South Africa’s National Lottery is once again facing criticism, with questions being asked not only about how winners are chosen but also how funds are managed.
In the latest blow, the Special Tribunal, a judicial body tasked with recovering public funds, has ordered former National Lottery Commission (NLC) board member Adv. William Elias Huma to repay more than R21m (£903,000) after finding two grants were awarded unlawfully.
The ruling follows a Special Investigating Unit (SIU) investigation which also marks the first time NLC grant funding has been formally overturned. It comes at a time when the regulator is already under fire from both the public and campaigners over transparency, fairness and oversight.
Trust in the spotlight
Lottery players have recently voiced frustration about the level of transparency around jackpot draws. Earlier this month, a R124m (£5.1m) Powerball win through online banking sparked a wave of comments on X, with many questioning why so many past winners came from the same bank.
Calls have since been made for the lottery to return to its old system of live televised draws. The Aubrey Tau Foundation said numbers should once again be drawn manually in front of a “reputable audit firm”, arguing this would help restore public confidence.
“Not having live draws and a reputable audit firm overseeing the process will have dire consequences, including possible rigging of lottery results,” the Foundation warned.
In response, the National Lottery insisted that all draws remain fully legitimate, audited and monitored, using certified random number generators “with no shortcuts, no bias and no preselected winners”.
NLC under the microscope
The Huma case has only added to doubts. The SIU’s review found that two grants – R16.5m given in 2019 to the Samaritan Initiative NPO and R4.6m awarded in 2020 to Reagile NPC – were funnelled to entities tied to Huma and his relatives. Judges ruled the money was misused, projects never delivered and the NLC left out of pocket.
One grant was designated for a chicken farm initiative in Marikana, in the North West province, but investigators said the funds were diverted through a company later controlled solely by Huma. The farm is now derelict, and the community has reportedly seen no benefit. The second grant, run by his wife and nephew, produced no results either.
Judge M. Victor described Huma’s conduct as “egregious, negligent and dishonest”, adding that his legal defences were “bald, obtuse and unmeritorious”.
Huma and his associates must repay the full R21m, while R10m from the sale of his Waterkloof property has already been preserved to help recover the funds. They have also been ordered to cover legal costs.
The SIU says this is only the start, with 18 more review applications against questionable grants worth over R320m already filed. Assets linked to Huma – including farmland and a hotel in Rustenburg – are set to be auctioned, with proceeds redirected to proper community projects.
Judge Victor cited UN Human Rights Chief Navi Pillay in the judgment by asserting that “corruption kills”. He added: “The money stolen through corruption every year is enough to feed the world’s hungry 80 times over.”
Ongoing pressure
The lottery has also struggled to shake off negative headlines around its operating licence. Both Ithuba, the current operator, and Sizekhaya Holdings, the company set to take over next year, have faced allegations of political ties.
For communities still waiting on promised development, the Tribunal’s ruling is a sign that some money may finally be clawed back. But taken together with public unease over draw transparency and the tender process, it increases doubts over the integrity of South Africa’s lottery system.