NLC seeks to assist whistle-blowers

The National Lotteries Commission (NLC) has initiated a reparation process to address the injustices faced by staff members who were dismissed for exposing corruption in grant disbursements under the previous administration.  

Numerous NLC executives, senior managers and staff have been subjected to disciplinary inquiries on the basis of allegations of wrongdoing and corruption.

Allegations of corruption and looting of money intended for good causes have surrounded the NLC board and management for years, leading to the appointment of a one-year board in March 2022 and a five-year board in May 2023. The new board says it is determined to clean up the rot. 

Trade, industry and competition minister Parks Tau said in a written reply to a parliamentary question by Toby Chance, DA spokesperson on trade, industry and competition, that the NLC’s current leadership acknowledged the effect on individuals dismissed for whistle-blowing and was committed to making amends.

Tau said the NLC had invited known affected individuals to share their experiences. This step was aimed at understanding the extent of the harm caused and to offer formal apologies.  

“Commissioner Jodi Scholtz has met with affected individuals and described their experiences as ‘heart-wrenching’, noting that their lives were ‘turned upside down’ due to their dismissals,” Tau said. 

To protect the confidentiality of the proceedings and the individuals involved, the NLC planned to enter into non-disclosure agreements with whistle-blowers. Tau said Scholtz had justified this measure on the grounds that “people hear the NLC and they think we’re sitting on a pot of money”. 

While the NLC had not publicly detailed plans to cover legal expenses incurred by dismissed whistle-blowers, Tau said the reparation process was expected to address various forms of restitution, which could include legal costs. 

“The NLC has not specified whether compensation for lost income during the period following dismissal will be provided. However, the reparation process aims to address the hardships faced by affected individuals, which could encompass financial compensation,” Tau said. 

The reparation process was in the engagement phase, with the NLC communicating with seven individuals and expecting more to come forward. “The timeline for reparations will likely depend on the outcomes of these engagements and the establishment of appropriate reparation mechanisms,” the minister added. 

Tau said the commission was taking steps to prevent corruption and support those who reported wrongdoing. This included collaboration with the Special Investigating Unit (SIU), which is investigating more than 700 questionable projects involving more than R2bn. Two SIU staff members had been seconded to the NLC to assist with procurement investigations, bolster forensic capacity, and conduct lifestyle audits of staff. 

“The NLC has uncovered multiple fraud cases through forensic audits and reported them to the SAPS. This proactive approach demonstrates the commission’s commitment to addressing corruption,” the minister said. 

“In summary, the NLC is actively working to rectify past wrongs against whistle-blowers and is implementing measures to protect those who report corruption in the future. While specific details regarding reparations and protective measures are still being developed, the commission’s current actions reflect a commitment to transparency and accountability.” 

Former justice minister Ronald Lamola said in 2023 that his department was working on a legislative framework for whistle-blowers, including possibly providing legal assistance for them.

The creation of a fund was also recommended.

Lamola emphasised that ensuring the safety and protection of whistle-blowers was crucial as it could be challenging to obtain convictions without their co-operation.

“Therefore, it is imperative to implement strong measures to safeguard them. Extensive research and evaluation of the protected disclosures and witness protection legislation in SA has uncovered gaps and shortcomings in the current system.”

ensorl@businesslive.co.za