The Portfolio Committee on Trade and Industry has welcomed a decision by the National Lotteries Commission to launch an investigation into allegations of massive fraud and corruption related to grant funding.
The committee held a meeting with the lotteries commission on Tuesday in Parliament.
The committee’s chairperson, Duma Nkosi, said fraud must be eradicated in all its forms.
“Whether there is fraud to the value of R10 or R1 million it is still fraud,” he said on Wednesday.
Nkosi said this after a meeting with the NLC officials which provided an update
on the distribution of funds from the National Lotteries Distribution Trust
Fund, particularly in terms of so-called proactive funding.
The NLC also reported on its third-quarter financial and non-financial performance for the 2019/20 financial year.
Earlier this year, the NLC said its board of directors 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, according to Professor Alfred Nevhutanda, Chair of the NLC.
“Most of the allegations of nepotism, fraud and corruption appeared to be in relation to proactive funding. The NLC committed itself to provide the committee with the terms of reference given to the audit firm investigating the allegations, and that it would report to the committee on its findings and on any measures to be taken,” said Nkosi.
(Compiled by Charles Molele)
