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