By Johnathan Paoli
National Lotteries Commission (NLC) board chairperson Barney Pityana has expressed his unwavering confidence in the board’s integrity amid mounting allegations of corruption and mismanagement.
Since Pityana took the helm in 2022, the NLC has faced increasing scrutiny over its governance and allocation of lottery proceeds, leading to calls for the dismissal of several board members.
He told reporters in Pretoria on Tuesday that much of the negative media coverage stemmed from a misunderstanding of the NLC’s functions, often exacerbated by political motives.
“We acknowledge that some of the media interest has been negative. Much of it reflects a limited understanding of the commission’s work,” he said.
The NLC regulates the lottery industry and is meant to ensure that proceeds benefit deserving causes.
However, its board has been accused of engaging in corruption and conflicts of interest, depriving communities of essential funding.
Pityana asserted that all board members have adhered to the law and ethical standards.
“The claims of an illegal board are baseless. The NLC operates as a statutory body, accountable to the Minister of Trade, Industry and Competition,” he said.
As part of its response to past governance failures, the NLC was implementing a comprehensive six-year turnaround strategy aimed at modernising operations and reinforcing oversight mechanisms.
This included the introduction of fraud prevention measures and streamlining the grant application process to enhance the efficiency of fund distribution.
NLC commissioner Jodi Scholtz highlighted the commission’s commitment to transparency and accountability, noting its collaboration with the Special Investigating Unit to address previous maladministration.
“We are focused on ensuring that the resources of the people are protected and used for their intended purposes,” she said.
Despite these efforts, the NLC is still grappling with ongoing investigations into alleged fraud, including reports that whistleblowers have faced retaliation for revealing corrupt practices.
When questioned about protection of whistleblowers, Scholtz explained that the commission adopted a case-by-case approach, with recommendations made by independent advisors after assessing individual circumstances.
The plight of whistleblower Mzukazi Makatse, dismissed after raising concerns about a multi-million rand grant for a for-profit event, has particularly caught public attention, underscoring the challenges faced by those who expose wrongdoing within the commission.
Additionally, the NLC has faced criticism for its legal expenditures, which have exceeded R73 million in recent years to resolve internal disputes.
With 50 cases currently in the Labour Court, the NLC’s governance practices are under intense scrutiny.
Pityana has called for a fair platform to address these concerns in the upcoming appearance before the trade, industry, and competition portfolio committee on 5 November.
“It is essential that we engage with our detractors and provide them with the information necessary to understand our work and the complexities we navigate,” he said.
As the NLC works to implement its corporate transformation initiatives, a key focus will be redefining grant funding processes to enhance accessibility for non-profit organisations.
A new research-based funding programme is set to be launched, targeting critical societal needs like food security and primary healthcare, starting in the Eastern Cape.
Moreover, the NLC aims to implement reparative measures to restore community infrastructure projects that have suffered due to mismanagement, guided by findings from the SIU and community feedback.
Pityana has urged stakeholders to participate in the upcoming application registrations, set to open at the beginning of November.
“We are committed to being an agent for development and social cohesion in South Africa,” Pityana said. The chair expressed hope for a path toward restoring public trust, saying the NLC’s leadership remained steadfast in its mission to ensure responsible management of lottery funds.
INSIDE POLITICS
