A one million rand grant by the National Lotteries Board to help the Congress of SA Trade Unions (Cosatu) fund its 25th year anniversary celebrations is being referred to the auditor general's office by the Democratic Alliance (DA) for investigation.
The DA said that should the grant be found to be irregular, it would demand that Cosatu repay the money.
A statement issued on Thursday by Jacques Smalle, the DA's shadow deputy minister of trade and industry said: “It is unacceptable that funds supposed to be used to the benefit of needy causes are being used to finance tripartite alliance events. This is a clear conflation of party and state.”
Smalle said his party would be writing to Auditor General Terence Nombembe to investigate the grant.
He said Trade & Industry Minister, Rob Davies was in possession of the details of the grants in a written reply to his Parliamentary questions.
According to Davies' reply, the full breakdown of funds provided to COSATU for the hosting of its 25th anniversary was as follows: 650,000 rand for performances by national artists, 250,000 rand for setting up the stage and sound at the event, 50,000 rand for performances by local artists and 50,000 rand for the venue.
Smalle said the lotteries board was mandated to give support to deserving charities, sports organizations and other entities that promote the general welfare of our people.
“It is completely inappropriate for the board to provide financial support to a political interest group that spent the money on a self-serving celebration. Cosatu's anniversary celebration contributed in no way constructively to improving people's lives and should therefore never have been considered for funding. An appropriate project could have spent this money much more usefully,” he said.
Smalle went on to say that the board and Davies needed to explain exactly why this payment was considered to be an appropriate use of the lotteries resources.
At the end of last year, 40 million rand was granted to the National Youth Development Agency to host an ANC Youth League event.
Coastu and the National Lotteries Board have yet to respond. - I-Net Bridge