NPOs demand audit of Lottery payments

2012-01-18 23:19

Pretoria - Non-profit organisations are demanding that grants made by the National Lotteries Board (NLB) during the past three years be subjected to a forensic audit and that board members be subjected to a lifestyle audit.

The demands are contained in a memorandum, of which Sapa has obtained a copy.

The memorandum is due to be handed to the NLB when representatives of non-profit organisations are expected to march on the NLB offices on January 27.

NLB spokesperson Sershan Naidoo confirmed that on Wednesday "we did get official notification" of the planned march.

In the memorandum the organisations ask that grants in excess of R5m be fully disclosed to the public, and that applications for grants can be submitted all year round, instead of once a year.

They call for the NLB to reduce the turnaround time for applications, including grant payments, to a maximum of 120 days.

Naidoo said: "We understand it is difficult for these charities."

He said the NLB only had R800m available for distribution to charities and that the number of charities seeking grants had risen from an average of 4 000 a year to 8 000 in 2011.

Rural areas

He said Lotto ticket sales had not kept pace with the demand from charities. Additionally, new government regulations stipulated that 50% of funding must go to charities in rural areas.

"We are there to help, but unfortunately we are not responsible for fundraising."

March organiser Sandra Millar, who also specialises in helping charities raise funds, said the frustration was not over the amount of money available, but rather over how it was distributed and, on occasion, to whom.

"It's about the abuse of power at the National Lotteries Board, the corruption, nepotism, and very questionable decisions regarding funding and the recipients."

She pointed to funding given to the National Youth Development Agency for the World Youth Festival - subsequently labelled the "kissing fest" after reports of delegates kissing, instead of doing work, were published.

A public outcry followed news that the National Lottery Distribution Trust Fund had provided R40m for the festival held in December 2010 within a very short time, while many charities waited for years for significantly less money.

Events company

She said there were questions over R51m in funding for an organisation called Makhaya, "an events company which operates mainly in Eastern Europe and the fundraiser happens to be the daughter of the chairman of the NLB".

Christine Delport, the chief executive of the Greater Rustenburg Community Foundation (GRCF) said she did not believe the board had the capacity to assess applications for funding.

"They tie you down in a contract to a time frame, but they don't pay according to that time frame."

She said the GRCF had four applications pending for funding. Two of those date prior to 2010. The GRCF had only received a response to one of the applications.

Shiela Gastrow, the chief executive of non-profit organisation Inyathelo - the SA Institute for Advancement - said the problem that had raised the ire of the non-profit sector was the haphazard manner in which funds were allocated.

"There is not much logic in the way funds are made available."

She said one year a charity could receive funding, but the following year there would be none.


She also criticised some of the bigger grants made by the NLB, including the R51m to Makhaya.

In a column that appeared in the City Press newspaper last year she also questioned the R58m grant given to an organisation called Impucuzeko to make a film called Iqili, which means The Crafty One.

However, Naidoo said organisations needed to plan properly when applying for grants and that each grant was considered on its merits.

"We are open to interaction with these organisations, but each grant has to be considered case by case," he said.


Read more on:    nyda  |  nlb  |  lotto

Read News24’s Comments Policy publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
Add your comment
Comment 0 characters remaining

Inside News24


'Zuma's legacy will be judged by Nkandla'

The legacy of President Jacob Zuma is contingent on how he deals with the issue of upgrades to his Nkandla homestead, says Cape Town Archbishop Thabo Makgoba.


Latest elections multimedia

Why Jack Parow wants you to vote on 7 May
The ad the SABC doesn't want to air
Elections 2014 in one cartoon
This year's election posters
  • Thursday Sir Lowry's Pass - 05:35 AM
    Road name: Old Sir Lowrys Pass Road
    TRAFFIC LIGHTS not working at Bezweni Road
  • Thursday Cape Town - 05:35 AM
    Road name: Buitengracht Street
    TRAFFIC LIGHTS not working at Waterkant Street
More traffic reports...

Jobs in Cape Town [change area]

Property [change area]

Travel - Look, Book, Go!

Escape winter, head to Mauritius

Escape winter by spending 7 nights in Mauritius' tropical bliss from R13 215 per person sharing. Includes return flights, airport transfers and accommodation. Book now! - shop online today

Get many eggs in one basket!

Gaming bundles: 2 Super Hits games for R99, 3 Disney games for R99 and more + exclusive accessory bundles only available on While stocks last. Shop now!

25% off bestselling books!

The Real Meal Revolution by Tim Noakes, Jeffrey Archer’s Be Careful What You Wish for, Man’s Search for Meaning by Victor E. Frank and many more titles. Shop now!

Up to 25% off electronics

Buy top electronics and save up to 25%. Such as’s 1# selling product the gobii eReader, Patriot X Porter flash drive, Asus Nexus 7” 3G tablet, Samsung Galaxy SIII, Lenovo G580 Notebook and many more. Shop now!

DStv HD PVR Decoder now R949

The DStv HD PVR Decoder has further revolutionised the television experience with lifelike viewing, sharper images, more vibrant colours and precision picture quality. Now R949, save R550. Offer valid while stocks last. Shop now!

Up to 30% off appliances & homeware

Save up to 30% on appliances and homeware this Easter! Offer valid while stocks last. Shop now.

OLX Free Classifieds [change area]

Samsung Galaxy s4

Mobile, Cell Phones in South Africa, Western Cape, Cape Town. Date October 24

Best bargain in big bay

Real Estate, Houses - Apartments for Sale in South Africa, Western Cape, Cape Town. Date October 25

VW Golf 6, 1.6 Trendline (Excellent condition)

Vehicles, Cars in South Africa, Western Cape, Cape Town. Date October 25

Canon EOS 600D

The Canon EOS 600D Digital Camera puts the widely respected...

From R5389.95

I'm shopping for:


You may be good at organising events but they do take their toll on your energy levels. You may need some time out today just more

There are new stories on the homepage. Click here to see them.


Create Profile

Creating your profile will enable you to submit photos and stories to get published on News24.

Please provide a username for your profile page:

This username must be unique, cannot be edited and will be used in the URL to your profile page across the entire network.


Location Settings

News24 allows you to edit the display of certain components based on a location. If you wish to personalise the page based on your preferences, please select a location for each component and click "Submit" in order for the changes to take affect.

Facebook Sign-In

Hi News addict,

Join the News24 Community to be involved in breaking the news.

Log in with Facebook to comment and personalise news, weather and listings.