The Special Investigating Unit (SIU) says it has completed the first part of its investigation into allegations of corruption and maladministration at the National Lotteries Commission (NLC).
Last year, President Cyril Ramaphosa signed a proclamation authorising the SIU to investigate the NLC, its senior officials and certain board members.
SIU Head Advocate Andy Mothibi says phase one of the investigation probed 12 allegations related to R279-million the commission lost through corruption.
The SIU is expected to conduct three different investigations into the affairs of the National Lotteries Commission, according to the proclamation signed by the President.
The SIU says the total monies expected to be recovered after these investigations is around R1.4 billion.
“This investigation has been so intense, massive and complex in terms of tracing the money but the investigation will reveal that we are just investigating there that the amount of the money that was involved under investigation in phase one was about R279 million,” says Mothibi.
Mothibi says civil cases will be instituted as part of efforts to recover money lost through corrupt activities.
“There are various actions that we take towards the civil litigation in recovering monies. Those are interim measures that we put in place so that when we ultimately get the order to recover the monies such as the freezing of assets and so on.”
The investigation also found various illegal transactions had taken place between companies linked to former board members and the executive. This also include collusion with law firms.
“Another important outcome honourable chair and honourable members is such that as we investigate, we picked up that there is misconduct by board members, by the officials, executives. We then bring out the outcomes for the disciplinary actions to be taken.”
Newly appointed NLC Board Chairperson Barney Pityana says an anti-corruption task team has been established as part of measures put in place to fight corruption. He says the board has also taken a decision to review of the commissions policies.
“That going forward we don’t suffer the same fate as the National Lotteries Commission had. So with the support of the Public Service Commission and the Department of Trade, Industry and Competition, we are undertaking a comprehensive process and the possible overhaul of all the policies critical to the proper and appropriate function of the National Lotteries Commission.”
The SIU says it will recommend a lifestyle audit for both the members of the board and senior management among other things.
Allegations of malfeasance at the National Lottery Commission run deep: SIU