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In this presentation, Jacques Smalle MP, the DA Shadow Deputy Minister of Trade and Industry, discusses the background, current legislation, objective of proposed amendment, and recommendations for potential amendment to the National Lotteries Act. The aim is to better define allocations under the "miscellaneous" section, prevent misuse, ban contributions to political organizations, and restore public trust in the Lotto.
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Amending the National Lotteries Act Presentation by Jacques Smalle MP DA Shadow Deputy Minister of Trade and Industry
Contents • 1. Background • 2. The current legislation • 3. Objective of proposed amendment • 4. Recommendation on potential amendment
1. Background Key developments in the public domain: • COSATU receives R1 million for annual celebrations from NLB • NYDA receives R40 million for World Festival of Youth and Students from NLB • NLB turns down charities like Sikhula Sonke, an organisation that helps 4000 poor children in Khayalitsha • Revelations about billions in unspent NLB funds • DTI report 3 February 2010
1. Background Overall effect: • Lotto suffers public relations problem • Lotto loses credibility as a means to empower worthy causes • Public pressure to better utilise NLB funds • Perception that NLB payouts falling prey to corrupt elements
2. The Current Legislation • Set proportions of NLB payouts go to: • The reconstruction and development programme • Charities • Sport and recreation • Arts, culture and national heritage • Miscellaneous Purposes
2. The Current Legislation • Potential Problem: • Miscellaneous expenditure items not well defined. • Opens the door to misappropriation of funds to causes or events that do not benefit the public • Potential window of opportunity for NLB to appropriate funds on dubious basis • Potential conflicts of interest arise
3. Objective of Proposed Amendment • Better define what allocations are allowed under the ‘miscellaneous’ section • Prevent possible misuse of ‘miscellaneous clause’ for personal or political benefit • Outright ban contributions from NLB to political organisations under the ‘miscellaneous’ section • Restore public trust in apolitical nature of Lotto • Restore Lotto reputation as a fair institution that puts charities first • DA must account to the NLDTF and NLB inorder to establish accountability
4. Recommendation on Potential Amendment • Amend section 31 of the National Lotteries Act • All current subsections should be kept in tact • I recommend the addition of a 7th subsection • Subsection 7 should clearly define exactly what kind of organisations are eligible for support under ‘miscellaneous category’ • Insert new section to bring accountability of Distributing agents • Appeal process for rejected application
4. Recommendation on Potential Amendment • This clarification should explicitly exclude political organisations • Allocations to organisations that are omitted from subsection 7 • Enforce criteria and not application based • Certain threshold - These omitted organisations can still appeal to the Ministers of Finance and Trade and Industry directly for NLB support as per subsection 3 of section 31. - Ministers would therefore directly have to motivate why contributions to political organisations are valid.
