SIU Urges Extension of Corruption Probe into National Lotteries Commission Amidst Ongoing Fraud Allegations

The Special Investigating Unit (SIU) of South Africa has formally requested an extension to its ongoing probe into alleged corruption within the National Lotteries Commission (NLC). This request entails amending a 2020 Presidential Proclamation to include additional investigative powers and a broader timeline. The Department of Justice anticipates a decision by the end of February 2025, according to spokesperson Kgalalelo Masibi.

Initially, the SIU was confined to examining grants issued by the NLC between January 2014 and November 2020. However, given that allegations of corruption have persisted beyond this period, an extended mandate is sought to encompass these later incidents. The move aims to address gaps left by the original proclamation, particularly in the areas of procurement processes and service provider appointments—sectors reportedly tainted by fraud involving sums amounting to hundreds of millions of rands.

The collaboration between the NLC and the SIU has intensified recently, evidenced by a renewed letter of engagement that extends their partnership for another year. This ongoing cooperation will enable the SIU to capitalize on existing internal investigations by the NLC, which have been supported by damning findings from independent audits.

The extension, if granted, would not only allow the SIU to scrutinize the procurement and supply chain management at the NLC but also enable them to investigate the flurry of whistleblower reports concerning corruption that occurred after the current proclamation deadline.

Significant incidents under scrutiny include irregular expenditure on IT and legal services as highlighted by audits from the Auditor-General and independent auditing firms hired by the NLC. Specific scandals include millions in irregular payments to service providers under dubious circumstances and substantial funds directed to media spending which disproportionately benefitted certain publications.

The urgency of these investigations is underscored by the scale of mismanaged funds. In 2022, the SIU disclosed to Parliament that it was investigating corrupt lottery grants valued at over R1.4 billion. This figure has since escalated to more than R2 billion, revealing a deepening crisis in the management of lottery funds.

The scandal has already led to numerous disciplinary actions and resignations within the NLC, with pivotal figures such as company secretary Nompumelelo Nene facing charges over procurement irregularities and misinformation.

As the decision looms, the outcome will determine whether the SIU can expand its efforts to fully address the scope of corruption alleged at the National Lotteries Commission, thereby restoring integrity and public confidence in one of the nation’s key funding bodies.