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An accounting firm in Kimberley was raided in search of evidence to assist with a National Lotteries Commission (NLC) investigation.
During this raid on Wednesday, 21 February, laptops and relevant documents were searched and seized by the Special Investigating Unit (SIU) and the Hawks to assist with the investigation into the affairs of the NLC.
It is the second raid in two years in Kimberley on NLC matters.
Approximately R1,4 billion, which the State and the NLC have allegedly lost due to corruption at the organisation, is under investigation.
The value of phase one is R280 million, phase two R247 million, and for phase three it amounts to R905 million.
The SIU reported on 14 February to parliament that they had completed 90% of the second phase in this three-phase NLC investigation.
On Wednesday, Kaizer Kganyago, SIU spokesperson, said they obtained a search and seizure warrant by the Magistrates’ Court in the Kimberley District.
“The raid follows a tip-off received from a whistleblower suggesting that certain accounting firms and accountants were allegedly engaged in criminal activities by aiding non-profit organisations (NPOs) and non-profit companies (NPCs) in preparing and producing fraudulent financial statements to be submitted to the NLC in support of their application for grant funding.”
One of the requirements for NLC grant funding in terms of the Lotteries Act is that an applicant must submit an audited financial statement with a duly completed application form.
“The whistleblower 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,” he says.
The first raid in Kimberley took place in May 2022 when the SIU and the Hawks obtained an urgent warrant to seize documents, laptops, and computer hard drives.
Kganyago then said the investigation relates to the alleged misuse of funding that NPOs use to uplift communities.
The SIU had been reliably informed by whistleblowers that NLC officials allegedly use the services of middlemen who approach NPOs to apply for money from the NLC.
Once the application is approved and the money is remitted, the middlemen and officials would allegedly claim 30% of the money.
