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Nine lottery whistle-blowers to share R20m in reparations

Trade, industry & competition minister Parks Tau. Picture: DTIC
Trade, industry & competition minister Parks Tau. Picture: DTIC

The National Lotteries Commission (NLC) has set aside R20m to pay reparations to nine whistle-blowers who reported the deep corruption that plagued the organisation. 

Members of staff were punished or driven out of their jobs for blowing the whistle on corruption and NLC commissioner Jodie Scholtz, who met with the victims, described their experiences as “heart-wrenching”, noting that their lives were “turned upside down” due to their dismissals. 

Trade, industry & competition minister Parks Tau said in a written reply to a parliamentary question by MK MP Des van Rooyen that the funds would come from the National Lotteries Distribution Trust Fund. The names of the beneficiaries would not be made public. 

DA spokesperson on trade, industry & competition Toby Chance said that if the R20m was divided by the nine claimants, it amounted to about R2.2m each.

“This seems like a lot but bear in mind that some of these individuals lost their primary source of income, spent large sums on legal fees and were unable to find gainful employment since blowing the whistle, so their financial situation might only be partially improved with these reparations. 

“There are also non-financial reparations of equal importance to the future prospects of the claimants — including a written acknowledgment by the NLC of their wrongdoing, an apology and work references enabling the claimants to apply for jobs to earn an income.” 

Chance said it was important that the reparations process be replicated by the department of trade, industry & competition and other government entities that were dealing with whistle-blowers, including the SA Bureau of Standards, which is the subject of an investigation and where whistle-blowers had been suspended or dismissed from their jobs and had incurred legal costs to defend themselves. 

The justice department is busy working on a whistle-blower law set in motion by former justice minister Ronald Lamola in 2023. 

Whistle-blowers, who are crucial for exposing corruption, have complained that they have not been given adequate protection and support and that their professional lives suffer as a result of raising their voices about malfeasance. 

Justice & constitutional development minister Mmamoloko Kubayi is continuing with developing the proposed legislation on whistle-blowers.

Ministerial spokesperson Terrence Manase said the minister was committed to strengthening whistle-blower protections in line with the statement by President Cyril Ramaphosa that a whistle-blower protection bill would be introduced in parliament in 2025/2026. 

Manase said the department had undertaken a benchmarking exercise to evaluate global best practices in whistle-blower protection. The findings highlighted clear gaps in SA’s existing framework. 

“To address these, the department is currently finalising a comprehensive whistle-blower protection framework aimed at closing those gaps. This initiative recognises the vital role whistle-blowers play in exposing corruption and promoting transparency.

“The new framework is intended to guide the whistle-blower protection programme and ensure stronger safeguards for their safety. It will also serve as the foundation for the whistle-blower protection bill.” 

Kubayi said in a written reply to another question in parliament that she was weighing up the pros and cons of incentivising whistle-blowers.

ensorl@businesslive.co.za

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