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National Lotteries Commission refuses to release list of beneficiaries

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NLC chairperson claims people are making money off the beneficiary list

Photo of National Lotteries Commission sign
The chairperson of the National Lotteries Commission has told Parliament that the list of beneficiaries has been “stolen”. Archive photo: Raymond Joseph
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The National Lotteries Commission has refused to release information on beneficiaries of lottery funding because, says the chairperson, the information is “generating money for journalists”.

“We came here last year and we reported that information of beneficiaries have been stolen,” the chairperson of the Commission, Professor Alfred Nevhutanda, told Parliament’s portfolio committee on trade and industry on Tuesday.

“We had to ask the Department of State Security to come to look at the matter. We’re getting reports that our information is generating money for journalists,” he said.

Following a number of reports on corruption and conflicts of interest in NLC grant allocations, the Commission decided for the first time in 18 years not to disclose the list of grant beneficiaries in its 2019 annual report.

Mathew Cuthbert (DA) was not satisfied with the NLC’s reasons. “The opening comments from the chairperson sound like something coming out of a Bell Pottinger playbook,” he said, referring to the UK-based PR firm that did work for the Gupta family. “The conspiracy theory that information is being stolen and used for financial use is just something I cannot believe,” said Cuthbert.

Cuthbert asked the NLC why the Commission had not “provided the full beneficiaries list for the 2019 financial year despite the committee requesting” it on several occasions. Committee chair Duma Nkosi (ANC) had asked Nevhutanda in November 2019 to “assist” the committee with the question of the list.

But Nevhutanda maintained that not disclosing the grant beneficiaries was in the beneficiaries’ best interest and within the law.

“Parliament can’t teach us to break the law, the same law that you gave us,” said Nevhutanda.

In February, the NLC released a statement that the board had appointed the audit firm Sekela Xabiso to investigate claims of fraud in how grant funds are distributed. The final report should be completed by May, Nevhutanda told the portfolio committee.

ANC MPs said that they were curious about the “noise” that journalists were making about the NLC, especially when the Commission was “doing such good work”.

Simanga Mbuyane (ANC) also wanted to know why there had been so much negative press on the NLC, particularly in GroundUp.

“Looking at your performance, this is one of the best performing entities. I’m not sure what this hullabaloo with the media is about,” said Priscilla Mantashe (ANC).

While the committee adjourned for a short tea break, in the National Assembly corridor there was a heated exchange between journalist Raymond Joseph, who has written extensively on dodgy NLC grants, and musician Tebogo Sithathu. Sithathu said that he’d been part of the march in Pretoria to the Department of Trade of Industry a week ago. Sithathu repeated the accusation that Joseph had received Lottery money, which Joseph has denied, and Sithathu said he was not “scared of you white people”.

When Cuthbert raised this exchange as a point of order, Nkosi declined to address it in the committee meeting. “Let’s not bring outside things inside,” he said.

Karabo Mafolo is a Daily Maverick journalist who has been seconded to GroundUp for a month.

GroundUp is being sued after we exposed dodgy Lottery deals involving millions of rands. Please help fund our defence. You can support us via Givengain, Snapscan, EFT, PayPal or PayFast.

© 2020 GroundUp.
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Write a letter in response to this article

Letters

Dear Editor

I find it strange for the NLC Chairperson not to release the list of beneficiary as per his statement. Where does transparency start and end? Our organisation since started requesting funding in 2018 to date we never get a cent. We were told in 2019 that no funds are available hence we applied very early.

In 2019 we read a scandal done by the CEO which resulted in poor NPOs who requested as little as R500k not to receive even a cent. We work very hard facilitating Gender Based Violence and do counseling without getting a cent to put petrol but doing the work with heart as we are helping our people.

I pray that those who are making their pockets big will answer one day. Our people suffer day by day and individuals get richer.

Dear Editor

It is our right as the general public who contribute our hard earned money to know where and how our funds are being utilised. It is totally unacceptable for the Chairperson of the NLC to deny us this right, clearly the NLC is trying by all means to hide something from us. A thorough investigation should take place.