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Lotteries Commission Corruption Cover-up

Dear Editor

The Democratic Alliance (DA) will interrogate law enforcement agencies and the National Lotteries Commission (NLC) board in the upcoming Trade, Industry and Competition Portfolio Committee meeting, scheduled for November 5th.

We will ensure that the full extent of corruption at the NLC is uncovered. If it becomes evident that whistleblowers have faced a miscarriage of justice, the DA will be exploring ways in which Mr Makate and other whistleblowers are compensated if their allegations are found to be true.

This comes after it was revealed that the NLC spent close to R70 million on legal fees, defending multiple staff disciplinary matters between 2019 and 2023, and, under the current board, litigating against staff members who are accused of abusing their positions and misdirecting lottery funds.

The DA recently uncovered this information through a written reply from the Minister of Trade, Industry, and Competition, Mr. Parks Tau. The report documented 50 cases where the NLC disputed Labour Court rulings, defended staff dismissals or litigated against staff in disciplinary matters.

One case alone, involving whistleblower Mr. Makatse, cost over R8.8 million. Mr. Makatse, a former NLC employee, was suspended and dismissed after refusing to sign off on a multimillion-rand Lottery grant for a for-profit music festival. The suspension and dismissal occurred shortly before the grant was paid, despite Makatse raising concerns about corrupt dealings within the NLC. His appeals for justice were dismissed, leaving him destitute. In 2023, Makatse received international recognition as a whistleblower, being one of five South Africans awarded the Blueprint for Free Speech award.

The DA will hold the current NLC board and law enforcement agencies accountable during the Committee meeting, ensuring they act on the ongoing criminal investigations by the National Prosecuting Authority (NPA) and the Special Investigations Unit (SIU) into the R1.4 billion of illegally awarded grant money. Should any whistleblowers have been denied justice, the DA is prepared to take legal steps to correct this injustice and ensure full accountability and appropriate compensation.

Regards

Toby Chance MP
DA Spokesperson on Trade, Industry and Competition

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