SIU, Hawks raid Kimberley law firm

The Special Investigating Unit (SIU), together with the Hawks, have conducted a raid on a Kimberley based accounting firm allegedly related to corruption at the National Lotteries Commission.

The raid comes in the wake of a deep SIU investigation delving into incidents of alleged rampant corruption and maladministration, which is said to have cost the commission at least R1.4 billion.

“The raid follows a tip-off received from a whistle blower 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 which are meant 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 together with a duly completed application form.

“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,” the SIU said in a statement.

The search resulted in the seizure of laptops and documentation.

“In line with the Special Investigating Units and Special Tribunals Act 74 of 1996 (SIU Act), the SIU will refer any evidence pointing to criminal conduct it uncovers during its investigations to the National Prosecuting Authority (NPA) for further action.

“The SIU is empowered by the SIU Act to institute civil action in the High Court or a Special Tribunal in its name to correct any wrongdoing uncovered during its investigation caused by acts of corruption, fraud, or maladministration,” the statement concluded. – SAnews.gov.za