SIU’S NLC investigation extended to include procurement contracts and extends for a five-year investigation period
President Cyril Ramaphosa has signed an amendment to the National Lotteries Commission (NLC) proclamation, which significantly broadens the scope of the Special Investigating Unit’s (SIU) ongoing investigation into the affairs of the NLC.
Proclamation R293 of 2025 amends the original investigation mandate (Proclamation R. 32 of 2020) in two critical ways:
1. It extends the investigation's timeframe, allowing the SIU to probe allegations of serious maladministration from the inception of the original proclamation in November 2020 up to 10 October 2025, effectively extending the investigation period by five years.
2. It adds 21 new categories of procurement and contracting to the investigation. These include a wide range of services in which it is alleged that procurement processes were flouted, and public funds were misused.
The newly added matters under investigation include, but are not limited to:
The procurement of or contracting for-
(a) the appointment of a panel of attorneys’ firms and legal practitioners in terms of Bid NLC/2020-05.
(b) The appointment of a service provider for a Comprehensive Employee Wellness Programme for the Employees of the NLC in terms of RFP/2021-15.
(c) The extension of the appointment of Metrofile for the off-site storage of documents and delivery thereof from 1 January 2021 to 31 March 2021;
(d) The appointment of a service provider for the Procurement of Electronic Board Pack in terms of RFP/2020-06, RFQ NLC/2019-006 and Bid NLC 2020-006;
(e) The appointment of a service provider for advertorial on Back to Basics Magazine;
(f) Submission for approval: deviation from the normal procurement process, Independent Media, Arena Holdings, Media 24;
(g) The appointment of Mail & Guardian for the media road show through a deviation from normal competitive bidding;
(h) a contract with a service provider for the provision of MPLS services on 12 May 2016;
(i) a Service Level Agreement for the rental of managed print services for the period 1 June 2018 to 31 May 2021;
(j) appointment of a service provider for travel, accommodation, and conferencing as it relates to the fourth licence RFP process;
(k) placement of advertorials in the Sunday World newspaper;
(l) a flashmob activation (Women 2021 Celebrations) involving MSG Group Sales, and Elsiscope Digital Solutions;
(m) The appointment of Neo Solutions in October 2017 for the development of a Company Secretariat Knowledge Hub Strategy;
(n) The appointment of Neo Solutions to investigate a potential hacking incident involving the electronic board pack.
(o) The appointment of Edge Consulting in June 2019 for the implementation of an Oracle Fusion System;
(p) The appointment of ProEthics to provide services in relation to ethics;
(q) The appointment of Workforce Healthcare in September 2019 for the provision of employee wellness services;
(r) The appointment of SRSQS Quantity Surveyors in January 2018 for project managing the acquisition of provincial offices;
(s) The appointment of Maluks Attorneys in April 2021 to a panel of legal service providers;
(t) an education and awareness broadcast campaign related to the purchase order dated 29 October 2020; and
(u) accommodation and travel services rendered by Regency Apartment Hotel and Ndila Transfers.
The SIU is now authorised to investigate whether the procurement of, or contracting for, these services was conducted in a manner that was not fair, equitable, transparent, competitive, or cost- effective, as well as contrary to applicable legislation, Treasury instructions, or the NLC's own policies and procedures.
The investigation will also cover any related unauthorised, irregular, fruitless and wasteful expenditure incurred by the NLC or the State. The amendment is a result of the allegations the SIU received during its investigation and the investigation's findings, which necessitated an extension of the scope and time.
The initial investigation was divided into three phases, valued at approximately R2 billion. The SIU is concluding the third phase and will proceed with civil litigation. Beyond investigating maladministration, corruption, and fraud, the SIU is committed to identifying systemic failures and recommending measures to prevent future losses.
In line with the Special Investigating Units and Special Tribunals Act 74 of 1996 (SIU Act), the SIU will refer any evidence of criminal conduct uncovered during its investigation to the National Prosecuting Authority (NPA) for further action.
Under the SIU Act, the SIU is also authorised to initiate a civil action in the High Court or a Special Tribunal in its name to address any wrongdoing identified during its investigation resulting from acts of corruption, fraud, or maladministration.
Enquiries:
Kaizer Kganyago
Spokesperson: Special Investigating Unit
Cell: 082 306 8888
E-mail: KKganyago@siu.org.za
