Laptops and documents were some of the items seized when the Special Investigating Unit (SIU) and the Hawks pounced into a Kimberly accounting firm in the Northern Cape this week.
The law enforcement agencies raided the firm in search of evidence to assist with the ongoing R1.4 billion investigation involving the National Lotteries Commission (NLC) after a tip-off.
The SIU said the raid came after a whistle-blower, suggesting that certain accounting firms and accountants were allegedly engaged in criminal activities by aiding non-profit organisations (NPO) and non profit companies (NPC) in preparing and producing fraudulent financial statements which were meant to be submitted to the NLC in support of their application for grant funding.
SIU spokesperson Kaizer Kganyago said the unit was granted a search and seizure warrant by the Kimberley Magistrate’s Court.
“The whistle-blower alleged that several NPOs and NPCs submitted fraudulent financial statements to the NLC, which were prepared, produced and signed off by the directors and or representatives of the accountants without any bank statements submitted to the accountants,” Kganyago said.
One of the requirements for NLC grant funding in terms of the Lotteries Act is that an applicant must submit an audited financial statement together with a completed application form.
In 2020, President Cyril Ramaphosa authorised proclamation R32 of 2020 to investigate allegations of corruption and maladministration in the affairs of NLC and the conduct of NLC officials and to recover any financial losses suffered by the State.
Last week, The Star reported that the SIU was well on its way to completing the investigation after Kganyago said the unit had completed 90% of phase two in the investigation.
The unit, through its head Andy Mothibi, were reporting to the portfolio committee on trade and industry in Parliament on the status of its investigation into the NLC.
The investigation consists of three phases, including the first phase which added up to nearly R280 million. while the second phase amounted to nearly R250m.
The third phase, which the SIU is yet to commence, totals about R900m.
However, the SIU said the investigation may have to reach phase four because of this because the brazen looting of funds may need more investigation.
Kganyago said the SIU would refer any evidence pointing to criminal conduct it uncovers during its investigations to the National Prosecuting Authority for further action.
The Star