By Karabo Marifi
The National Lotteries Commission (NLC) has initiated a comprehensive six-year turnaround strategy to enhance operational efficiency, curb fraud, and restore community trust. This strategic shift includes the NLC’s commitment to address past corruption scandals, implement preventative measures, and expedite funding processes for community-focused projects.
NLC Commissioner Jodi Scholtz shared details of the plan during a recent press briefing, emphasizing how the commission has integrated “fraud prevention” into its processes to tackle inefficiencies that frustrated stakeholders in the past. Scholtz underscored the importance of developing a new grant management system to streamline applications and improve transparency in funding allocation. With a history of corruption that saw some R1.4 billion misappropriated, largely by former officials and their associates, the NLC has taken steps to preserve assets linked to these fraudulent activities. Properties, vehicles, and funds tied to former board members have been secured, with legal proceedings underway to recover these assets and reinvest them in community programs  .
A major component of this strategy is the rebranding of Proactive Funding to “Research-Based Funding” (RBF). The revised policy aims to rectify the weaknesses of the former system, which enabled large-scale fraud through less rigorous oversight. RBF will be launched with an initial focus on addressing critical needs such as food security and primary healthcare, starting with a pilot program in the Eastern Cape. By reinstating transparent funding mechanisms, the NLC hopes to rebuild public confidence and directly impact community welfare.
The Special Investigating Unit (SIU), under a mandate from President Cyril Ramaphosa, has been pivotal in uncovering the depth of corruption within the NLC. The SIU’s ongoing investigation has resulted in several criminal and disciplinary referrals, marking a significant move towards accountability. The NLC’s new board has actively collaborated with the SIU to strengthen anti-corruption protocols and ensure public funds serve their intended purposes. Recent asset preservation orders issued by the SIU and the Asset Forfeiture Unit have blocked the disposal of properties and vehicles tied to former NLC officials, awaiting court decisions that could redirect these resources back to public use  .
The NLC’s commitment to “reparative measures” also addresses harm caused to communities impacted by previous maladministration. Scholtz announced that affected parties and communities will be engaged privately, with significant milestones shared publicly. These efforts reflect a broader shift within the NLC towards accountability and transparency, as well as the agency’s intent to fulfill its mandate for public benefit.
This turnaround strategy aligns with ongoing support from the Department of Trade, Industry, and Competition, which oversees NLC activities. The NLC’s roadmap for the coming years outlines enhanced oversight, streamlined funding, and a focus on prioritizing genuine community development needs. Commissioner Scholtz acknowledged the substantial work ahead but expressed optimism about the progress made to date, commending her team’s dedication to regaining public trust and operational excellence  .
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