NLC looks to reinstate its credibility

The National Lotteries Commission (NLC) this week briefed the Department of Trade, Industry and Competition portfolio committee, on the status quo of the body.

The commission confirmed that as of August this year, it received resignation letters from the Commissioner, Thabang Mampane, COO Phillemon Letwaba and CFO Xotile Ntuli.

The commission confirmed that all Executive level vacancies have been advertised.

The NLC also said that critical policies are in the process of being reviewed and aligned.

So far, the third national lottery licence has been extended until May 2025 to ensure continuity and sustainability; that preparations were underway for the appointment of the Fourth (4th) National Lottery Operator and the Board is committed to restoring and strengthening the relationship with the shareholder.

The commission reiterated its intention to reinstate the NLC to its core mandate, and restore its credibility.

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This comes after the Special Investigating Unit (SIU) obtained a preservation order from the Special Tribunal to freeze pension benefits of Letwaba last week.

The Special Tribunal order, dated 16 September, interdicts the Liberty Group — the pension administrator — from paying out pension benefits to the value of approximately R2.8 million, pending the final determination of an application to be brought by the SIU against Letwaba within 60 days.

Former COO’s alleged fraudulent dealings

According to the SA government website, an investigation by the SIU in the affairs of NLC had revealed that Letwaba allegedly benefited personally from monies received by NPOs from the NLC.

The SIU investigation revealed that Letwaba allegedly used friends and family businesses, and Trusts to receive money from NPOs for his benefit and that of his family.

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In one of several NLC-funded projects investigated by the SIU, it was revealed that a Limpopo Province-based NPO received approximately R25 million for the refurbishment of a torched school in Vuwani.

Twelve days after the NPO received money, it allegedly transferred approximately R4 million to Unbrand Properties without evidence of work being done and in violation of the funding agreement.

The SIU was thereby authorised by President Cyril Ramaphosa to investigate allegations of corruption and maladministration in the affairs of NLC and the conduct of NLC officials, and to recover any financial losses suffered by the State.

At a crossroads

In a statement, the NLC said: “It is fair to state that the NLC finds itself at a crossroads. This flagship philanthropic project, that should be the pride of our country, has been buffeted by crosswinds.”

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The NLC reported the following findings from the SKX and SIU investigation into the commission:

A high level of fraud with respect to grant funding – especially proactive funding; a culture of secrecy and intimidation; high levels of irregular expenditure and a culture of non-compliance, as well as no consequences for irregular conducts from management officials.