Caroline Kongwa, the Chief Strategic Advisor of the National Gambling Board (NGB) for the past six years, resigned earlier this month after an independent audit revealed significant findings. The NGB oversees South Africa’s approximately R60-billion gambling industry.
Audit Findings
The audit, conducted by TSU Investigation Services, found that performance bonuses paid to Kongwa during her tenure were not approved according to the NGB’s performance management policy, categorizing them as irregular expenditure. Additionally, expenses related to Kongwa’s international travel were also flagged as potentially irregular.
Government Response
Minister of Trade, Industry and Competition Parks Tau addressed questions from Democratic Alliance MP Toby Chance regarding the audit’s implications. When asked about possible disciplinary or criminal actions stemming from the investigation, Tau stated, “Following receipt of the investigation report, the minister has appointed legal representation to advise him on the way forward. The minister is currently engaging with legal counsel on the course of action.”
Kongwa was initially appointed as a joint administrator alongside Tumelo Baleni after the NGB’s CEO resigned in April 2014. This move followed a forensic audit that uncovered maladministration and wasteful expenditure, leading to the suspension of the board by former minister Rob Davies. Since then, the NGB has been without a board for 11 years.
In response to another inquiry, Tau confirmed that the process of selecting new members for the National Gambling Board is underway but has not yet concluded. Tau’s spokesperson, Kaamil Alli, did not respond to Ground Up’s questions after previously agreeing to provide information.
Despite facing internal opposition, Kongwa was appointed Chief Strategic Advisor in 2019, a position that did not previously exist. In 2024, she earned a total of R3.4 million, which included bonuses and benefits, an increase of R800,000 from the previous year. For context, South Africa’s Deputy President earned R3.16 million, while ministers received R2.68 million, excluding perks.
Kongwa’s compensation in 2024 included a salary of R2.5 million, a 13th cheque of R212,825, and a performance bonus of R510,781. In 2023, her total earnings were R2.6 million, which included a R196,945 13th cheque and performance bonuses totaling R212,283.
Kongwa confirmed her resignation to Ground Up, stating, “The reasons for my resignation are personal and private and not for public consumption.” She declined to comment further, advising the media to direct inquiries to the Department of Trade, Industry and Competition (DTIC) and the NGB.
Anonymous whistleblowers have expressed concerns about governance issues within the NGB and the DTIC. One whistleblower revealed that there have been reservations about decisions made since 2018, including the creation of Kongwa’s position. Another shared a letter sent to the DTIC in 2023, highlighting the lack of urgency in appointing a Board of Directors for the NGB, which has led to significant governance gaps.
Conclusion
Kongwa’s resignation and the findings from the audit raise important questions about governance and accountability within the NGB. The ongoing investigation and appointment process for a new board will be crucial for the future of South Africa’s gambling industry.
