The Portfolio Committee on Trade, Industry and Competition heard that five professional auditing firms assisted in stealing funds from the National Lotteries Commission (NLC).
The committee is currently receiving briefings from law enforcement agencies on what happened at the NLC. The Special Investigative Unit (SIU) informed the committee that it has identified five firms as enablers to the rot at the commission:
- Thuphe Trading and Projects
- Dzata Accountants
- Magodi Consulting
- Mageba Ntuli Consulting
- TAFTA Consulting
“Requirements when applying for grant funding is that an entity provides financial statements not dating back longer than two years,” SIU Acting Chief National Investigations Officer, Ms Zodwa Xesibe, had said.
The Head of the SIU, Adv Andy Mothibi, explained to the committee that not-for-profit companies and non-profit organisations are encouraged to apply for funding (by other NLC officials or the accounting firms) with an ulterior motive in mind. “The system is designed in a matter that is difficult to detect corruption. There is abuse of inadequate project management at the NLC. Projects are indicated to be done [when nothing has been done] and are not followed up,” he said.
The Chairperson of the committee, Mr Mzwandile Masina, had earlier indicated that the committee was not a court of law, and that entities did not need to give minute details. “That is not the purpose of this meeting; details and evidence should be presented in court. The committee wants to hear that you’ve done investigations, and so many cases [have been] registered and what was being done about them,” he said.
Mr Masina said the committee’s oversight was about accountability and ensuring that accountability is enforced against those who plundered the resources of the state.
Various measures have been taken against those involved in the alleged wrongdoing, including working with the Asset Forfeiture Unit to obtain preservation orders, preserving assets belonging to some of those involved, and freezing their bank accounts.
Adv Mothibi said as a recommendation that an effective and integrated system that can easily detect corruption is needed.
Other entities involved in the matter will brief the committee during the course of the morning.
Sibongile Maputi
21 November 2024
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