National Lotteries Commission corruption cases must be finalised for its recovery to begin

24 November 2024

After years of corruption, the NLC is presented with the opportunity to start anew. In response to Parliamentary Questions, Minister of Trade, Industry and Competition, Parks Tau, provided an update on the clean-up project within the NLC. The NLC has been under investigation for several years by the SIU, NPA and Directorate for Priority Crime Investigation (the Hawks).

The Hawks is investigating up to R15 billion of corrupt lottery grants, while the SIU’s investigations involve approximately R2 billion.

Worryingly, the NPA’s Asset Forfeiture Unit has recovered only R9,5 million of cash and preserved (or frozen) only R94,3 million worth of assets as the proceeds of corrupt activities. While the NPA says it is 85% of the way to finalising decisions on whether to prosecute cases, it has still yet to bring cases to the SIU Special Tribunal.

Since 2020, the SIU has finalised 2 of its 3 phases totalling R525 million and expects to finalise the 3rd phase totalling R905 million by 31st December 2024. The SIU is also contemplating extending the investigation into a 4th phase which would include procurement irregularities in addition to corrupt grant funding. This would significantly broaden the investigation scope and undoubtedly uncover more millions of rands of corruption.

The SIU has also been under attack by former officials, including corruption-accused former NLC chair Professor Nevhutanda, who is contesting the President's SIU proclamation.

The NLC must now implement a massive modernisation project to start anew. This includes building systems to detect fraud in applications, monitoring and evaluation processes and collaboration with other Government to link their databases to identify probably corruption before grants are approved.

We call upon the law enforcement agencies to double down on their commitment to bring those accused of corrupt practices to justice without delay, enabling the NLC to begin a new chapter to the benefit of thousands.

Issued by Toby Chance, DA Spokesperson on Trade, Industry & Competition, 24 November 2024