In response to a question posed by the Democratic Alliance (DA), the Minister of Trade and Industry, Dr Rob Davies, has indicated that less than half of the funds allocated to sports organisations were disbursed for the 2007/08 and 2008/09 financial years.
The reply by the minister is included below the press statement.
This is yet another example of the chronic problems facing the lotto. While they have no problems collecting money, they seem unable to put systems in place that allow it to be distributed efficiently.
The DA is deeply concerned for the development and wellbeing of our various sporting codes if they have only been able to utilise half of the R596,6 million allocated for 2009. This follows an additional lack of funds released in 2008, when again, only half of the allocated R422,4 million was disbursed.
The Minister of Trade and Industry reports that "not all the funds allocated have been paid since the majority of the grants are allocated in multiple payments and over multiple years". The DA questions this excuse, and why an annual budget is not used in the traditional sense of an annual budget, and why, for two consecutive years, exactly half of the allocated funds were released.
The DA is aware of several sporting bodies in desperate need of funds, and cannot wait for bureaucracy and service backlogs to be addressed by the Department of Trade and Industry.
The DA will be submitting questions to the Minister of Trade and Industry, Dr Rob Davies, asking how the Department plans to address this lack of utilisation and speed up the process by which sporting bodies can make use of these funds, when it plans to address this, and will be requesting more details about the allocation of funds for a financial year, disbursed by means of "multiple payments and over multiple years."
THE NATIONAL ASSEMBLY
QUESTION FOR WRITTEN REPLY
Question 638
Mr T D Lee (DA) to ask the Minister of Trade and Industry:
Whether all the money that have been allocated by the National Lotteries Distribution Fund for distribution (a) in (i) 2007 and (ii) 2008 and (b) during the period 1 January 2009 up to the latest specified date for which information is available, have been distributed to sport organisations; if not, why not; if so, what are the relevant details with regard to the amount awarded to each specified organisation? NW724E
Response:
Not all the funds allocated have been paid since the majority of the grants are allocated in multiple payments and over multiple years. Subsequent payment of grants is only made on receipt of a satisfactory Progress Report from the beneficiary.
(a) Funds allocated to Sports organisations in:
2007 R117,7 million
2008 R422,4 million
2009 R596,6 million
(b) Funds disbursed to Sports organisations in:
2007 R291,8 million
2008 R211,2 million
2009 R298,3 million
The NLDTF has in place criteria for assessing applications and awarding of grants to sport organisations. This criteria is also used when making calls for grant money applications.
The Department of Trade and Industry, the Distribution Agencies and the National Lotteries Board have embarked on a process to improve efficiencies in the grant making process to disburse as much money available in each allocation.
Statement issued by Donald Lee, MP, Democratic Alliance shadow minister of sport and recreation, August 26 2009
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