JODI SCHOLTZ: National Lotteries Commission working to regain trust

Any organisation that has existed for more than 20 years goes through change and renewal. This is an organic part of growth, development and dynamism in the environments in which we operate.

By its very nature, change — even when it represents growth — is not easy. At the National Lotteries Commission (NLC), our season of growth coincides quite turbulently with a season marred by fraud, corruption and maladministration, resulting in investigations and efforts to combat all the above. In the course of these investigations, shocking revelations outlining exactly what has happened in granular detail have come to the fore.

I walked into the NLC on February 1 2023. In the 10 months since I have immersed myself in the mandate, the processes and the people. I have also come out in public on several occasions to share what we have found, and what we intend to do. 

I have also felt the frustrations of the people who make up the NLC and who desperately want to move past this period, shed the skin of fraud and corruption and focus on the mandate.

As a collective, we are fully awake to the fact that (re)gaining the public trust is a process, not an event. We’ve undertaken some activities in pursuit of this goal and as a gesture of our commitment, including anti-fraud risk management.

In September we subjected all officials in the organisation — from board members to distributing agencies and staff — to integrity tests that reflect the probable risk of the tested party acting in a manner that might expose the NLC to danger. We will also be performing lifestyle audits, in line with the recommendations of the Special Investigating Unit.

This period has been a blight on the good work done by the NLC. Over time it casts doubt on the impact this organisation has made since its establishment in 1999. It threatens to overshadow what is being done to uplift communities across SA.

In the meantime, the work has steadily continued. In August trade, industry & competition minister Ebrahim Patel issued the request for proposals for the fourth national lottery and sports pools licence, signalling the beginning of the process to appoint the next national lottery operator by 2025.

Technological advancements in the gaming industry, and the proliferation of online retailers, pose a threat to the legislated environment. To this end the modernisation of the NLC, its systems and processes will enhance our regulatory and enforcement capabilities in the quest to curb the scourge of illegal lotteries.

On the funding side, this includes building synergies with other government entities such as the Companies & Intellectual Properties Commission and department of home affairs to strengthen verification measures. We have introduced physical pre- and post-adjudication verification of projects through site visits before a grant is approved, and our investigations unit has investigated and referred several cases to law enforcement.

From the outcomes of investigations it has recommended or actioned the withdrawal of funds, listing of NPOs on a delinquency register, registration of criminal cases of fraud, and the recovery of funds, among others.

In 2024 the NLC will mark 25 years of existence as the only regulator of lotteries and sports pools in SA. We are mindful that the future beckons with questions on how it will overcome past challenges. These will be answered along the journey as the board, management and staff work steadily to bring to life the “three pillar approach” of returning the NLC to the focus of its core mandates by reinstating credibility, restoring governance and building operational excellence.

Weeks after the Springboks’ astounding win at the Rugby World Cup, SA is still buzzing. If there is anything to learn from their campaign to glory in Paris it is to never give up on the goal — no matter the odds. With the energy of the nation behind you the chances of success increase exponentially. Our goal is not only to restore the NLC to its former glory, but to exceed what we previously believed possible.

Our strategic priorities include greater transparency, stringent oversight and increased accountability. We are committed to ensuring funds reach their intended beneficiaries and that our operations are always conducted with the utmost integrity.

To borrow from the Boks, we are StrongerTogether. The NLC cannot do this alone. We invite every South African reading this to join us on this journey. Your trust, vigilance and active engagement are the cornerstones of our renewal. We encourage you to share your thoughts, report concerns and hold us accountable.

We will work tirelessly to live up to the promise of regulating lotteries fairly, and always funding for impact.

• Scholtz is commissioner at the National Lotteries Commission.