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South Africa

Netball Lottery Grant Frozen by NLC After Investigation

Netball South Africa

The National Lotteries Commission (NLC) has suspended further payments on a R66-million grant awarded to Netball South Africa (NSA) for a legacy project tied to the Netball World Cup 2023. This decision follows a forensic investigation that uncovered governance and oversight issues.

The grant, one of the largest allocated by the NLC in recent years, was intended to fund the construction of 65 all-weather netball courts across South Africa’s nine provinces, as well as capacity-building initiatives for umpires, coaches, and administrators. The Netball World Cup, the first held in Africa, took place in Cape Town from July 28 to August 6, 2023. The court construction project was designed to leave a lasting infrastructure legacy in both urban and rural communities.

Of the R66-million approved by the NLC, R63-million was allocated to NSA for constructing the 65 all-weather courts. R3-million was set aside for capacity-building programs, and an additional R3-million was designated for marketing and branding related to the project. Five companies were appointed through a tender process issued in September 2023, four for designing and constructing the courts, and one to serve as the national project manager with contracts valued at over R57.8-million.

To date, the NLC has disbursed R24-million of the grant, which includes R3-million paid in June 2023 for marketing and branding, and R21-million paid in March 2024 for construction activities. However, two further tranches of R21-million each have been frozen. The suspension came after concerns raised by an NLC monitoring and evaluation official in May 2024, leading to a forensic investigation.

The NLC’s findings included governance and control weaknesses in the project, deviations from standard funding requirements, and deficiencies in monitoring and oversight. The investigation revealed discrepancies in NSA’s original funding application, which initially requested R5-million to R11.9-million for infrastructure and training initiatives, including R6.9-million to construct 20 all-weather courts across four provinces at an estimated cost of R300,000 each.

Industry experts indicate that the actual cost of constructing a quality all-weather netball court typically ranges from R600,000 to R1-million, depending on various factors. Additional issues identified by the NLC included that the original proposal focused on 20 courts in four provinces, rather than the 65 courts across nine provinces ultimately funded.

There were inconsistencies between the application, business plan, and project budget. The NSA submitted only one quotation for infrastructure construction instead of the required three, and there was a failure to identify specific construction sites in the application, as well as a lack of proof of land ownership or lease agreements. Furthermore, there was insufficient evidence that NSA could implement the project.

NSA president Mami Diale confirmed that only five sites have been certified as “practically complete”: Ermelo, Tembisa, Winterveld, Hebron Technical School, and Lerato Primary School in Phuthaditjhaba. To date, NSA has paid R14.3-million to contractors. The NLC reported that progress varies by location, with some courts constructed or refurbished while others remain incomplete or delayed. Quality and compliance concerns have also been noted at several sites.

The investigation highlighted weaknesses in identifying and managing potential conflicts of interest involving service providers. Mveledzo Sports Facilities (Pty) Ltd, one of the referenced companies, is owned by Martha Mosoahle-Samm, a former captain of South Africa’s national netball team. NSA maintains that no conflict of interest occurred, asserting that procurement processes were transparent. Mosoahle-Samm stated that her company was not awarded the contract to build the all-weather courts but provided services for the supply of wooden competition floors for the World Cup.

Diale said NSA has appointed legal advisors to ensure that engineering consultants and construction companies meet their contractual obligations and that the project is completed as intended. The organization is seeking quotes from additional contractors to evaluate the cost of completing the remaining sites and may pursue legal action against those who fail to fulfill their commitments. “The current board of NSA takes a very serious view of the lack of oversight in regard to this worthy project and is determined to ensure its completion,” Diale stated.

This legacy project is part of a broader public investment in the 2023 Netball World Cup. Government expenditure on hosting the event totaled R136-million from 2018/19 to 2023/24, according to the Department of Sport, Arts, and Culture. Additional contributions included R6-million from the City of Cape Town and R5-million from the Western Cape government to support the country’s bid. The NSA has faced ongoing scrutiny from Parliament regarding governance and financial management issues related to the World Cup and its aftermath.

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