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BREAKING: AUDITOR GENERAL GRANTS THE NATIONAL LOTTERIES COMMISSION 5th CLEAN AUDIT DESPITE SIU PROBE

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ACCOUNTABILITY AT THE HEART OF TRUST

The National Lotteries Commission (NLC) was established in terms of the Lotteries Amendment Act (No 32 of 2013) to regulate the National Lottery

Article by: Natalie Müller

Update SA has received a report that the controversial, SIU Probed, National Lotteries Commission has received yet another clean audit for the 2019/20 financial year period, regardless of the ongoing Fraud and Corruption allegations against the commission.

On November, 09 2020, Veteran journalist Raymond Joseph reported that he had seen a proclamation signed off by President Cyril Ramaphosa, which grants the Special Investigations Unit (SIU) the powers to launch a probe into the allegations of corruption; within the NLC.

Information has emerged that the NLC has received its 5th consecutive clean audit for the 2019/20 financial period.

The NLC states that for the past five financial years, and several other periods in the NLC’s 21-year history, the Auditor-General has noted that the overall audit outcome of the NLC has re- mained clean as a result of having the right skills set in key management positions.

The commission has been commended as leadership that drives a culture of sound corporate governance and the maintenance of strong internal controls throughout the financial period.

Explaining the significance of the achievement, Xolile Ntuli, the NLC’s Chief Financial Officer (CFO), says the consistent attainment of clean audits was mainly attributable to the culture that is inculcated in the organisation, which seeks to foster full compliance with laws and regulations

National Lotteries Commission CFO – Mrs. Xolile Ntuli.

What’s really happening in the Department of Trade & Industry?

HOW DID NLC OBTAIN CLEAN AUDIT:


The NLC received a clean audit opinion certificate of excellence in 2018, that the Auditor-General wanted the organisation to consolidate NLPT for the first time since its inception,” says Ntuli.

The value of a clean audit:

The CFO credits consistent attainment of clean audits mainly to culture inculcated in the organisation.

Subsequent to numerous engagements during the final stages of the audit and notwithstanding the divergent views, the NLC implemented the recommendation by the
Auditor-General to consolidate,” she adds.


In March 2020, the NLC was recognised by the South African Institute of Chartered Accountants (SAICA) and awarded an Excellence in Public Finance Management Award for the NLDTF.


SAICA is widely recognized as one of the world’s leading accounting institutes. In allocating these awards, they applied stringent criteria to the entities that had already received clean audits from the Auditor General.

This announcement serves as a major contradiction to the recent narrative, which speaks to the commissions mis-management of Grant funds; as reported by Raymond Joseph in his series of articles (Gaming the Lotto), that specifically probes into the NLCs Funding Model and Distribution of Grants.

In this case, for the 2018/19 PFMA outcomes.
Criteria include, among others:

A clean audit relates to three aspects:

1. The financial statements are free from material misstatements;
2. There are no material findings on the annual performance report; and lastly,
3. There are no material findings of non-compliance with key legislation.

The National Lotteries Commission maintains that with more than 20 years of regulating the lotteries and sports pools industry, they continue to be a catalyst in changing the lives of millions of South Africans.

The Commission has reaffirmed, that it has under the leadership of the current board, continued to serve as a leading economic contributor in various sectors of the South African economy.


“We recognise, however, that the accountability and responsibility of all businesses are frequently subject to question. In our South African context, the loss of trust in both public and private organisations is stark, said the Commission in a statement. “The manifest failures of corporate governance and business ethics in this arena has only increased the need for transparency and accountability. – National Lotteries Commission.

This is a developing story… please refresh for updates.

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