DTI investigation into NLB abuses: More needs to be done
The Department of Trade and Industry has announced an independent investigation into the questionable grants made by the National Lotteries Board (NLB). The NLB itself has also launched a whistle blower hotline to help people report misuse of NLB funds. These are welcome developments, but much more needs to be done.
The Democratic Alliance (DA) is therefore pushing for fundamental overhauls of the NLB during the ongoing Gambling Review process that is being conducted by the Portfolio Committee on Trade and Industry. The Gambling Review will propose reforms for the gambling industry - including the Lotto and the NLB. The Committee is likely to finalise its findings in the next few weeks.
The problems at the NLB will only be solved if the necessary structural changes are made. The DA has proposed a suite of overhauls. These include:
- Depoliticising the appointment process
- Introducing new management
- Appointing NGO experts to the NLB
- Modernising the application process
- Increasing the transparency of NLB processes
The DTI investigation is set to focus on the NLB's R64.1 million grant to Makhaya Arts and Craft, a foreign-based NGO that employs the NLB chairperson's daughter. That case needs to be sorted out, but unfortunately there are also other questionable grants that need to be investigated, like the R1 million the NLB gave to COSATU and the R41 million the NLB gave to the National Youth Development Agency. We trust that the Public Protector will investigate those cases that the DTI has overlooked.
The DA will do everything possible to ensure that the NLB starts to work for the poor again. The money received from the lottery needs to be given to entities that are able to improve the lives of ordinary South Africans. We will make use of the ongoing Gambling Review to push for the reform of the NLB.
Statement issued by Geordin Hill-Lewis, DA Shadow Deputy Minister of Trade and Industry, March 1 2012
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