Foreword by the Minister
This Annual Report provides an account of the work of the National Lotteries Commission (NLC) over the financial year ended in March 2021
The NLC is an important agency and its work is intended to serve the poorest and most vulnerable of South Africans. The Report provides details of the activities of the NLC, and its list of beneficiaries in the 2020/21 financial year. This is in line with ensuring transparency and accountability in the affairs of public entities.
The COVID-19 pandemic has had a negative impact on the world economy and our country. This pandemic has brought forward some of South Africa’s developmental challenges, reforms and the enabling environment. Thus the landscape within which the Department of Trade, Industry and Competition (the dtic) and its entities operate has changed and to achieve the developmental goals, the department and its entities have had to adjust their operations for the financial year under review and the medium term to address the new environment and new priorities. There is an urgent need to boost levels of economic growth and economic recovery, support transformation and build a capable state.
During the pandemic, the NLC has made funds available for the purposes of addressing the impact of COVID-19 on communities and details of these are being made available to the relevant parliamentary oversight committees.
The AGSA (Auditor-General South Africa) has issued a qualified audit opinion on the financial accounts of NLC and has also identified a number of internal controls and compliance deficiencies that the accounting authority did not effectively oversee relating to financial reporting and compliance with legislation. These must be addressed by the Board on an urgent basis.
At the time of the audit, three investigations were still ongoing against the NLC, being:
- the Special Investigating Unit (SIU) investigation on the NLC for the period 1 January 2014 to 6 November 2020;
- the NLC Board investigation on allegations of maladministration and conflict of interest; and
- the investigation by the Directorate for Priority Crime Investigation (Hawks) relating to grant funding allegations levelled against beneficiaries, management and board members.
A new Board has been appointed at the end of the reporting period and Parliament was finalising its recommendations to the Ministry in relation to the new Board Chairperson. I look forward to the support of the new Board and the Commission in addressing the concerns relating to corruption to enable the NLC to fulfil its statutory mandate.
Finally, COVID-19 affected the work of public and private institutions and the country lost talented persons. I wish to convey my condolences to the friends and families of all who passed away.
Ebrahim Patel
Minister of Trade, Industry and Competition
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