Two properties in South Africa have been put under the control of a court-appointed administrator over alleged misappropriation of lottery funds, news outlet GroundUp has reported.
According to the website, the Special Investigative Unit (SIU) has frozen the assets on an order granted by Judge Mashile, as it is believed that the private homes in Pretoria and Hartbeeshoek were purchased with an R13m (£584k) grant from the National Lotteries Commission (NLC).
Additional information suggests that the money was intended to subsidise an agricultural project in, which would’ve helped around 1,900 unemployed youth and elderly people.
The grant was paid to the non-profit organisation Malusi WeSizwe. The purchased properties are both under the name of Nelisiwe Mahlangu, a Director at the same organisation, GroundUp further added.
In general, South Africa’s lottery has been embroiled in a myriad of scandals and rising scrutiny, which Lottery Daily has covered extensively in the past.
The former licence owner Ithuba held the operating rights for several years over what is generally allowed under the lottery framework. The NCL itself was a target of continuous investigations by the SIU over the misuse of lottery grants. And while there is a new management, some investigations against former NCL officials are still ongoing.
Furthermore, the process of granting a new lottery licence was recently completed, but this also did not go without scandals. Minister Parks Tau, who oversaw the process, was continuously accused of close ties to licence applicants.
He has denied any such accusations, and defended the delay in the granting of the licence as necessary to ensure that integrity is maintained at the highest level, and that the most suitable bidder is selected based on operational capabilities.
On 1 June, the incumbent lottery operator, Sizekhaya Holdings, will take over the licence for a period of eight years. To no one’s surprise, however, alleged government ties were again brought into the spotlight, with reports circulating that Sizekhaya leadership holds ties to deputy President Paul Mashatile.
These claims have been shot down by Sizekhaya, while Chief Executive Officer, Lebogang Ndadan, promised that responsibility and player protection will be the number one priority for the lottery sector under Sizekhaya’s mandate.
