Chairperson’s foreword

Operating in an ever-evolving context

In the five years since, the regulations to the Act have been steadily implemented, and the sector in which the NLC operates has navigated the changes well. We entered this third decade with an invigorated vision and mission, now working toward becoming not only a continental, but also an innovative global leader in regulating safe and sustainable lotteries and sports pools.

The reality of the fourth industrial revolution (4IR) is here, and organisations that do not evolve will lose relevance. In a country where a lack of resources contrasts swift technological advances and adoption, the COVID-19 pandemic has been a reality check, forcing organisations such as ours, which are working for the public good, to take a back to basics approach and revisit how accessible we are to the most vulnerable members of society. For this reason, research will always be a pillar by which the NLC stands to ensure relevance to its stakeholders.

Meeting stakeholder needs

In the period under review, the outcomes of a study on the National Lottery participation and attitudes in South Africa was published. The political, social and economic circumstances of South Africans, and uncertainty on how these environments are affecting the operations of the National Lottery, contributed to the need to explore the participation and attitudes of the general public. The NLC took proactive steps to continually monitor the changing preferences, attitudes, and participation levels of lottery players in order to understand our market better.

Partnerships remain critical to the success of the NLC’s work, and we continue to strengthen strategic partnerships through carefully considered MOUs. One such example is the MOU with the National House of Traditional Leaders, where we pledged to capacitate rural communities toward sustainability.

Upholding ethical and effective governance

We remain steadfast in our duty to protect the public through effective governance, compliance enforcement, monitoring and evaluation, and the continued fight against fraud and corruption.

The development and implementation of an appropriate corporate governance framework is endorsed by the Board. The Board accepts responsibility for the application of the principles of effective corporate governance, ensuring it is practised consistently throughout the organisation. The Board discharges this role through its charters based on a corporate governance framework, which includes, amongst others, the principles of the Lotteries Act, PFMA, Treasury Regulations and sound governance principles. These are further aligned with and responsive to the organisation’s strategic risks which are reviewed on an ongoing basis, but at a minimum, annually.

Pleasingly, during the period under review, the NLC was recognised by the Auditor-General of South Africa at the Clean Audit Awards for achieving such for the NLC (Separate and Consolidated), the National Lotteries Distribution Trust Fund and the National Lotteries Participant’s Trust.

The organisation has continued to seek out cost-saving measures and enforce sound internal control mechanisms to achieve 93% performance and clean audit opinions.

Appreciation

These are not the achievements of individuals, but of the collective of NLC officials who work diligently to see the organisation succeed. I wish to thank the Commissioner, Exco and staff for their dedication to the values of this organisation, which impacts lives daily.

During the financial year, the South African government transitioned into the fifth administration, and the Department of Trade, Industry and Competition saw a changing of the guard in Minister Ebrahim Patel. Through the execution of our regulatory and grantmaking mandates, the NLC’s strategic outcomes and plans are closely aligned to address the new administrations’ focus to boost economic growth, inclusion and to enable meaningful transformation.

Finally, the Board and I extend our gratitude to our shareholder for their consistent support in the face of opportunities and victories as we continue to regulate lotteries and fund for impact.

Prof NA Nevhutanda
Chairperson of the Board

National Lotteries Commission