock mentioned the NPA faced several “challenges” in prosecuting conditions. These, he reported, bundled

the lapse of your time amongst when the offences were dedicated as well as issuing on the Presidential Proclamation on 1 November 2020;
“unavailability of witnesses and/or documentary evidence” (Earlier this calendar year, the SIU explained to the committee that essential documents desired in some prosecutions were deleted from your NLC Pc procedure or experienced gone missing from Metrofile, a warehouse the place copies of files are archived and saved);
The point that some implicated folks are still utilized by NLC; and
A challenge on the legality with the Presidential Proclamation by previous NLC chairperson Alfred Nevhutanda.
“The NPA is committed to making sure finalisation in these issues. To this stop, a group of dedicated prosecutors has become allocated to supervise all NLC matters currently underneath investigation,” de Kock mentioned. “Matters are taken care of like a precedence. As soon as [the] investigations are done, the NPA will make a choice.”

What the businesses say (or don’t)
GroundUp was only capable of get comment from one of the five corporations accused through the SIU in Parliament of manufacturing fraudulent once-a-year economic statements,TTP Consulting.

Aubrey Moeng, amongst TTP’s two administrators, said in an e-mail in response to issues: “As a result of consumer confidentiality, we desire to advise that TTP Consulting just isn't willing to disclose clientele’ monetary private facts with the general public or media … with no consent on the consumer or a authorized reason.”

The corporation is actually a “partner” of many point out entities, such as SARS plus the CIPC, In accordance with its website.

Neither of the two directors of Dzata Accountants, who're both equally listed as inactive within the CIPC register of corporations, responded to emailed questions. The business has long been deregistered via the CIPC for failing to submit economic statements given that 2021.

The sole director of Mageba Ntuli Investing and Consulting Provider, Patrick Zulu, died three decades back, In line with official data. The business was deregistered from 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 not able to obtain any listing for Tafta Consulting and Accounting Solutions Together with the CIPC. We ended up also struggling to trace any of the company’s administrators to request comment.

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