Only 28% of lottery funds paid out while board members earn R7.5 million

A reply to a Democratic Alliance (DA) parliamentary question has revealed that despite R8.5 billion being available to the South African Lottery Board for distribution to beneficiaries in the three years from 2007 to 2009, just R2.3 billion (or only 28%) was actually paid out. In stark contrast to this, over the same period, the six board members received a combined remuneration of R7.5 million.

It is quite clear from the reply that, while those individuals on the lottery board receive huge sums of money, the board is fundamentally failing to fulfil its mandate and distribute funds to those in need.

A copy of the full reply follows below.

Among other things the reply shows that:

• In 2007: R2.1 billion was available for distribution but just R792 million (just 37%) was paid out;
• In 2008: R2.9 billion was available but just R634 million (just 22%) was paid out; and
• In 2009: R3.3 billion was available but just R948 million (just 28%) was paid out.

Over the same period, the total amount paid to individual members of the board was as follows:

• 2007: R1.187 million
• 2008: R4.562 million
• 2009: R1.820 million

The six board members are:

• Foster J.A.
• Axten N.
• Fakude-Nkuna N.
• Makgothi H.
• Thomas S.
• Negota G.

I will now be submitting a series of parliamentary questions to the Minister of Trade and Industry to ask what criteria are used by his department to measure the performance of board members and those administrators responsible for ensuring that the Lottery functions properly, which quite clearly it is not doing at the moment. I will also be asking what action will be taken against those board members or administrators who fail to meet those criteria.

It is the responsibility of the board to ensure that the Lottery distributes monies available to it, to those in need. It is quite clearly failing to do this and those responsible for this failing, including the board members, now need to account for this failure and justify the salaries they earn. 

THE NATIONAL ASSEMBLY
QUESTION FOR WRITTEN REPLY

Question 49

Ms S P Kopane (DA) to ask the Minister of Trade and Industry:

(1)In each of the three most recent years for which information is available, how much money was (a) available during the year for distribution to (i) arts, culture and heritage, (ii) charity and (iii) sports organisations and (b) actually paid out by the National Lottery Distribution Trust;

(2)(a) who are the current members of the Board and (b) what amount was paid out (i) in total and (ii) to each board member in each of these years in salaries, stipends or any other specified allowances?

Response:

The details below reflect information for the last three consecutive years. 

1 (a) AVAILABLE (R'000) 

1 (b) PAID (R'000)

2 (a) BOARD MEMBERS

Foster JA

Axten N

Fakude-Nkuna N

Makgothi H

Thomas S

Negota G

2 (b) (i) TOTAL EMOLUMENTS (R'000)

2 (b) (ii) INDIVIDUAL EMOLUMENTS (R'000) 

2007 (R'000)

2008 (R'000)

2009 (R'000)

Statement issued by Kobus Marais MP, Democratic Alliance shadow minister for trade and industry, June 22 2009

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