Further probing of Lottery grants procedure

AN INVESTIGATION is to be launched into a R64.1 million grant by an agency of the National Lotteries Board (NLB) to an events company that employed the daughter of the board’s chairman.

The Department of Trade and Industry, which oversees the NLB, announced yesterday it would appoint an independent investigator to probe allegations linking the grant to the fact that the daughter of chairman Professor Alfred Nevhutanda was employed by Makhaya Arts and Craft.

The announcement follows a march to the NLB offices by non-profit organisations in January, when they handed over a memorandum calling for lifestyle audits of board members and a forensic audit of grants made in the last three years amid complaints of “abuse of power, corruption, nepotism and very questionable decisions regarding funding of recipients”.

The grant to Makhaya was cited as one example, along with R40m in funding for the National Youth Development Agency’s (NYDA) hosting of the World Festival for Youth and Students in Pretoria in 2010.

NYDA is closely linked to the ANC Youth League, with much of its top management drawn from the ranks of former league members.

Trade and Industry spokesman Sydwell Medupe said yesterday there was no evidence that yet supported the allegations relating to the Makhaya grant.

The grant had been made by the Arts and Culture Distribution Agency .

“The National Lotteries Board does not get involved in adjudication processes of any of the agencies,” Medupe said.

Nevhutanda had agreed to co-operate and findings and recommendations are expected within 15 days.

NLB spokesman Sershan Naidoo welcomed the announcement, saying the board believed in the integrity of its systems.

He said Nevhutanda’s daughter had resigned from Makhaya and confirmed she had been appointed only after the grant was made.