By Vhanhangwele Nemakonde.
The National Lotteries Commission (NLC) has committed to rebuilding the trust lost due to corruption within its grant funding department.
The NLC has been plagued by corruption, with some officials found to have benefitted from grants meant for community projects.
As a result, the Special Investigating Unit (SIU) was brought in to investigate misconduct within the NLC. In February, the unit revealed that the government and NLC had lost about R1.4 billion to corruption.
The SIU has initiated at least 10 criminal referrals against NLC officials, non-profit organisations and companies which unduly benefitted from the commission.
Additionally, the Asset Forfeiture Unit (AFU) has secured preservations in the NLC cases to recover funds used to buy properties for the benefit of employees and members of NPOs who had applied for grants.
These include actor Terry Pheto, whose house was auctioned, and musician Arthur Mafokate.
‘Things went wrong in NLC’
During a media briefing on Tuesday, NLC Commissioner Jodi Scholtz said the commission was working to improve governance and compliance.
“We have been able to ensure that our internal audit unit is fully capacitated with the right skills. We have also implemented an internal governance framework which governs how we work and also signed code of conducts,” said Scholtz.
“These are very important mechanisms for us to hold each other accountable. We have implemented lifestyle audits, these are ongoing. They started last year. The members of Exco [Executive Committee] have already been subjected to those.”
Scholtz added that the NLC had launched a comprehensive programme to combat bribery, corruption, and fraud within its grant funding department.
“That’s our biggest area of risk. We have looked at digital transformation as a way to streamline our operations, enhance our transparency and also improve our service delivery,” said Scholtz.
This modernisation drive will ensure that we remain competitive and comparative, not only to other grant funders within South Africa but also internationally.
“In terms of our commitment to transparency and accountability, we’ve committed to rebuilding trust and maintaining a transparent and accountable governance system. Part of that accountability is recognising that in the past, things have gone wrong.”
Reparations
Scholtz said the NLC would visit projects where funding was misappropriated to ensure reparations are made. According to the SIU, about 30 such projects have been identified.
The NLC has also developed an online grant funding system, though paper applications will still be accepted.
Grant applications will open on 1 November, with the scope of applicants now extended to sports NPOs.
“We will check compliance with the department of social development, CIPC, Home Affairs and Sars,” said Scholtz.