Funding Shadows: Unveiling the Mystery of R17 Million Lottery Allocation to Sports Non-Profit

The allocation of R17.6 million by the National Lotteries Commission (NLC) to the Physical Education Institute of South Africa (PEISA), ostensibly for promoting physical education and sports, has ignited controversy due to the opaque details regarding the expenditure. GroundUp's investigations reveal an unsettling lack of accountability and transparency in the financial management of these substantial public funds.

PEISA, registered as a non-profit, was initially granted R12.5 million in 2020 purportedly to enhance "women and youth empowerment in high performance sport." However, how these funds were actually spent remains ambiguous. The breakdown includes significant allocations for travel, accommodation, and vaguely defined "transformation and development" purposes, without conclusive evidence of their impact or the specifics of the initiatives they supported.

In the following year, PEISA received an additional R5.1 million to facilitate participation in the International School Sport Federation Championship. Yet, the lack of public records or social media evidence regarding PEISA’s involvement or the outcomes of such participation raises serious concerns about the legitimacy and transparency of the expenditure.

Moreover, the intertwining roles of Norman Mphake, a director at PEISA, with several other sports organizations and companies, further complicates the transparency of PEISA's operations and funding uses. For example, the association between PEISA and FootGolf South Africa, both sharing the same registered address and director, creates potential conflicts of interest that jeopardize governance standards.

Despite the NLC's assertion that PEISA's projects were completed satisfactorily, the absence of detailed disclosures and the reluctance of PEISA's management to engage openly with investigative efforts suggest a significant disconnect between the reported and actual uses of the allocated funds.

The story extends beyond financial mismanagement; it touches on broader issues of governance, accountability, and the ethical stewardship of public resources. The involvement of the Special Investigations Unit underscores the seriousness of the allegations and the need for a thorough and transparent resolution to restore public confidence in how lottery funds — intended for public good — are managed.

The outcomes of this investigation could have far-reaching implications not only for PEISA but for the governance of non-profit organizations in South Africa, particularly those benefiting from public funds. Stakeholders, from policymakers to citizens, await clear answers and decisive action to ensure such issues are addressed comprehensively and transparently.