×

We've got news for you.

Register on SowetanLIVE at no cost to receive newsletters, read exclusive articles & more.
Register now

Charities lose R58m because of Lotto infighting

R58-MILLION. That is the amount three non-profit organisations in the skills, social and environmental sectors could have received had it not been for the infighting between two Lotto bodies.

In terms of the National Lotteries Act, the National Lottery Board serves as a trustee for the fund, with various distribution agencies given the mandate to administer and approve applications for funding by NGOs.

But tension between the NLB and agencies have led to a situation where several NGOs have been unable to access funds.

Two weeks ago the NLB had to fend off 200 members representing more than 450 dependent organisations who protested outside its offices in Pretoria.

Last September, Supreme Court of Appeals Judge Azhar Cachalia ruled that the funds, amounting to billions of rands, belonged to deserving communities and not to the NLB.

Cachalia was presiding over a case concerning two charities that had their grant applications turned down. The charities had allegedly failed to comply with NLB guidelines.

An internal document also reveals how the NLB last year reversed a decision by one of the distribution agencies to fund three of the many dependent organisations.

Before its term could expire in July last year, the Arts, Culture and National Heritage and Charities distribution agency had, among other things, approved funding worth R58-million to three organisations.

About R20-million was allocated to the Molteno Institute, R21-million to Tirhani Support Group and R16.9-million to the African Conservation Trust.

However, when their term expired, Trade and Industry Minister Rob Davies gave the NLB powers to execute the agency's functions.

With members of the DA out of office, members of the NLB apparently altered decisions previously made by the DA.

By August last year the NLB had deducted and cancelled fundings meant for hundreds of non-profit organisations.

NLB spokesman Sershan Naidoo said he was not aware of any funds that were withdrawn when the board was temporarily under the DA's jurisdiction.

Would you like to comment on this article?
Register (it's quick and free) or sign in now.

Speech Bubbles

Please read our Comment Policy before commenting.