A host of media statements have appeared recently regarding the functioning of the National Lotteries Board and the distribution agencies. In some of these statements the resignation of the former CEO, Professor Vivek Ram, was linked to the operational challenges faced in the distribution of good cause funding. As a matter of fact, Professor Ram had indicated a possible interest in participating in the future bidding process for the next Lottery operator. The Board felt it would involve a conflict of interest and accepted Professor Ram’s offer to resign.
The Department of Trade and Industry (the dti) is aware of the significant challenges experienced in distributing good cause funds and have given priority attention to the problem. One of the first matters undertaken by the Minister upon assuming office was to meet with the National Lotteries Board and management and stakeholders. This initiative resulted in demonstrable improvements in turnaround times and fund expenditure in the short-term. Concurrent medium-term initiatives included the successful hosting of a major Indaba of the main role-players involved in the distribution and take-up of good cause funds. An outcome of this steady process of continual improvement is that new legislation is now being considered by Parliament, which if approved, will result in further improvements in the streamlining of processes and in turn-around times.
In respect of governance, the Minister welcomed and commended the National Lotteries Board for receiving an unqualified audit report from the Auditor-General. However, in light of the pressures generated by a decreasing pool of funds, increased number of applications and improvement in turn-around times, the Minister emphasised that mechanisms be put in place to ensure the continuance of high standards of corporate governance. These standards include policy common to the dti and all its agencies; that any instance of mal-administration or abuse of public funds will be subjected to independent investigation and depending on the outcome, decisive action will immediately be taken.
Enquiries:
Sidwell Medupe-(Departmental Spokesperson)
Tel: (012) 394 1650
Mobile: 079 492 1774
E-mail: MSMedupe@thedti.gov.za
