The South African National Lottery Commission (NLC) has announced a series of significant developments aimed at enhancing its governance and performance. This move comes in the wake of a corruption scandal involving construction company Upbrand Properties in 2021, which raised concerns about the regulator’s integrity. The Minister of Trade, Industry, and Competition, Ebrahim Patel, has appointed Dr. Barney Pityana, a distinguished academic, theologian, and anti-apartheid activist, as the new chairperson of the NLC, effective from 1st August.
Reshaping NLC Leadership:
Dr. Barney Pityana’s appointment follows an extensive parliamentary process spanning nearly two years, which involved multiple shortlisted candidates undergoing interviews by the parliamentary portfolio committee. The selection process included public nominations, resulting in 41 possible candidates, with the minister ultimately submitting three names for parliamentary consideration.
Dr. Pityana brings a wealth of experience to the role, having previously served as the chairperson of the former national lottery operator, Uthingo. He holds a master’s degree in labor law and a PhD in religious studies, coupled with being a member of the Academy of Science. Dr. Pityana’s diverse background includes being an ordained priest of the Anglican Church and an admitted attorney of the High Court. He is widely recognized for his involvement in the anti-apartheid struggle and has made significant contributions to various fields, including human rights law, theology, and public ethics.
Minister Patel’s Response to Corruption Allegations:
In his appointment speech, Minister Patel addressed the corruption allegations involving grants made by the NLC, acknowledging the need for a distinguished and ethical leader to guide the new NLC board. He highlighted that a forensic investigation had been initiated into NLC funding decisions, with the Special Investigating Unit (SIU) probing further. Law enforcement agencies are expected to take action based on the preliminary findings of the SIU. Minister Patel emphasized the importance of recovering corruptly obtained funds and holding those implicated accountable before the law.
License Extension for Ithuba Holdings:
Additionally, the NLC has granted a two-year extension to the current operator, Ithuba Holdings, in response to a request. The NLC cited the adverse effects of the COVID-19 pandemic on the operator’s business as the basis for this extension. During the extended license period, Ithuba will be required to contribute at a higher rate to the NLC, with the funds earmarked for distribution to various charitable causes. Furthermore, the board has conducted a review of the operator appointment process, signaling a commitment to transparency and fairness in future selections.
The appointment of Dr. Barney Pityana as chairperson, the ongoing investigations into corruption allegations, and the extension of Ithuba Holdings’ license demonstrate the NLC’s commitment to improving governance and accountability. These developments mark a significant step toward ensuring the integrity of South Africa’s National Lottery Commission and its mission to support deserving causes. As the NLC enters a new era under Dr. Pityana’s leadership, there is optimism for a brighter and more transparent future in the regulation of the national lottery.