THE Special Investigating Unit (SIU) and the Directorate for Priority Crimes Investigation, commonly known as the Hawks, on Wednesday, 21 February, raided an accounting firm in Kimberley, Northern Cape, in search of evidence to assist with the National Lotteries Commission (NLC) investigation.
According to SIU spokesman Kaizer Kganyago, they were granted a search-and-seizure warrant by a magistrate court.
He said the raid follows a tip-off received from a whistleblower suggesting that certain accounting firms and accountants were allegedly engaged in criminal activities and helping non-profit organisations (NPO) and non-profit companies (NPC) in preparing and producing fraudulent financial statements which are meant to be submitted to the NLC in support of their application for grant funding.
Kganyago said one of the requirements for NLC grant funding in terms of the Lotteries Act was that an applicant must submit an audited financial statement together "with a duly completed application form".
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“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,” he said.
During the raid, Kganyago said law enforcement agencies searched and seized laptops and relevant documents to assist with the SIU’s investigation into the affairs of the NLC, which is estimated to be approximately R1.4 billion.
He said the SIU was, in terms of Proclamation R32 of 2020, authorised by President Cyril Ramaphosa, to investigate allegations of corruption and maladministration in the affairs of the NLC and the conduct of NLC officials and to recover any financial losses suffered by the State.
