The Distinctive Investigating Unit has identified five accounting companies that served loot Lottery money. Graphic: Lisa Nelson
The Specific Investigating Device has recognized 5 accounting and auditing firms that served non-revenue providers loot Lottery revenue supposed for “fantastic results in”.
The accounting companies compiled fraudulent monetary statements used by these businesses to apply for Lottery funding, the SIU informed Parliament.
Acting chief national investigations officer Zodwa Xesibe said the SIU would consider motion to acquire these firms blacklisted.
A 4-year probe with the fox888 Exclusive Investigating Device (SIU) has exposed five accounting and auditing firms that served dodgy non-profit providers loot numerous a lot of rands intended for “fantastic brings about” in the Lottery.
These companies had been explained because of the SIU as “Skilled enablers,” who “compiled fraudulent monetary statements” which were used by the businesses to submit an application for Lottery funding.
The five providers were being named in Parliament because of the SIU’s performing Main national investigations officer Zodwa Xesibe. They're TTP Consulting, Dzata Accountants, Magodi Consulting, Mageba Ntuli Consulting and Tafta Consulting and Accounting Solutions.
Fraudulent financials produced by these 5 accounting firms helped virtually forty providers get their arms on lottery funding, in accordance with the SIU presentation.
Depending on a Resource containing data with all lottery grants considering the fact that 2002, these providers got more than R314-million in funding.
“These NPCs had been funded through the National Lotteries Commission (NLC) nevertheless the money weren't used for his or her intended intent,” Xesibe advised Parliament’s Trade, Business and Competitiveness Portfolio Committee last week.
The SIU, the Hawks along with the Countrywide Prosecuting Authority (NPA) have been in Parliament to report back to the committee on development in bringing individuals and organisations associated with looting the lottery to reserve.
Xesibe informed GroundUp the SIU intended to lodge issues against the accounting corporations involved and was examining if these corporations were registered and, In that case, with which Specialist bodies.
“We would like these organizations being blacklisted,” she informed GroundUp.
To qualify for Lottery funding, an organisation was necessary to create two years of once-a-year fiscal statements, Xesibe explained in Parliament.
On the other hand, being an ongoing six-calendar year investigation into lottery corruption by GroundUp has discovered, hijacked non-income organisations (NPOs) or new shelf non-profit providers (NPCs) without money track information were being used to apply for funding.
In some cases, Pretty much identical economic statements have been produced for unrelated organisations, typically with only the names of the organisations modified, GroundUp’s investigation found.
Paperwork submitted by authentic NPCs for unsuccessful grant programs have been frequently employed by new or hijacked NPCs and NPOs to submit an application for funding. The main points and files in the unsuccessful applicants ended up equipped by senior Lottery officers to your dodgy applicants.
With cursory or - normally - no verification, these dodgy applicants were being awarded many rands in grants. Sometimes additional tranches of resources were being paid out out with out Significantly examining over the development of tasks.
The overwhelming majority of these grants were built by means of proactive funding, which was at the heart with the looting on the lottery. Proactive funding permitted the Minister of Trade, Market and Competitiveness, or the NLC along side its board, to identify results in to fund without having first requiring an application. This was stopped whenever 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 above R2-billion, as well as the unit was continue to consistently obtaining tip-offs about more corruption.
He explained to MPs the SIU’s investigation were broken into 3 phases: the 1st, which has been finalised, probed dodgy grants amounting to R280-million, and the 2nd, also done, involved R247-million. While in the 3rd phase, due to be finalised at the end of the calendar year, the SIU is investigating grants valued at Pretty much R906-million, involving 40 NPOs and NPCs, Mothibi explained.
He reported that the SIU would use “before long” for your Presidential Proclamation, initially granted in October 2020 to investigate corruption involving lottery grants, to become extended to incorporate procurement by the NLC.
The SIU investigation experienced to date resulted in thirteen disciplinary referrals to your NLC, and administrative referrals to SARS and the Companies and Mental Homes Fee to blacklist persons implicated while in the looting. Complaints involving two men and women were referred on the Lawful Apply Council as well as SA Institute of Chartered Accountants.
The SIU had observed many traits under the prior NLC board and government - lots of whom have been implicated in looting - Mothibi informed MPs.
This provided a “craze of collusion involving NLC officers and NPOs and NPCs”, “the hijacking of NPOs and NPCs” and “standard maladministration from the approval of grants,” he mentioned.
Slow development because of the NPA
The SIU has frozen properties, Qualities, cars as well as other belongings value tens of millions which were acquired with lottery funds, but MPs expressed worry at gradual progress in prosecuting All those associated with the looting. (The SIU is mandated only to Get well belongings purchased with stolen state cash and doesn't have prosecuting powers).
Although the SIU has referred 15 issues on the NPA, so far only two individuals have been introduced prior to a courtroom. Two Gentlemen appeared in courtroom in Kimberley not long ago in connection with misappropriated money gathered for a undertaking to beat gender-based violence.
In August 2022 Christopher Tshivule was sentenced to eight several years in prison for his element in a R1.5-million lottery grant fraud. Costs towards two people billed with him, who the SIU has called “kingpins” during the corruption that overcome the NLC, have been dropped.
Key-Standard Mmeli Makinyane, the acting divisional commissioner for priority offences, instructed MPs the Hawks had been currently investigating sixteen lottery corruption-related situations. One more one - the Kimberley issue - is before a court docket and two have already been sent to your NPA for a call to prosecute. An extra five conditions are increasingly being investigated from the SAPS detective and forensic products and services, he said.
Explaining The explanations for your hold off in prosecutions, NPA Deputy Nationwide Director Rodney de Kock explained Section of The explanation was that the Hawks needed to do even further investigations whenever they obtained dossiers within the SIU.
“In essence, the investigations carried out by the SIU never satisfy legal expectations for prosecutions.”
For that reason, the NPA had to operate with investigators from the DPCI (the Hawks) and SAPS to carry out felony investigations and be certain that the proof meets legal prosecution criteria, he reported, introducing: “Having said that, the do the job in the SIU is essential and contributes enormously to this method.”
De Kock mentioned the SIU’s investigation “usually leads to numerous referrals. The referrals may in the long run lead to a person docket and a single court docket situation.”
He reported that 12 issues, which happen to be “somewhere around 85% comprehensive”, were staying jointly investigated through the Hawks as well as SIU’s Specialised Economic Operations Device. (The majority of these situations, 7 of which were being lodged in 2020, involve former NLC Main functioning officer Phillemon Letwaba, who resigned below a cloud in 2022, and Pretoria law firm Leslie Ramulifho.)
De Kock stated the NPA confronted quite a few “issues” in prosecuting situations. These, he stated, included
the lapse of your time amongst once the offences were fully commited as well as the issuing of the Presidential Proclamation on 1 November 2020;
“unavailability of witnesses and/or documentary proof” (Before this 12 months, the SIU advised the committee that important paperwork desired in some prosecutions had been deleted with the NLC Pc process or experienced gone missing from Metrofile, a warehouse wherever copies of files are archived and saved);
The truth that some implicated people today remain used by NLC; and
A obstacle to the legality of the Presidential Proclamation by previous NLC chairperson Alfred Nevhutanda.
“The NPA is devoted to ensuring finalisation in these issues. To this close, a workforce of focused prosecutors has actually been allocated to oversee all NLC issues at present less than investigation,” de Kock explained. “Matters are managed like a precedence. As soon as [the] investigations are concluded, the NPA will make a decision.”
What the companies say (or don’t)
GroundUp was only ready to get remark from one of many five firms accused via the SIU in Parliament of manufacturing fraudulent yearly fiscal statements,TTP Consulting.
Aubrey Moeng, considered one of TTP’s two directors, mentioned within an e mail in response to concerns: “Because of shopper confidentiality, we prefer to advise that TTP Consulting is not really ready to disclose consumers’ financial confidential information with the public or media … with no consent of the consumer or simply a legal explanation.”
The company can be a “husband or wife” of a number of state entities, which includes SARS plus the CIPC, according to its Web site.
Neither of the two administrators of Dzata Accountants, that are both equally stated as inactive to the CIPC sign-up of businesses, responded to emailed questions. The corporation has long been deregistered because of the CIPC for failing to submit economical statements since 2021.
The only director of Mageba Ntuli Trading and Consulting Assistance, Patrick Zulu, died three yrs ago, As outlined by Formal information. The company was deregistered through the CIPC for failing to post financial statements considering that 2021.
Matamela Magodi, the only director of Magodi Consultants, didn't reply to issues emailed to him.
GroundUp was struggling to obtain any listing for Tafta Consulting and Accounting Solutions With all the CIPC. We have been also unable to trace any of the organization’s directors to request comment.
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