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- The district attorney wants Minister Ebrahim Patel to fire the NLC board and put the entity under administration.
- The trade, industry and competition portfolio committee has heard an investigation into corruption in the disbursement of funds that led to a police investigation.
- The district attorney says the alleged corruption occurred under the supervision of the current board.
The DA has asked Commerce, Industry and Competition Minister Ebrahim Patel to fire the board of the National Lottery Commission (NLC) and place the entity under administration.
This after the Commerce, Industry and Competition portfolio committee heard on Wednesday that the Department of Commerce and Industry was investigating corruption in the disbursement of lottery funds in four projects, involving the suspended COO of the NLC, Philemon Letwaba. , and your friends and family.
One of these cases, that of Denzhe Primary Care, had already been referred to the police for a criminal investigation, while a report on the other three cases was expected within the fortnight.
The investigation focuses on the following allegations:
- Denzhe Primary Care: It is alleged that the funds were incorrectly distributed to a hijacked non-profit organization, called Denzhe Primary Care, through a proactive funding transfer. Denzhe received funds to build a new drug rehabilitation center and the facility was still incomplete. The amount involved was R27.5 million.
- Zibsimazi: It is alleged that the director of Zibsimazi was related to an employee of the NLC. Furthermore, it was alleged that the company was created in May 2017 and was granted the financing in November 2017. The amount involved was R4.8 million.
- Life for Impact: It is alleged that the NPO had a common director with Zibsimazi. It is also alleged that a commercial company was created and awarded NLC funding six weeks after its creation. The amount involved was R10.1 million.
- I am made for the glory of God: The NPO received R11m and it is alleged that R2m of that was paid to a private company owned by a person related to an NLC employee.
“Each of the aforementioned cases occurred under the current leadership of the NLC and yet they have remained intact,” DA Deputy Mat Cuthbert said in a statement issued Thursday.
At Wednesday’s meeting, Cuthbert’s colleague Dean Macpherson asked NLC chairman Alfred Nevuthanda if he would resign.
“The answer is a big ‘no’. No,” Nevhuthanda replied.
“The minister is the one who will tell me to resign.”
READ ALSO | Police investigate 4 alleged corrupt projects in the lottery commission, but the chairman of the board will not resign
In his statement, Cuthbert said: “This shows that the NLC leaders refuse to take responsibility for the corruption that has affected the organization or for the harm that has been inflicted on it.”
“There can be no other option for Minister Patel than to show leadership and end this unfortunate crisis at the NLC, once and for all,” Cuthbert said.
The investigation followed numerous media reports, notably from GroundUp, that detailed alleged misconduct in the distribution of lottery funds. The NLC and a shadow NGO tried to gag GroundUp.
