NLC spends over R8 million on suspended employees facing disciplinary action

The National Lotteries Commission (NLC) has paid at least R8.3 million in salaries to suspended employees currently facing disciplinary action.

This was disclosed by Trade, Industry, and Competition Minister Parks Tau in a recent parliamentary response.

Tau revealed that the NLC is managing seven disciplinary cases, including one involving a senior manager, following findings in the Special Investigating Unit (SIU) and other forensic reports on fraud and corruption.

Six of the seven implicated employees are on precautionary suspension with full pay.

The seventh, a monitoring and evaluation specialist based at the NLC’s Eastern Cape office, is not suspended but is under disciplinary review.

NLC precautionary suspensions

According to the reply, the NLC has incurred a total of R8 396 888 in salary costs for six employees placed on precautionary suspension.

The NLC’s company secretary, based at its head office, was suspended in November 2022, with hearings beginning in March 2023.

Their salary since suspension has amounted to R4.9 million (R4 997 002).

The NLC’s legal manager, suspended in October 2023, began disciplinary hearings in February 2024 and has received R1.5 million (R1 570 500) during the suspension period.

A client liaison officer in the NLC’s Limpopo office was suspended in April 2024, with disciplinary proceedings starting in May 2024, and has received R348 522 to date.

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In the Free State, a provincial manager was suspended in July 2024, with hearings commencing in October 2024.

Their salary cost during suspension has been R649 258.

An assistant manager at the Free State office, also suspended in July 2024, began disciplinary hearings in October 2024, receiving R509 373 in total.

Additionally, a monitoring and evaluation specialist from the Free State office was suspended in July 2024, with hearings set to start on 7 November 2024.

The cost of their suspension stands at R322 233.

NLC officials resign

Tau stated that since the NLC adopted a “zero-tolerance approach” to fraud and corruption, several officials have been placed on precautionary suspension.

“There were 14 cases emanating from SIU referrals. Of the 14 employees, five cases are continuing and the remainder have resigned before the DCs were concluded.

“The current five cases include three referrals received from the SIU in July 2024,” he explained.

The minister indicated that, of the 34 employees flagged for disciplinary action in forensic reports preceding the new NLC board and commissioner, 16 have resigned and one was medically boarded.

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This included those referred by the SIU.

“In instances where the officials are part of the presidential proclamation and SIU investigations, officials will be prosecuted.

“In other cases of fraud and corruption, criminal cases will be opened and where applicable, funds recovered,” he continued.

Tau further revealed that two officials were fired. However, both are appealing their dismissals.

“Five precautionary suspension cases are still in the process and seven individuals have resigned.”

Criminal cases

The NLC has also filed two criminal cases at the Sunnyside Police Station in Pretoria concerning a R9 million grant to Motheo Sports and Entertainment Foundation to construct a sports complex in Soweto.

However, despite at least R6 million already being disbursed, no progress was made on the project as of April 2023, according to GroundUp.

NLC grant applications backlog

In a separate response, Tau disclosed that a backlog of over 3,000 grant funding applications from the 2023/2024 financial year remains unresolved.

This backlog was due to staff shortages within the NLC’s Distributing Agency, which is responsible for evaluating and recommending funding for “worthy good causes”.

While the agency typically consists of up to 12 members, currently only four members are in place.

The NLC advertised the vacancies in September 2024, with applications closing on 4 October 2024.

Tau confirmed that the appointment of new members will be prioritised, with finalisations expected by the end of December.

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As of 10 October, 3 010 out of 5 303 grant applications are still awaiting adjudication.

“Based on the current rate of adjudication and if the capacity of the DA remains unchanged, we require an additional 11 months to complete the remaining 3010 applications.

“The DTIC [Department of Trade, Industry and Competition] has advertised for these vacancies and we anticipate a much shorter time frame to adjudicate the remaining applications.”

When asked about the start date for applications for the 2024/2025 financial year, Tau stated that this will take place before the end of this year.

“Applicants have already commenced with registering their profiles on the system in preparation for the call which will be issued in December.”