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In a significant development within South Africa’s National Lotteries Commission (NLC), former acting chief operating officer Sanele Dlamini and KwaZulu-Natal client liaison officer Sibonelo Vilakazi have been ousted from their positions following allegations of impropriety connected to the mismanagement of multimillion-rand lottery grants. These allegations are part of a broader inquiry into the misuse of funds intended for public benefit.
Dlamini's tenure as NLC's acting COO came after the resignation of Phillemon Letwaba, who himself was under scrutiny for approving questionable projects. Notably, one of these projects includes a purported sports centre in Soweto that was funded but never materialized. The Special Investigating Unit (SIU) and the Hawks are currently examining these irregularities, which point to a deeply rooted issue of corruption within the organization.
Investigations also exposed that Vilakazi's wife's company benefited from lottery proceeds earmarked for football clubs and crèches in a classic case of conflict of interest. Despite their dismissals, both Dlamini and Vilakazi have lodged appeals, which effectively puts their terminations on hold, allowing them to continue drawing full salaries until a final decision is made.
Trade, Industry and Competition Minister Parks Tau detailed in a response to inquiries that precautionary suspensions have been placed on six other NLC employees implicated in corruption, while a seventh has been charged but remains unsuspended. The six on suspension have collectively earned nearly R8.4 million in salaries during their suspension period. High-profile cases among the suspended include NLC company secretary Nompumelo Nene and legal manager Gugulethu Yako, with Nene having received close to R5 million since her suspension.
These actions stem from a zero-tolerance policy against fraud and corruption endorsed by the NLC, which has seen 16 officials stepping down or medically boarded, including those referred by the SIU. Minister Parks Tau reassured that officials implicated in the Presidential Proclamation and SIU investigations would face prosecution, and in other fraud and corruption cases, efforts would be made to open criminal cases and recoup any misappropriated funds.
In Dlamini's case, his dismissal was associated with the misallocation of funds to the Phumelela Educational Training Projects and Motheo Sports and Education Trust. Dlamini failed to report discrepancies in project reports, leading to questionable grant distributions. The new NLC administration is actively trying to recover these funds, having opened two cases against Motheo following the discovery of an abandoned project site.
Vilakazi's guilty verdict was underscored by evidence presented to parliament by SIU head Advocate Andy Mothibi, depicting a network of self-enrichment schemes through the misdirection of lottery funds. His wife's company received about R32 million from grassroots organizations funded by the NLC, leading to the freezing of her company and personal accounts under court order.
The NLC is currently in transitional turmoil, having to navigate the criminal and administrative repercussions of these misconduct cases, all while maintaining operational integrity. As the appeals process continues, the outcome of these cases will send a strong message about accountability and the steps being taken to restore public trust in the Commission's workings.