The National Lotteries Commission (NLC) says that despite two legal opinions expressing reservations it had to surrender R300-million from its reserve fund to the National Treasury. Failure to do so would have resulted in both the board and the NLC commissioner being guilty of financial misconduct, NLC Board Chairperson Reverend Barney Pityana explained in a letter to Parliament dated 3 October. The payment to the Treasury was raised by MPs during a fiery and often ill-tempered meeting when Pityana, NLC Commissioner Jodi Scholtz and other senior executives when they appeared before the trade and industry parliamentary portfolio committee on 18 September.
The NLC had reserves of R1.4-billion at the time of the payment but was only ordered to pay R300-million to the Treasury , Pityana, told Parliament. ALSO READ: Court orders suspended Lotto secretary to pay punitive costs The NLC reserve fund ensures that it has sufficient funds in its kitty if cash flow problems arise.
MPs said that the NLC had not answered questions in Parliament sufficiently and instructed Pityana to supply written answers. Pityana has done so. Parks Tau is the recently appointed Minister of Trade and Industry.
Mzwandile Masina is the recently appointed chair of the parliamentary portfolio committee. In a letter to Tau, Masina had asked the minister to disband the NLC’s board and dismiss Scholtz, as had several other MPs during the 18 September committee meeting. The committee has summoned the Treasury to.
