Rédaction Africa Links 24 with Raymond Joseph
Published on 2024-03-15 10:55:12
The National Lotteries Commission (NLC) has been embroiled in a scandal involving fraud and corruption, as revealed by forensic reports commissioned by the previous board. Out of 15 reports, only two were fully implemented, with one not implemented at all and 12 only partially implemented, according to NLC Commissioner Jodi Scholtz.
Scholtz led a delegation to present the NLC’s report on its 2023/24 Quarter 3 financial and non-financial performance to Parliament’s trade, industry, and competition portfolio committee. The previous executive and board members have all resigned or been suspended, and the entire board has been replaced due to their involvement in corruption scandals.
The NLC failed to act on recommendations from investigations that implicated board members and top management in corruption. When a new board and executive were appointed, efforts were made to locate the investigative reports, which had cost millions of rands. These reports were found scattered across the building and have now been centralized and recorded in a consolidated database for proper implementation of their recommendations.
Vincent Smith, the NLC chief auditor executive, and his team have compiled a repository of forensic investigations and recommendations, which are now being tracked. The NLC has also collaborated with the Hawks, with a special unit instituted to investigate NLC cases. Staff have been instructed to cooperate fully with investigators if approached for affidavits.
To address the rampant fraud and corruption, the NLC has suspended proactive funding and renamed it to research-based funding. The NLC Forensic Investigation Unit is probing all matters referred to it, including grant funding, irregularities, recruitment matters, and non-compliance. Contract management and the NLC’s supply chain management are also under investigation.
Additional investigations are being conducted into service providers, such as Fundudzi Media, Board Effect, MSG Group Sales, NEO Solutions, and Edge Consulting, who received millions of rands from NLC contracts. Consequence management has been implemented in some cases, with other investigations progressing or close to completion.
The NLC is focusing on small grants and monitoring all active projects to ensure impact. The Auditor-General’s findings have been captured in a database for implementation. The NLC is working to support law enforcement agencies and align with the findings of the Special Investigating Unit.
The committee members expressed concern over the slow pace of corruption prosecutions and the need for lifestyle audits for the board and staff to root out any wrongdoing. The NLC has developed a draft lifestyle audit investigation policy to ensure the process is conducted legally.
Overall, the NLC is taking steps to address the past corruption and rebuild its reputation. Progress has been made, but there is still much work to be done to restore trust in the organization and ensure accountability for all involved in fraudulent activities.
Read the original article on Daily Maverick
