The new public protector says she will leave the dispute over the state capture report prepared by h.
Claims by the National Lotteries Board that they can't pay needy organisations on time because distribution agencies do not work on a full-time basis are rubbish.
This was the response of the Department of Trade and Industry to the Lotto's claim that this was the reason for the delay in the distribution of funds.
It also brushed aside the Lotto's appeal to have application requirements softened.
The NLB chief executive officer Vevek Ram said the distribution agencies met only twice a month, making it impossible to handle the number of applications that came in.
Ram said application requirements were too strict. "If a charity does not have the money to operate - how will it get two-year audited financial statements?"
But DTI deputy director-general Zodwa Ntuli said the Lotto board had enough staff to help out with applications.
Ram said most of the R3,3billion not allocated could have gone to health, education and crime combating initiatives, had the DTI implemented recommendations the Lotto board had made three years ago.
Though both parties agree that urgent action is needed, they don't agree on the source of the problems.