Edward Tsumele

Edward Tsumele

The Department of Trade and Industry has been sucked into the raging row between "marginalised" community artists and the National Lottery Distribution Board.

Freddy Nyathela, one of the artists whose organisations have been angered by the rejection of their applications for funding, confirmed that they have taken the matter to the department.

The Lottery Board reports to the department.

The department is looking into the issues raised by Nyathela about how his organisation and other entities have been treated by the Lottery Board.

At issue is the rejection of South African Roadies Association's (Sara) application for funding on the grounds that its books are not in order because of its reported lack of administrative control. Sara rejects the allegations.

Sara has asked its auditors to send a letter to the Lottery Board in support of their claim that their books are in fact in order.

Sowetan is in possession of the letter from the auditors, and it reads in part: "Your letter dated 1 September addressed to the above trust (Sara) has been brought to us for comment and to provide further explanation on our qualified opinion regarding the controls of donation income.

"The nature of the donation is that it is ad hoc and it is not as a result of the initiation of the transaction within the organisation.

"It is therefore not practical for any organisation to institute control over the collection and receipt of donation income ..."