Exposing Financial Warfare: The R1-million NLC Campaign Against GroundUp's Corruption Reports

The National Lotteries Commission (NLC) of South Africa has been caught in a financial and legal onslaught, spending over R1 million in an attempt to silence GroundUp, an investigative news platform exposing allegations of corruption within its operations. According to information provided by the new Minister of Trade, Industry and Competition (TIC) Parks Tau, the NLC, under its previous administration, employed costly legal motions geared towards intimidating journalists and curtailing press freedom.

The revelation comes after Democratic Alliance MP Toby Chance prompted Tau for clarity on NLC’s expenditure. The TIC minister disclosed legal expenses approaching R1.4 million were incurred by the NLC in the bid to contest media publications it deemed defamatory. GroundUp's rigorous work over the years to unveil corruption in Lottery-funded projects was the prime target of these pursuits.

In January 2020, legal firm Malatji Khanye, acting on behalf of the NLC, demanded GroundUp cease publishing details of lottery grant beneficiaries, threatening court action. The NLC invoked a section of the Lotteries Act, suggesting that the publication of grantee information was unlawful – a claim firmly rebutted by GroundUp’s legal counsel, Jacques Louw.

Subsequent to the failed legal threats, the NLC escalated its battle to the Press Council, lodging a complaint against GroundUp. However, the complaint was dismissed on all accounts, including upon appeal. Malatji Khanye’s influence crested when, in July 2020, they represented United Civil Society in Action (UCSA), an entity with close ties to the NLC's previous leadership, to halt details of lottery grantees from publicizing.

The situation with UCSA unfolded alongside another controversy involving Thabang Mampane, former NLC Commissioner, who, backed by Malatji Khanye, inaccurately claimed a non-existent Lottery-funded minstrel museum had been completed. GroundUp’s pointed questioning prompted demands for story retractions and apologies, which were deflected as unsubstantiated by GroundUp and its legal team.

The NLC’s aggressive strategy escalated into the realm of defamatory media releases, where uncorroborated allegations were levied against GroundUp and specific journalists, including Raymond Joseph. GroundUp staved off these charges with fact-based reporting, while the NLC continued to issue calls for the public to report perceived fraud – an overt act of villainization of whistleblowers and journalists.

The media maelstrom further spiraled with the spread of a defamatory graphic, alleging undeclared monetary benefits from lottery grants linked to Raymond Joseph and associates – assertions resurfacing, without evidence, in broader discussions and social media shares. Despite these wide-ranging tactics, GroundUp's integrity remained intact, having never legally faltered in its battle with the NLC.

The financial warfare waged by the NLC stands as a stark reminder of the lengths to which entities may go to stifle truth and transparency in journalism. Yet, in the face of adversity, GroundUp's commitment to uncovering malfeasance within public institutions endures, calling for a continued defense of press freedom in South Africa.