The Exclusive Investigating Device has recognized five accounting corporations that aided loot Lottery funds. Graphic: Lisa Nelson

The Distinctive Investigating Device has discovered five accounting and auditing corporations that served non-revenue companies loot Lottery cash meant for “great will cause”.
The accounting firms compiled fraudulent monetary statements used by these organizations to apply for Lottery funding, the SIU told Parliament.
Acting Main nationwide investigations officer Zodwa Xesibe explained the SIU would get motion to acquire these corporations blacklisted.
A four-yr probe by the ltpbet Exclusive Investigating Unit (SIU) has exposed five accounting and auditing corporations that assisted dodgy non-financial gain businesses loot many hundreds of millions of rands meant for “excellent causes” from the Lottery.

These companies were explained by the SIU as “professional enablers,” who “compiled fraudulent fiscal statements” which were used by the companies to make an application for Lottery funding.

The five organizations were being named in Parliament via the SIU’s performing chief 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 five accounting corporations aided nearly 40 businesses get their palms on lottery funding, based on the SIU presentation.

Depending on a Software made up of knowledge with all lottery grants considering that 2002, these businesses acquired about R314-million in funding.

“These NPCs were being funded by the National Lotteries Fee (NLC) though the resources weren't applied for his or her intended function,” Xesibe instructed Parliament’s Trade, Marketplace and Competitors Portfolio Committee last 7 days.

The SIU, the Hawks as well as Nationwide Prosecuting Authority (NPA) ended up in Parliament to report back to the committee on progress in bringing persons and organisations involved with looting the lottery to e-book.

Xesibe explained to GroundUp that the SIU intended to lodge grievances versus the accounting firms concerned and was checking if these companies ended up registered and, If that is so, with which Expert bodies.

“We want these firms being blacklisted,” she informed GroundUp.

To qualify for Lottery funding, an organisation was necessary to deliver two many years of once-a-year financial statements, Xesibe described in Parliament.

Even so, as an ongoing 6-calendar year investigation into lottery corruption by GroundUp has discovered, hijacked non-income organisations (NPOs) or new shelf non-earnings businesses (NPCs) without having fiscal track data were accustomed to submit an application for funding.

In a few circumstances, Pretty much similar economical statements have been created for unrelated organisations, normally with only the names in the organisations improved, GroundUp’s investigation found.

Documents submitted by genuine NPCs for unsuccessful grant applications had been frequently used by new or hijacked NPCs and NPOs to submit an application for funding. The main points and paperwork of your unsuccessful applicants ended up supplied by senior Lottery officers to your dodgy applicants.

With cursory or - normally - no verification, these dodgy applicants have been awarded a lot of rands in grants. Often further tranches of resources have been paid out without much examining over the progress of initiatives.

The overwhelming majority of these grants have been manufactured by using proactive funding, which was at the guts of your looting of the lottery. Proactive funding allowed the Minister of Trade, Market and Levels of competition, or perhaps the NLC along side its board, to discover results in to fund devoid of initially requiring an software. This was stopped every time a new NLC board was appointed.

R2-billion in grants beneath investigation
SIU head Advocate Andy Mothibi said the SIU was at this time investigating grants valued at in excess of R2-billion, along with the unit was however routinely obtaining tip-offs about extra corruption.

He informed MPs 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 next, also concluded, associated R247-million. During the 3rd period, as a result of be finalised at the end of the yr, the SIU is investigating grants valued at Practically R906-million, involving 40 NPOs and NPCs, Mothibi stated.

He mentioned that the SIU would utilize “quickly” for the Presidential Proclamation, initially granted in Oct 2020 to investigate corruption involving lottery grants, to be prolonged to incorporate procurement through the NLC.

The SIU investigation experienced up to now brought about thirteen disciplinary referrals towards the NLC, and administrative referrals to SARS and the Companies and Intellectual Houses Fee to blacklist people today implicated inside the looting. Issues involving two people had been referred towards the Legal Apply Council along with the SA Institute of Chartered Accountants.

The SIU had noticed several trends under the past NLC board and govt - most of whom happen to be implicated in looting - Mothibi told MPs.

This included a “craze of collusion between NLC officials and NPOs and NPCs”, “the hijacking of NPOs and NPCs” and “general maladministration inside the acceptance of grants,” he claimed.

Slow progress because of the NPA
The SIU has frozen houses, Attributes, cars and trucks together with other assets value tens of hundreds of thousands that were acquired with lottery resources, but MPs expressed problem at sluggish development in prosecuting All those involved in the looting. (The SIU is mandated only to Get well property purchased with stolen condition money and does not have prosecuting powers).

When the SIU has referred fifteen issues into the NPA, so far only two people have been introduced just before a court. Two Gentlemen appeared in courtroom in Kimberley just lately in connection with misappropriated resources gathered for the task to fight gender-based violence.

In August 2022 Christopher Tshivule was sentenced to 8 years in prison for his component inside of a R1.5-million lottery grant fraud. Rates in opposition to two individuals charged with him, who the SIU has called “kingpins” within the corruption that overcome the NLC, were dropped.

Key-Common Mmeli Makinyane, the acting divisional commissioner for priority offences, instructed MPs that the Hawks had been currently investigating sixteen lottery corruption-connected circumstances. A further a person - the Kimberley matter - is prior to a court and two are already sent for the NPA for a decision to prosecute. An extra five situations are now being investigated with the SAPS detective and forensic products and services, he claimed.

Outlining the reasons with the delay in prosecutions, NPA Deputy Countrywide Director Rodney de Kock said Component of The explanation was which the Hawks needed to do more investigations every time they received dossiers through the SIU.

“In essence, the investigations carried out from the SIU usually do not fulfill prison standards for prosecutions.”

Thus, the NPA experienced to work with investigators within the DPCI (the Hawks) and SAPS to perform legal investigations and be sure that the evidence satisfies legal prosecution specifications, he stated, introducing: “That said, the function from the SIU is important and contributes drastically to this method.”

De Kock claimed that the SIU’s investigation “normally results in a number of referrals. The referrals may in the long run result in just one docket and one particular courtroom circumstance.”

He stated that 12 matters, which might be “somewhere around eighty five% entire”, were being remaining jointly investigated via the Hawks as well as SIU’s Specialised Financial Operations Device. (A large number of conditions, seven of which were being lodged in 2020, entail former NLC Main operating officer Phillemon Letwaba, who resigned underneath a cloud in 2022, and Pretoria attorney Leslie Ramulifho.)

De Kock reported the NPA faced numerous “troubles” in prosecuting circumstances. These, he reported, integrated

the lapse of time involving when the offences have been dedicated plus the issuing of your Presidential Proclamation on 1 November 2020;
“unavailability of witnesses and/or documentary evidence” (Earlier this year, the SIU advised the committee that essential paperwork essential in a few prosecutions had been deleted from the NLC computer procedure or experienced gone lacking from Metrofile, a warehouse where by copies of paperwork are archived and stored);
The truth that some implicated folks remain utilized by NLC; and
A obstacle for the legality from the Presidential Proclamation by previous NLC chairperson Alfred Nevhutanda.
“The NPA is dedicated to making certain finalisation in these issues. To this end, a staff of dedicated prosecutors has actually been allotted to supervise all NLC issues presently underneath investigation,” de Kock reported. “Issues are taken care of as being a priority. As soon as [the] investigations are completed, the NPA will make a call.”

What the businesses say (or don’t)
GroundUp was only ready to get remark from on the list of 5 firms accused because of the SIU in Parliament of producing fraudulent once-a-year fiscal statements,TTP Consulting.

Aubrey Moeng, certainly one of TTP’s two administrators, mentioned within an email in response to issues: “On account of shopper confidentiality, we want to suggest that TTP Consulting is not really willing to disclose customers’ fiscal private information and facts with the general public or media … with no consent of your shopper or a lawful rationale.”

The company is a “companion” of several point out entities, together with SARS as well as CIPC, In keeping with its Web page.

Neither of the two administrators of Dzata Accountants, that are each mentioned as inactive to the CIPC register of providers, responded to emailed inquiries. The company has become deregistered by the CIPC for failing to submit economical statements given that 2021.

The only director of Mageba Ntuli Investing and Consulting Service, Patrick Zulu, died a few many years ago, In accordance with official records. The organization was deregistered with the CIPC for failing to submit economic statements considering that 2021.

Matamela Magodi, the only director of Magodi Consultants, did not reply to thoughts emailed to him.

GroundUp was struggling to uncover any listing for Tafta Consulting and Accounting Companies Along with the CIPC. We have been also unable to trace any of the corporate’s directors to ask for remark.