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The Special Investigation Unit will investigate the alleged corruption in the National Lottery Commission between 2014 and 2020 (Photo: Ashraf Hendricks)
President Cyril Ramaphosa has signed a proclamation authorizing the Special Investigation Unit to investigate alleged corruption in the National Lottery Commission. The proclamation allows the State to recover the economic losses caused by acts of corruption, fraud and mismanagement.
First Posted by GroundUp
President Cyril Ramaphosa has signed a proclamation authorizing the Special Investigation Unit (SIU) to investigate alleged corruption and mismanagement involving the National Lottery Commission (NLC).
Signed by the president on October 20, it entered into force when it was published in the Official Government Gazette on Friday, November 6.
The main mandate of the Law of Special Investigative Units and Special Courts aims to recover and prevent the economic losses of the State caused by acts of corruption, fraud and mismanagement.
Ramophosa’s decision to involve the SIU comes as a result of continuous reports corruption involving Lottery grants amounting to hundreds of millions of rand, increasing political pressure and calls from civil society for the government to act.
The proclamation covers crimes “that occurred between January 1, 2014 and the date of publication of this Proclamation, or that occurred before January 1, 2014.” It also covers any crime after the date of its publication that is “relevant, related to, incidental or auxiliary to the issues … or that involves the same persons, entities or contracts investigated under the authority of this Proclamation.”
Regarding Friday’s proclamation, Ramaphosa has authorized the SIU to investigate:
a) serious mismanagement in relation to the affairs of the NLC;
b) inappropriate or illegal conduct on the part of NLC employees or officials;
c) illegal appropriation or spending of money or public goods;
d) illegal, irregular or unapproved acquisitive acts, transactions, measures or practices that affect state property;
e) intentional or negligent loss of public money or damage to public property;
f) infringements in terms of Law for the prevention and fight against corrupt activities; Y
g) illicit or improper conduct of any person that has caused or may cause serious damage to the interests of the public – “or any category thereof”.
As an independent statutory unit, the SIU is accountable to Parliament and the President. He has powers to subpoena, search, seize and question witnesses under oath. The unit is also empowered to “take civil actions to correct any irregularities it discovers in its investigations.”
When it discovers criminal conduct, the SIU can cooperate with the Hawks and the National Tax Authority (NPA) “to ensure that there is an effective investigation and prosecution.” The SIU also works closely with the NPAs Asset Forfeiture Unit (AFU) “Where their powers are most appropriate or effective to recover the proceeds of crime.”
The proclamation comes immediately after the recent formation of a Hawks Task Force to investigate the corruption of the Lottery.
The Hawks began their investigation into Lottery corruption after receive a complaint from the Department of Commerce, Industry and Competition (DTIC) in September, according to Hawks spokesman Col. Katlego Mogale.
All criminal complaints related to Lottery corruption that have been filed with the police are now being consolidated for the task force to investigate, he said.
Independent investigators appointed by the DTIC have also turned over dossiers with their research results to three more multi-million rand Lottery-funded projects.
They had previously submitted a file on Denzhe Primary Care to the Hawks to investigate. The latest files involve Zibsimansi Y Life to impact in the 21st century. The department has yet to make a decision on filing criminal complaints, as it has done in Denzhe’s case.
Independent researchers are still investigating multi-million dollar grants for various other organizations.
Corruption Watch, which has spoken openly about the Lottery’s corruption and is surveillance the appointment of a new chairman to the NLC board, welcomed the proclamation.
Karam Singh, head of legal affairs and investigations at Corruption Watch, said: “We are very happy to see a proclamation on the NLC matter. It is something that we have traced given the stories of many years of alleged corruption.
“We hope that the investigation can address the serious allegations of financial wrongdoing as reported. There are systemic political patronage issues revolving around the NLC, and hopefully a well-focused investigation will lead to accountability for this. ” DM
