The Special Investigating Unit (SIU) has called for lifestyle audits to be the norm at the National Lotteries Commission (NLC), which has been dogged by corruption and looting allegations.
The SIU — the state’s corruption-fighting investigating body — provided MPs with an update on how former NLC board members and executives siphoned funds from the entity amounting to nearly R300m to purchase luxury properties and goods including Rolls-Royce cars. The funds were earmarked for worthy causes such as the construction of old-age homes and drug rehabilitation centres.
“Lifestyle audits [should] to be conducted for all NLC officials and board members … The NLC should adhere to the policy of transferring money to the NPO’s in tranches as opposed to transferring the grant amount in one tranche prior to receiving progress reports,” the SIU said in a submission to parliament’s trade, industry and competition committee.
There have been many corruption allegations levelled against the NLC recently, mainly centred on the distribution of proceeds from the national lottery. NLC executives, including former COO Phillemon Letwaba, who resigned recently before a disciplinary hearing could be conducted, have been accused of diverting multimillion-rand grants to NPOs that are connected to family and friends.
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