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National Lotteries Presentation to Trade and Industry Committee - Nov 2001

Dr. Alistair Ruiters presents overview, NLDTF, agencies, applications, and allocations. NLB functions, categories, funding process, and emergency funding details provided.

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National Lotteries Presentation to Trade and Industry Committee - Nov 2001

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  1. PRESENTATION TO THE PORTFOLIO COMMITTEE ON TRADE AND INDUSTRY Dr Alistair Ruiters Director-General, DTI 7 November 2001

  2. OUTLINE • Overview • National Lotteries Distribution Trust Fund (NLDTF) • Distributing agencies • Applications and adjudication • Allocations to date: • Charities • Sports and recreation • Arts and culture • Miscellaneous

  3. OVERVIEW • National Lotteries Board • established in terms of the Lotteries Act No. 57 of 1997. • functions of the Board include ensuring that: • National Lottery and all other lotteries conducted within South Africa are conducted with due propriety; • interests of all participants in lotteries are protected; • net proceeds of the National Lottery are as large as possible; and • funds in the National Lottery Distribution Trust Fund (the “NLDTF”) are administered and invested in terms of the Act.

  4. OVERVIEW • Five broad categories of good causes identified by the Lotteries Act : • Reconstruction and Development Programme • Charities • Arts, Culture and National Heritage (including Environment • Sport and Recreation • Miscellaneous Purposes • Minimum allocations set by Minister of Trade and Industry (10% for each category, except Miscellaneous with maximum of 5%) - subject to change as experience is gained with distribution. • Distribution of funds overseen by the Board as trustees of the NLDTF

  5. National Lotteries Distribution Trust Fund (NLDTF) • Transfer of funds to NLTDF • funds transferred on a weekly basis by Uthingo • amount calculated using predetermined formula based on ticket sales • % Transferred to good causes started at 10.16% • Will increase up to a high of 40.58%. • Over the 7-year Licence period, an average of 30% of the proceeds after VAT will have been contributed to Good Causes.

  6. National Lotteries Distribution Trust Fund (NLDTF) • Amount available in NLDTF • Ticket sales began March 2000 • March 2000 - March 2001 financial year: R439,214,363.00 accumulated in the Fund, inclusive of interest, available for transfer. • Funds accumulated during 2001 will be used for distribution in 2002.

  7. May 2000: DTI published call for nominations for 3 categories November 2000: Process completed February 2001: Agency Members meet for 1st time for policy workshop. Shortlist presented to Cabinet for approval. DISTRIBUTING AGENCIES: Process of appointment Consultations by Minister of Trade &Industry with relevant Ministers

  8. DISTRIBUTING AGENCIES: Chairpersons • The Minister of Trade and Industry appointed the following persons as Chairpersons of the agencies: • Charities:Dr. Tebogo Maitse • Arts, Culture and National Heritage: Dr. Prince Nevhutalu • Sport and Recreation: Ms. Kedi Tshoma

  9. Emergency Funding • After March 2000, concerns raised by organisations that had previously received income from other lotteries/scratchcards. • Minister Erwin directed the National Lotteries Board to offer Emergency Funding from the Miscellaneous Purposes to organisations that could show that the reduction of the funding that they previously received was affecting their operations. • Call for applications made on 8th October 2000 with closing date of 30th November 2000. • Minister Erwin appointed National Lotteries Board as distributing agency for the miscellaneous purposes category. • Total of 400 applications received • Total of R4,102,000.00 allocated to 80 organisations that met the requirements.

  10. Applications and adjudication • Central applications office established, with specialised management information system • Each Distributing Agency identified criteria for funding and issued individual advertisements inviting potential beneficiaries to submit applications by a pre-determined deadline. • Statutory requirements were published in Government Gazette No. 21696 on 27 October 2000. • Calls for applications during March & April 2001. • Deadlines for submissions during May 2001. • Data capture during June 2001. • First adjudication meetings in July 2001.

  11. Applications and adjudication: Overall criteria • general development in the Republic; • the enhancement of the standard of living of all people in the Republic; • the number of tickets sold in each province; • the population of each province; and • the financial requirements of each province.

  12. Applications and adjudication: Charities • Called for applications on 25th March 2001 with deadline of 18th May 2001 • Funding aimed at registered charitable organisations at a risk of scaling down or closure as a result of lack of finances & with sound financial management. • Priority areas identified as organisations serving the needs of: • children, • youth, • socially vulnerable groups like women, • aged, • disabled, • people living with HIV/AIDS.

  13. Applications and adjudication: Arts, Culture & Heritage • Called for applications on 1st April 2001 with deadline of 31st May 2001. • Arts and Culture focus: organisations involved in the production of cultural products; building new audiences; education, training and skills transfer. • National Heritage (including Environment) focus: clean-up operations, especially in built up areas; planting of indigenous flora; youth environmental education; and partnerships between the more and less advantaged youth groups, with priorities of • job creation; • skills transfer; • nation building; • equity and the redress of historical imbalances.

  14. Applications & adjudication: Sports & Recreation • Called for applications on 1st April 2001, with deadline of 31st May 2001. • Targets: • existing sport facilities/clubs that lacked sport equipment; • upgrading and/or renovation of existing sports facilities; • training institutions/organisations involved in capacity building for sport

  15. Applications & adjudication: Adjudication process • Adjudication meetings held. • Members of the Distributing Agencies assess merits of each application in terms of prescribed requirements. • Successful applicants allocated a sum of money. • Conditions, if any, are identified. • Grant Officers visit projects to verify aspects of applications as requested by the Distributing Agencies. • Upon verification, bank details are also verified and Funding Agreements signed. • By signing the Funding Agreements, beneficiaries commit to: • use the awarded funds for the purposes as stipulated • submit quarterly reports

  16. SUCCESSFUL APPLICATIONS

  17. PROVINCIAL TICKET SALES

  18. ALLOCATIONS BY PROVINCE * Gauteng figure includes national charities based in Gauteng

  19. ALLOCATIONS BY CATEGORY

  20. CHARITIES:Breakdown by Province

  21. CHARITIES:Breakdown by Subcategory

  22. SPORTS & RECREATION: Provincial breakdown

  23. ARTS, CULTURE& HERITAGE: Provincial Allocations

  24. ARTS, CULTURE & HERITAGE

  25. MISCELLANEOUS: Allocation by province

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