SIU flags lawyers, auditors in Lottery corruption
The Special Investigating Unit has uncovered a widening network of corruption in its ongoing probe into the National Lotteries Commission, implicating not only government departments but also audit firms, legal practices, estate agents, and non-profit organisations (NPOs) in potentially facilitating money laundering and maladministration.
SIU head Advocate Andy Mothibi made the revelations during a seminar hosted by the Institute for Security Studies (ISS) on Wednesday, warning that traditionally trusted professions are increasingly being used to disguise and channel illicit funds.
"In the lottery investigation that we are busy with, we found that the auditors, the audit firms played a role. The lawyers, the law firms play a role either in facilitating and/or in what could result in money laundering."
He added that estate agents and NPOs were also being used to move funds under the guise of legitimate transactions.
READ MORE: SIU freezes luxury property linked to misuse of lottery fund
"Estate agents are used when the houses are bought… and they really get to be part of this. The NPOs are a vulnerable sector that is abused. We’ve spoken to social development and so on."
The SIU is currently working with global oversight bodies such as the Financial Action Task Force (FATF) to improve South Africa’s tracking of illicit financial flows and to ensure that local regulators across sectors play an active role in prevention.
'We believe that the regulators in the country really will play a big role, because we do find that there are other vulnerable areas… actively participating, facilitating corruption, maladministration and so on," Mothibi said.
Disciplinary gaps undermining anti-corruption impact
While the SIU continues to expose intricate corruption schemes, ISS researcher David Bruce said the government’s inability to enforce consistent internal discipline is severely weakening the unit’s overall impact.
"People who are implicated in corruption should not be permitted to continue working for the government."
He warned that even after public servants are implicated in investigations, many remain in their posts or are quietly moved to other departments — a consequence of the state’s fragmented and often inactive disciplinary processes.
"Currently, the evidence is that we don’t have that… people just stay in the system, or they lose one job and go into another. That is currently a serious constraint on the impact of the SIU."
Bruce argued that well-run internal disciplinary systems could yield more immediate and lasting accountability than even criminal prosecutions, which often take years and depend on stretched prosecutorial and police resources.
"I think the most useful and valuable thing that could be achieved… is if disciplinary measures could be implemented on a consistent basis. These would be fair processes, but people wouldn’t be permitted to continue working for the criminal justice system or government."
ALSO READ:
