SIU applies to extend lottery corruption probe

SIU applies to extend lottery corruption probe

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A choice over the Distinctive Investigation Unit’s (SIU) software to amend the 2020 Presidential Proclamation is predicted by the end of February.
The original proclamation only permitted the SIU to research grants created by the Nationwide Lotteries Fee (NLC) concerning one January 2014 and seven November 2020.
The SIU is seeking a mandate to investigate lottery-funded projects that fall outside that interval.
Additionally, it wants to analyze fraud and corruption connected to the NLC’s procurement of expert services, which was not covered ltpbet below the original 2020 proclamation.
The NLC has experienced new administration and board due to the fact 2022 and has long been aiding the SIU with its investigations.
A decision on the applying because of the Specific Investigating Unit (SIU) with the amendment of the 2020 Presidential Proclamation mandating it to investigate corruption involving the Countrywide Lotteries Commission (NLC) and its staff members, is expected by the tip of the month.

This was verified from the Section of Justice’s spokesperson Kgalalelo Masibi. “The inspiration was submitted on the Office late last yr and is also remaining prepared for submission towards the Minister to advocate the authorisation on the amendment on the proclamation. A choice could be anticipated by the end of February 2025,” Masibi told GroundUp.

The first proclamation only permitted the SIU to investigate grants produced by the NLC involving 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 service suppliers, which ran to numerous millions of rand.

In its drive to amend the proclamation, the SIU is searching for a mandate allowing for it to investigate lottery-funded assignments that tumble outside the period lined by the initial proclamation, Considering that the NLC’s corruption ongoing once the proclamation was gazetted.

Even though the SIU couldn’t directly investigate procurement, simply because the original proclamation didn't include it, it seconded two of its officers to your NLC to help it in its investigations into dodgy procurement.

GroundUp has also uncovered that the SIU and also 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 assistance with the SIU’s seconded officials and a number of other damning investigations by unbiased audit organizations, usually means the SIU may have a soar get started inside a probe into procurement If your proclamation is prolonged.

The NLC as well as SIU have also been inundated with tip-offs. Many are from whistleblowers about dodgy grant and provide chain management fraud and corruption, many of which transpired right after November 2020.

The 2020 proclamation incorporates an exception for the SIU to investigate alleged corruption that passed off right before or after the date of its publication …“but is related to, connected with, incidental or ancillary on the matters … or entail exactly the same individuals, entities or contracts”.

The SIU’s drive also seeks a mandate to analyze fraud and corruption involving the NLC’s source chain administration and the procurement of solutions.

The SIU Beforehand instructed GroundUp it was investigating around 700 dodgy task grants, with much more suggestion-offs coming in. Various NLC employees are going through disciplinary rates about their alleged involvement in dodgy procurement. Other folks resigned when they were being billed. The SIU has also reported a lot of Individuals concerned on the police.

In 2022 the SIU advised Parliament’s Trade, Sector and Opposition portfolio committee that it was investigating dodgy lottery grants valued at over R1.four-billion. Final calendar year SIU head Advocate Andy Mothibi instructed the committee that the value of dodgy grants underneath investigation had developed to above R2-billion.

SIU spokesperson Kaizer Kganyago declined to touch upon the appliance to extend the proclamation.

Dodgy procurement
In 2023, the Auditor-General instructed the NLC’s administration to address “crucial inside control deficiencies recognized to further improve procurement and contract management”. This arrived after the Auditor-Standard’s NLC audit in 2021 uncovered greater than R23-million in irregular expenditure and R36-million in accounting problems designed in previous a long time. Points worsened the next 12 months, While using the Auditor-General’s 2022 management report around the NLC revealing practically R57-million in irregular expenditure due to contravention of offer chain management laws.

Amongst the problems flagged in damning reviews from the Auditor-Typical, and by auditors appointed with the NLC, had been irregular expenditure on information and facts know-how and sky-higher paying out on lawyers. The NLC struggled to answer a composed parliamentary problem about its expenditure on lawful expenses, as vital data files with aspects of multimillion-rand litigation expenditure have vanished.

An additional location of concern will be the tens of numerous rand in shelling out on media and communications, by using a disproportionate total paid out for the Sunday Planet newspaper.

Countless rand in dodgy payments were being also manufactured to NLC services suppliers, such as a R498,000 payment to company provider Neo Consulting to research a computer hack that never occurred.

ProEthics, which suggested the NLC on ethics if the organisation was confused by rampant corruption, was also used to launder payments to services companies. The NLC paid ProEthics above R28.4-million. The business, consequently, explained it paid out other provider companies within the NLC’s Guidelines — like a R1.7-million payment for a flash mob that never transpired.

The results of independent investigations commissioned by the NLC’s new board and government happen to be significant in formulating disciplinary costs from implicated workers, including NLC firm secretary Nompumelelo Nene.

Nene is billed with alleged irregularities within the appointments of and payments to various services suppliers. She can also be accused of offering “Phony or incomplete info in submissions justifying deviations from procurement processes”.