The National Council of Provinces (NCOP) has passed the National Lotteries Amendment Bill 2013, that is intended to enhance the efficiencies in distributing funds to good causes, and to ensure effective governance and management within the lottery industry. The Amendment Bill amends the Lotteries Act No 57 of 1997 (the Act) and will be send to President Jacob Zuma for assent.
Since its inception in 2000, the national lottery has contributed excess of R16 billion in developing communities and alleviating the plight of the needy in this country. The value of the lottery business is South Africa is estimated at R40 billion.
The Minister of Trade and Industry, Dr Rob Davies, says the positive contribution of the lottery to the South African economy has not been without challenges. According to him, an assessment was made to identify those challenges that impede effectiveness and efficiencies in the distribution of funds.
“Some of the identified challenges are lack of quorum for adjudication in the Distributing Agencies as a result of unavailability of members to attend meetings, and recusals due to conflict of interest. Strained relationships between the National Lotteries Board and the Distributing Agencies, and lack of accountability of Distributing Agencies to the National Lotteries Board.
No set turnaround times for processing applications and for payments. Lastly inadequate structure and capacity in the National Lotteries Board to carry out the mandate effectively,” said Davies.
In order to address these challenges, the Amendment Bill intends to provide for the establishment of a National Lotteries Commission, the licensing of an organ of state to conduct national lottery, a clear accountability process for Distributing Agencies, and provide for the removal of Reconstruction and Development Programme (RDP) as a category to which funds should be distributed.
National Lotteries Commissioner will be appointed in consultation with Minister to lead the National Lotteries Commission. The National Lotteries Commission is introduced to provide for an appropriate and more effective structure to deliver on the mandate under the Act, and to distinguish between the National Lotteries Board as an institution and the Board.
The functions of the National Lotteries Commission are clearer and enhanced to realise impact in communities through proactive and application based measures," added Minister Davies.
The Amendment Bill empowers Minister to appoint an organ of state to operate the lottery in the event that private entity continuously failed to realise the legislative objectives that relate to skills and technology transfer, local procurement, and promotion of the Broad-Based Black Economic Empowerment and transformation.
“In this case, Minister will not issue the request for proposal calling for interested parties to bid for the licence to operate the lottery.Therefore, the lottery operator must ensure that it has specific measures to achieve these objectives in order to grow an industry that is South African in all respects. It must be emphasised that this will be invoked only if the licensing way of running the lottery does not yield the desired results over time,” he stated.
The Amendment Bill provides for the appointment of Distributing Agencies on a fulltime basis and integrates the function in the value chain of the organisation. The Distributing Agencies will account administratively to the Board while maintaining their adjudication independence in the same manner that bid adjudicating committees function in various business set ups.
The fulltime nature of appointment is intended to eradicate delays in adjudication of grant applications due to lack of quorum. Conflict of interest will be properly managed since members of the Distributing Agencies will no longer be allowed to be a member and at the same time play an active role in organisations that may apply for grants.
Enquiries:
Sidwell Medupe, Departmental Spokesperson
Tel: 012 394 1650
Cell: 079 492 1774
E-mail: MSMedupe@thedti.gov.za
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