SIU applies to extend lottery corruption probe

SIU applies to extend lottery corruption probe

Blog Article

A decision over the Particular Investigation Unit’s (SIU) software to amend the 2020 Presidential Proclamation is predicted by the tip of February.
The original proclamation only authorized the SIU to investigate grants created by the Countrywide Lotteries Commission (NLC) involving 1 January 2014 and seven November 2020.
The SIU is trying to find a mandate to investigate lottery-funded tasks that drop exterior that period of time.
It also wants to analyze fraud and corruption associated with the NLC’s procurement of providers, which was not covered fox888 less than the original 2020 proclamation.
The NLC has experienced new administration and board considering the fact that 2022 and has been assisting the SIU with its investigations.
A call on the appliance through the Unique Investigating Device (SIU) for that amendment of the 2020 Presidential Proclamation mandating it to investigate corruption involving the Countrywide Lotteries Commission (NLC) and its workforce, is anticipated by the top in the thirty day period.

This was confirmed with the Department of Justice’s spokesperson Kgalalelo Masibi. “The drive was submitted to the Division late past year and is also remaining prepared for submission for the Minister to advocate the authorisation with the Modification to your proclamation. A call is often predicted by the tip of February 2025,” Masibi advised GroundUp.

The initial proclamation only allowed the SIU to analyze grants created by the NLC among 1 January 2014 and seven November 2020. This still left the SIU hamstrung when investigating fraud and corruption involving the NLC’s procurement of providers and appointment of services vendors, which ran to countless numerous rand.

In its motivation to amend the proclamation, the SIU is trying to find a mandate enabling it to research lottery-funded jobs that fall exterior the interval covered by the original proclamation, Because the NLC’s corruption continued following the proclamation was gazetted.

Although the SIU couldn’t specifically examine procurement, for the reason that the first proclamation didn't involve it, it seconded two of its officers to your NLC to help it in its investigations into dodgy procurement.

GroundUp has also realized that the SIU and the NLC recently signed a new letter of engagement extending the connection among The 2 entities by a yr. Their deal expired at the end of December 2024.

The NLC’s probe, which incorporates the support of the SIU’s seconded officers and several other damning investigations by independent audit corporations, indicates the SIU will likely have a jump commence in a very probe into procurement When the proclamation is extended.

The NLC along with the SIU have also been inundated with suggestion-offs. Many are from whistleblowers about dodgy grant and supply chain management fraud and corruption, a number of which transpired soon after November 2020.

The 2020 proclamation incorporates an exception for that SIU to research alleged corruption that came about just before or after the day of its publication …“but is suitable to, connected with, incidental or ancillary towards the issues … or include exactly the same folks, entities or contracts”.

The SIU’s enthusiasm also seeks a mandate to analyze fraud and corruption involving the NLC’s provide chain administration as well as the procurement of products and services.

The SIU Formerly instructed GroundUp it was investigating above seven hundred dodgy challenge grants, with much more tip-offs coming in. Many NLC team are facing disciplinary costs about their alleged involvement in dodgy procurement. Other folks resigned once they have been charged. The SIU has also reported most of All those included for the police.

In 2022 the SIU explained to Parliament’s Trade, Marketplace and Levels of competition portfolio committee that it had been investigating dodgy lottery grants valued at over R1.4-billion. Last 12 months SIU head Advocate Andy Mothibi told the committee that the worth of dodgy grants less than investigation had developed to over R2-billion.

SIU spokesperson Kaizer Kganyago declined to comment on the appliance to increase the proclamation.

Dodgy procurement
In 2023, the Auditor-Common instructed the NLC’s management to handle “significant interior Manage deficiencies recognized to boost procurement and agreement administration”. This came following the Auditor-Basic’s NLC audit in 2021 uncovered in excess of R23-million in irregular expenditure and R36-million in accounting glitches designed in past yrs. Factors worsened the next year, Using the Auditor-Typical’s 2022 administration report around the NLC revealing nearly R57-million in irregular expenditure mainly because of the contravention of offer chain administration legislation.

Between the issues flagged in damning studies by the Auditor-Normal, and by auditors appointed from the NLC, have been irregular expenditure on information technological innovation and sky-superior investing on lawyers. The NLC struggled to answer a composed parliamentary concern about its expenditure on authorized expenses, as critical documents with facts of multimillion-rand litigation expenditure have vanished.

A different place of worry would be the tens of numerous rand in paying on media and communications, having a disproportionate amount of money paid out towards the Sunday Environment newspaper.

An incredible number of rand in dodgy payments were also designed to NLC support suppliers, such as a R498,000 payment to assistance provider Neo Consulting to investigate a computer hack that under no circumstances transpired.

ProEthics, which advised the NLC on ethics when the organisation was overwhelmed by rampant corruption, was also used to launder payments to support companies. The NLC paid out ProEthics above R28.4-million. The business, in turn, stated it paid other service vendors to the NLC’s Recommendations — like a R1.7-million payment for just a flash mob that under no circumstances occurred.

The conclusions of independent investigations commissioned by the NLC’s new board and government have been significant in formulating disciplinary costs from implicated employees, which include NLC business secretary Nompumelelo Nene.

Nene is charged with alleged irregularities from the appointments of and payments to several support companies. She is likewise accused of furnishing “false or incomplete info in submissions justifying deviations from procurement processes”.