R1bn

CityPress - - Business -

com­mis­sion as un­true.

Nevhutanda’s af­fi­davit, filed in prepa­ra­tion for the trial, which be­gins to­mor­row, also re­veals that Gi­dani only man­aged to gen­er­ate R33 bil­lion for the Na­tional Lotteries De­vel­op­ment Trust Fund, in­stead of the R83 bil­lion it promised to gen­er­ate when it was awarded its li­cence in 2007.

This means Gi­dani only man­aged to gen­er­ate just over 40% of what it had promised, leav­ing thou­sands of char­i­ties that could have ben­e­fited out of pocket.

Gi­dani had, since 2009, failed to hon­our its li­cence agree­ment and was vir­tu­ally in­sol­vent for the ma­jor­ity of the seven-year pe­riod it ran the Na­tional Lot­tery, said Nevhutanda, who has asked the court to dis­miss Gi­dani’s case.

“Gi­dani has, through­out its ten­ure as op­er­a­tor of the Na­tional Lot­tery, been propped up fi­nan­cially by hun­dreds of mil­lions of rands in pub­lic funds that would oth­er­wise have been al­lo­cated to the good causes sup­ported by the Na­tional Lotteries De­vel­op­ment Trust Fund,” Nevhutanda said in court pa­pers. This was de­spite the un­prece­dented de­ci­sion in 2009 by the then Na­tional Lotteries Board – now the Na­tional Lotteries Com­mis­sion – to grant Gi­dani ac­cess to un­claimed lot­tery prize money.

“Gi­dani spent most of its ten­ure as se­cond li­censee of the Na­tional Lot­tery op­er­at­ing in con­di­tions of in­sol­vency, and used the threat of dis­rup­tion to the Na­tional Lot­tery that was pre­sented by the risk of fi­nan­cial col­lapse to ob­tain a suc­ces­sion of con­ces­sions from the com­mis­sion’s pre­de­ces­sor, the Na­tional Lotteries Board,” said the com­mis­sion.

Some of th­ese con­ces­sions in­cluded the re­lax­ation

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