The National Lottery Commission (NLC) has over the years not covered itself in glory, plagued by corruption on an industrial scale. Funds meant to help impoverished communities, invest in the arts and help drug addicts have often been diverted to fund expensive overseas trips, luxury cars and mansions in SA’s top suburbs and estates.
It is concerning that the NLC, with its history is presiding over the adjudication of the fourth national lottery licence — with allegations of impropriety already emerging. While the law grants it the power to do so, its history demands that it plays open cards on the criteria used to select the eventual preferred bidder.
It is imperative for trade, industry & competition minister Parks Tau to ensure the process is not tainted, even if it means going against his comrades and companies linked to his political party, the ANC, which have bid for the lucrative tender.
The promise and appeal of the government of national unity is its commitment to the rule of law and clean governance. These must be so in word and deed. Beyond the highly contested national lottery, much work needs to be done to restore good governance at the NLC, so it fulfils its noble calling — to be a force of good in society.
The organisation distributes more than R1.5bn to supposedly good causes every year. But as its run-ins with the Special Investigating Unit suggest, most of this money ends up lining the pockets of the politically connected.
SA’s NGO sector looks to the NLC for funding, to fix real social ills in society. A thriving and well-funded NGO sector can go a long way in healing the hurt and destruction in many neglected communities in the country. One just has to look at the sterling work in many parts of the country by an NGO such as Gift of the Givers Foundation, to see what a well-functioning NGO can achieve.
The country needs more organisations such as the Gift of the Givers and the NLC is uniquely positioned to play a decisive role in this sector. The future Olympians of this country have to be funded by the NLC, to avoid embarrassing tales of Olympians and their families carrying a financial burden to prepare for the showpiece event.
The Covid-19 pandemic provided a classic example of the critical role of the sector. Between the 2019/20 and 2022/23 financial years, a total of 69,484 NGOs across the country were funded by the department of social development to the tune of R7bn. The gap in funding, means the NLC is a key cog in the sector, with its funding reaching beyond the realm of social development.
The NLC and its governance can no longer be an afterthought. Tau, who has hit the ground running since his appointment as minister in June, attracting plaudits from the private sector, must prioritise repurposing the NLC to its original mandate.
Closer scrutiny must also be placed on the NGO sector, which has been found to be one of the most preferred vehicles to launder money. For that to happen you need an ethical and upright NLC. The tender process must also be able to pick the best possible bid so as to maximise payments made by the operator to the NLC.
The ball is squarely in Tau’s court to ensure the NLC is corruption free and able to help in efforts to heal a broken society.
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