The Specific Investigating Unit has recognized 5 accounting companies that served loot Lottery money. Graphic: Lisa Nelson
The Distinctive Investigating Unit has determined 5 accounting and auditing corporations that helped non-financial gain organizations loot Lottery dollars intended for “superior triggers”.
The accounting corporations compiled fraudulent economic statements employed by these companies to make an application for Lottery funding, the SIU instructed Parliament.
Performing Main national investigations officer Zodwa Xesibe mentioned the SIU would just take action to own these companies blacklisted.
A four-year probe through the fox888 Distinctive Investigating Unit (SIU) has exposed five accounting and auditing corporations that served dodgy non-profit corporations loot numerous millions of rands meant for “very good results in” in the Lottery.
These firms had been described through the SIU as “Qualified enablers,” who “compiled fraudulent money statements” that were utilized by the companies to make an application for Lottery funding.
The 5 companies were named in Parliament by the SIU’s performing Main countrywide investigations officer Zodwa Xesibe. They're TTP Consulting, Dzata Accountants, Magodi Consulting, Mageba Ntuli Consulting and Tafta Consulting and Accounting Companies.
Fraudulent financials made by these 5 accounting firms served practically forty businesses get their hands on lottery funding, based on the SIU presentation.
Depending on a Instrument made up of info with all lottery grants given that 2002, these firms bought in excess of R314-million in funding.
“These NPCs were being funded through the Countrywide Lotteries Fee (NLC) nevertheless the resources weren't used for his or her meant objective,” Xesibe informed Parliament’s Trade, Marketplace and Level of competition Portfolio Committee past week.
The SIU, the Hawks as well as Countrywide Prosecuting Authority (NPA) have been in Parliament to report to the committee on development in bringing persons and organisations involved with looting the lottery to ebook.
Xesibe explained to GroundUp the SIU meant to lodge grievances from the accounting corporations associated and was examining if these corporations were being registered and, In that case, with which professional bodies.
“We wish these companies to become blacklisted,” she informed GroundUp.
To qualify for Lottery funding, an organisation was necessary to develop two years of annual monetary statements, Xesibe defined in Parliament.
Nonetheless, being an ongoing six-12 months investigation into lottery corruption by GroundUp has disclosed, hijacked non-gain organisations (NPOs) or new shelf non-income firms (NPCs) with no money keep track of data had been accustomed to submit an application for funding.
In some cases, Just about equivalent monetary statements had been developed for unrelated organisations, normally with just the names from the organisations transformed, GroundUp’s investigation found.
Documents submitted by genuine NPCs for unsuccessful grant applications were being often employed by new or hijacked NPCs and NPOs to make an application for funding. The small print and documents from the unsuccessful applicants were supplied by senior Lottery officers to the dodgy applicants.
With cursory or - normally - no verification, these dodgy applicants ended up awarded many rands in grants. Often more tranches of resources have been paid out out without having Significantly examining about the development of initiatives.
The vast majority of such grants have been made via proactive funding, which was at the heart in the looting with the lottery. Proactive funding permitted the Minister of Trade, Field and Competitors, or even the NLC along with its board, to establish results in to fund without initial demanding an application. This was stopped each time a new NLC board was appointed.
R2-billion in grants below investigation
SIU head Advocate Andy Mothibi mentioned the SIU was at present investigating grants valued at in excess of R2-billion, plus the unit was however often receiving suggestion-offs about much more corruption.
He explained to MPs which the SIU’s investigation had been broken into three phases: the primary, that has been finalised, probed dodgy grants amounting to R280-million, and the second, also accomplished, concerned R247-million. While in the 3rd period, resulting from be finalised at the conclusion of the 12 months, the SIU is investigating grants valued at almost R906-million, involving 40 NPOs and NPCs, Mothibi said.
He said which the SIU would implement “quickly” to the Presidential Proclamation, initially granted in Oct 2020 to research corruption involving lottery grants, to get extended to include procurement from the NLC.
The SIU investigation had to this point triggered 13 disciplinary referrals on the NLC, and administrative referrals to SARS and the businesses and Mental Homes Fee to blacklist folks implicated during the looting. Grievances involving two men and women were referred into the Authorized Apply Council and also the SA Institute of Chartered Accountants.
The SIU had observed several trends under the earlier NLC board and executive - many of whom are already implicated in looting - Mothibi told MPs.
This provided a “development of collusion in between NLC officers and NPOs and NPCs”, “the hijacking of NPOs and NPCs” and “general maladministration within the acceptance of grants,” he claimed.
Slow development via the NPA
The SIU has frozen properties, Qualities, cars and trucks and other property truly worth tens of thousands and thousands that were purchased with lottery resources, but MPs expressed concern at slow development in prosecuting those associated with the looting. (The SIU is mandated only to Get well belongings bought with stolen condition cash and doesn't have prosecuting powers).
Though the SIU has referred fifteen issues to your NPA, thus far only two individuals have been brought just before a court. Two men appeared in courtroom in Kimberley just lately in connection with misappropriated cash gathered for the venture to beat gender-based mostly violence.
In August 2022 Christopher Tshivule was sentenced to 8 several years in jail for his portion inside a R1.five-million lottery grant fraud. Expenses against two persons charged with him, who the SIU has described as “kingpins” from the corruption that overwhelmed the NLC, were being dropped.
Big-Basic Mmeli Makinyane, the performing divisional commissioner for priority offences, informed MPs the Hawks were being now investigating 16 lottery corruption-related scenarios. Yet another a person - the Kimberley issue - is before a court and two are despatched to the NPA for a decision to prosecute. A further 5 instances are now being investigated through the SAPS detective and forensic companies, he explained.
Describing The explanations for that hold off in prosecutions, NPA Deputy Nationwide Director Rodney de Kock explained A part of The key reason why was that the Hawks needed to do additional investigations every time they obtained dossiers through the SIU.
“In essence, the investigations undertaken through the SIU tend not to satisfy criminal requirements for prosecutions.”
Consequently, the NPA experienced to operate with investigators while in the DPCI (the Hawks) and SAPS to carry out prison investigations and make sure the evidence satisfies legal prosecution expectations, he stated, incorporating: “That said, the get the job done on the SIU is vital and contributes drastically to this method.”
De Kock explained that the SIU’s investigation “often ends in multiple referrals. The referrals may possibly ultimately cause a person docket and 1 courtroom situation.”
He claimed that twelve issues, which happen to be “around 85% complete”, were being staying jointly investigated with the Hawks as well as the SIU’s Specialised Economic Functions Unit. (The majority of these circumstances, 7 of which have been lodged in 2020, involve previous NLC chief working officer Phillemon Letwaba, who resigned below a cloud in 2022, and Pretoria law firm Leslie Ramulifho.)
De Kock explained the NPA confronted numerous “challenges” in prosecuting situations. These, he stated, involved
the lapse of time involving when the offences ended up fully commited and also the issuing on the Presidential Proclamation on one November 2020;
“unavailability of witnesses and/or documentary proof” (Previously this calendar year, the SIU informed the committee that critical files desired in a few prosecutions had been deleted through the NLC computer system or experienced long gone missing from Metrofile, a warehouse in which copies of files are archived and stored);
the fact that some implicated people today remain employed by NLC; and
A obstacle towards the legality of your Presidential Proclamation by former NLC chairperson Alfred Nevhutanda.
“The NPA is dedicated to making certain finalisation in these issues. To this end, a crew of dedicated prosecutors has actually been allocated to oversee all NLC matters at this time less than investigation,” de Kock stated. “Matters are handled being a precedence. At the time [the] investigations are accomplished, the NPA can make a choice.”
What the companies say (or don’t)
GroundUp was only ready to get remark from on the list of 5 providers accused via the SIU in Parliament of producing fraudulent once-a-year economical statements,TTP Consulting.
Aubrey Moeng, amongst TTP’s two directors, stated within an email in response to concerns: “Due to consumer confidentiality, we wish to suggest that TTP Consulting is not really willing to divulge purchasers’ monetary confidential information and facts with the public or media … without the consent on the customer or a legal cause.”
The corporation is really a “lover” of several point out entities, including SARS and also the CIPC, In line with its Web page.
Neither of The 2 directors of Dzata Accountants, who are both of those listed as inactive on the CIPC sign up of organizations, responded to emailed questions. The corporate is deregistered because of the CIPC for failing to post financial statements considering that 2021.
The only real director of Mageba Ntuli Investing and Consulting Company, Patrick Zulu, died three many years ago, Based on official documents. The corporation was deregistered from the CIPC for failing to submit monetary statements given that 2021.
Matamela Magodi, the sole director of Magodi Consultants, didn't reply to queries emailed to him.
GroundUp was struggling to come across any listing for Tafta Consulting and Accounting Companies Using the CIPC. We were being also not able to trace any of the company’s directors to request remark.