DA considers criminal charge against Lotto official
A reply to a Democratic Alliance (DA) parliamentary question shows that the National Lotto, in probable contravention of the law, has paid out a total of R15.5m to the Jazz Foundation of South Africa, even though the CEO of the Foundation - Mr Leabua (Oupa) Salemane - is also a member of the Lotto's Arts and Culture Distributing Agency (which considers and approves applications for grants).
A copy of the reply follows below.
When there are so many deserving NGOs desperately needing funding from the Lotto, there is no space for cronyism. The DA will be asking more specific questions about this grant and the circumstances surrounding it, and if no action is taken we will consider laying charges against Mr Salemane in terms of the Public Service Act ourselves.
The Public Service Act states that "No employee shall perform or engage himself or herself to perform remunerative work outside his or her employment in the relevant department, except with the written permission of the executive authority of the department".
The reply we received makes no reference to written permission for Mr Salemane's dual role having been obtained. If such permission has been granted, it should never have been done - there is a clear conflict of interest here - and should be grounds for another investigation.
The Jazz Foundation has made four separate applications for funding over an undisclosed period. In its first application it received a negligible amount of R20 000, but its most recent application netted a massive R15.05m (although only R11.3m has been paid).
At the same time the DA continues to be inundated by queries from charities and NGOs who are struggling to obtain payouts from the Lotto.
Question 333
Mrs S P Kopane (DA) to ask the Minister of Trade and Industry:
(1) Whether any grant applications by the Jazz Foundation to the National Lottery Distribution Trust Fund were (a) accepted and (b) paid out; if not, why not, in each case; if so, what amounts in each case;
(2) Whether any of the members of the Jazz Foundation have links to the NLDTF; if so, what are the relevant details?
(3) Whether the Jazz Foundation meets all the requirements for acceptance as a potential beneficiary of Lotto funds; if not, what is the position in this regard? NW392E
Response:
(1)(a) Yes, the Arts, Culture and National Heritage Distributing Agency accepted and paid out grant applications to the Jazz Foundation.
(1)(b) The amounts paid out to the Jazz Foundation in each case are as follows:
|
Application number |
Grant amount (R) |
Balance remaining (R) |
|
#3820 |
R20,000.00 paid in full |
0 |
|
#13232 |
R1,05 million paid in full |
0 |
|
#13244 |
R710,000.00 paid in full |
0 |
|
#16894 |
R2,25 million paid in full |
0 |
|
#21626 |
Only R11,3 million paid out |
The balance of R3,75 million is being withheld by the NLB on the basis that the project has already been completed |
(2) The National Lottery Distribution Trust Fund (NLDTF) is a fund that is administered by the National Lotteries Board and as such, no member of the Jazz Foundation has any links with the NLDTF. However, Mr Leabua (Oupa) Salemane, a member of the Arts, Culture and National Heritage Distributing Agency, is also the CEO of the Jazz Foundation of SA. Although the Arts, Culture and National Heritage Distribution Agency is responsible for adjudicating applications in this area, the dti has been advised that proper governance controls were applied in that Mr Salemane was not part of the decision making process relating to the grants to the Jazz Foundation.
(3) Calls for applications are issued with specific requirements that state the requirements for grant applications. In this case the distribution agency (Arts, Culture and National Heritage Distributing Agency) assessed and adjudicated on this application and found that it met the requirements.
Statement by Patricia Kopane MP, Democratic Alliance shadow minister of social development, July 22 2009
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