The National Lotteries Commission (NLC) has promised to introduce life-style audits, protection of whistleblowers and implement recommendations by the Special Investigating Unit (SIU).
The NLC said it wanted to deal with allegations of maladministration facing the embattled organisation.
During a media briefing yesterday, newly appointed NLC board chairperson Prof Barney Pityana said the organisation had to fix the rot that was discovered by the SIU.
The SIU made a presentation before parliament’s portfolio committee on trade and industry earlier that day on its findings on allegations of maladministration and corruption at the NLC. The SIU began the investigation into the NLC in 2020.
Pityana said the NLC was taking serious steps to address corruption and malfeasance.
“We seek to restore the credibility of the institution and enhance our relationships with the ministry of trade, industry and competition (DTIC). As the board we have also noted instances where there is a culture of non-compliance and deviation from the policies of the PFMA (Public Finance Management Act). We are doing our best to address this.
“We are also partnering with the public service commission, DTIC and CIPC (Companies and Intellectual Property Commission) to provide us with instruments to deal with malfeasance, life-style audits and whistleblower hotlines,” said Pityana.
He said the presentation of the SIU in parliament had been an “uncomfortable reading”.
“We need to give effect to the recommendations of the SIU. We need to restore NLC as organ of philanthropy so that we can address unemployment and hunger of our vulnerable people,” he said.
During its presentation before parliament, SIU head Adv Andy Mothibi said they had found that NLC funds meant for vulnerable communities and projects were “cynically and brazenly stolen by an organised syndicate of persons”.
Mothibi said during phase one of its investigations, R279m was corruptly siphoned out of the NLC with the assistance of the executive and board members.
The SIU recommended that implicated members be subjected to a disciplinary hearing and that the NLC establish a committee to deal with new proactive funded matters to eliminate the risk of individuals initiating proactive funding projects and ultimately granting funding projects to family and friends.
Earlier this month, the SIU made a move to freeze the pension benefits of former COO Philemon Letwaba. The unit obtained a preservation order from the Special Tribunal to halt Letwaba’s pension payout of R2.8m pending a disciplinary hearing into his role in the distribution of NLC funds to non-profit organisations.
At the time of the order, SIU spokesperson Kaizer Kganyago said its investigation had found that Letwaba used friends, family businesses and trusts to receive money from NPOs who got money from the NLC, for his and his family’s benefit.
Pityana said Letwaba’s disciplinary process has been dropped after he resigned.
kokam@sowetan.co.za
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