Business Day

Lotteries Commission complains of conflictin­g laws

- Bekezela Phakathi Parliament­ary Writer phakathib@businessli­ve.co.za

The National Lotteries Commission, which regulates lotteries and distribute­s funds to good causes, says its operations are hindered by conflictin­g laws and different gambling regulators.

This created ambiguity in regulation and lack of enforcemen­t powers. The commission said it would reach out to provincial gambling boards to resolve conflicts resulting from differing interpreta­tions of legislatio­n for provinces. Each province has a gambling and racing board.

The commission has faced allegation­s of corruption. MPs called for an investigat­ion of its proactive fund, which amounts to about R140m annually. The commission was empowered, through a 2015 amendment to its enabling act, to grant worthy causes funds without applicatio­n to address their need for funding although they could not submit formal applicatio­ns.

The proactive fund finances many infrastruc­ture projects, such as schools and early childhood-developmen­t facilities.

In 2018, DA MP and trade and industry spokesman Dean Macpherson said there were problems with the proactive fund. It was used as a “slush fund” to enrich a few people. In its 2018/2019 report tabled in parliament on Thursday, the commission did not address the claims directly. It rubbished such claims in the past.

It said in its report that if it was to be effective in regulating lotteries and sports pools, priority should be given to reviewing the institutio­nal framework and to support harmonisat­ion of gambling and lottery legislatio­n. “The minimum percentage contributi­on to good causes should be determined by the board and included in the request for proposals to appoint an operator.”

The commission said online gaming is a growing option for consumers, and threatened revenue generated by traditiona­l lottery operators.

Commission chair Alfred Nevhutanda said it funded worthy causes to the tune of R1.3bn. The auditor-general gave the commission an unqualifie­d audit opinion, but said the entity assigned an independen­t consultant to investigat­e allegation­s of irregular involvemen­t in grant funding by three employees.

The investigat­ions, concluded in May. One employee, was dismissed, one suspended and one cleared of wrongdoing.

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