Johannesburg - Those who sought to defraud the National Lotteries Board (NLB) will be dealt with, Trade and Industry Minister Rob Davies said on Tuesday.
“Anybody who asks for funding for a particular purpose and uses it for self-enrichment will be dealt with, without fear or favour,” Davies said at the two-day NLB stakeholder engagement indaba in Boksburg.
The minister said the delay in beneficiary approvals, due to a conflict of interest by members of the distributing agency and lack of quorums during adjudication meetings belonged in the past.
“We have decided that we will be appointing full-time distribution agencies in an attempt to make the processes quicker and more efficient in terms of decision making,” Davies said.
“Also, no longer will it just be that a member of the distributing agency can recuse themselves if they have interest in a particular application.”
From now on, no member of the distributing agency would be allowed to have any interest whatsoever with any project approved by the NLB.
Davies said the National Lotteries Distribution Fund was the largest single supporter of good cause activities in South Africa, with over R18 billion distributed over the last 15 years.
Each year, over R2bn was distributed to such causes.
At the indaba, norms and standards would be discussed, with Davies stating they were very important as they promoted accountability.
“As we broaden the reach of the Lotteries Funding, we need to make sure that the beneficiaries are actually doing what they are supposed to be doing,” he said.
“These norms and standards will therefore assist us in ensuring that the beneficiaries know what they should do.”
Davies said he would announce the new lottery operator over the coming weeks.
“The National Lotteries Board has done its own part regarding the next lottery operator as they have submitted their recommendations and the ball is in my court,” he said.
“I am committed to ensure that there is absolute integrity in the process of decision making about the next lottery operator.”
Current operator Gidani's licence expires at the end of May next year.
Sapa