DA and the United Civil Society in Action (UCSA) are worried about corruption at the National Lotteries Commission following new allegations of mal-administration. Photo: Raymond Joseph/GroundUp
The United Civil Society in Action Movement (UCSA) has launched a rallying cry for South Africans to confront what they describe as “tainted lottery licensing processes” and increasing corruption within the National Lotteries Commission (NLC).
This appeal follows shocking disclosures about serious financial irregularities and poor management at the NLC, which oversees monies meant for the general public’s benefit.
Recent media reports indicate that the NLC has spent an astonishing R70 million on legal fees to defend multiple staff disciplinary actions from 2019 to 2023.
Under the current board’s governance, the commission has reportedly litigated against staff members accused of abusing their positions and misdirecting lottery funds.
These actions have raised eyebrows and questioned the integrity of an organisation designed to uphold fairness and transparency in funding for community upliftment.
The Democratic Alliance (DA) has vowed to take action in response to the allegations.
Toby Chance, the party's spokesperson on Trade, Industry, and Competition, stated that an interrogation of law enforcement agencies and the National Lotteries Commission board will take place during the Trade, Industry and Competition Portfolio Committee meeting scheduled for November 5.
“We will ensure that the full extent of corruption at the NLC is uncovered,” Chance asserted, underscoring the importance of addressing the situation head-on.
Chance revealed that the DA uncovered worrisome information through a written reply from the Minister of Trade, Industry, and Competition, Parks Tau.
The report documents 50 instances where the NLC disputed rulings from the Labour Court, including defending staff dismissals and litigation against employees involved in disciplinary matters.
“If it becomes evident that whistleblowers have faced a miscarriage of justice, the DA will explore compensation avenues for those individuals,” he added.
Tebogo Sithathu, chairperson of UCSA, emphasised the role of traditional leaders as rightful beneficiaries of the NLC funds.
“Traditional leaders are the custodians of the land and its resources, and must be actively involved in distributing funds from the NLC,” Sithathu declared.
Furthermore, he also implored Minister Tau to rectify profound governance failures, irregular appointments, and breaches of fiduciary duty plaguing the NLC.
Sithathu’s concerns extend to the alleged illegality in appointing NLC’s board and commissioner through a manipulated and opaque process, violating the Lotteries Act, the Public Finance Management Act (PFMA), and Companies Act.
He highlighted the shocking report of an unlawful transfer of R300 million to the National Treasury without proper approval, alongside a misallocation of grant funding to “pet projects”. These actions, he warns, represent systemic violations of financial governance.
Furthermore, Sithathu pointed to the NLC’s failure to comply with statutory obligations, including shortcomings in submitting audits per PFMA regulations and addressing potential conflicts of interest among board members.
“The NLC has accrued wasteful, fruitless, and unjustified expenditures, having spent well over R70 million on internal investigations without achieving any tangible results,” he expressed, lamenting the lost opportunities for disadvantaged communities that could have benefited from the funds.
“While we support the fight against corruption, such extravagant spending comes at the expense of poor Black communities desperately in need of this funding. The NLC appears to have devolved into a ‘slush fund’ for certain individuals, and that must be stopped,” Sithathu said.
The Star
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