An investigation into a R66-million lottery grant to Netball South Africa has raised concerns about possible “maladministration and/or gross negligence” by the agency responsible for approving the funding. The report also suggests that litigation may be necessary to recover any losses that may have occurred. The grant was intended to fund the construction of all-weather netball courts across all nine provinces, as a legacy linked to the 2023 Netball World Cup held in Cape Town.

However, the project remains unfinished and has been marred by allegations of irregularities. The National Lotteries Commission (NLC) commissioned Open Water Advanced Risk Solutions to investigate the grant awarded by the NLC’s Sport and Recreation Distributing Agency (SRDA). Open Water Advanced Risk Solutions found conduct that was “indicative of maladministration and/or gross negligence” by the SRDA. It advised the NLC to consider civil legal recovery against the members of the former SRDA “jointly and severally” if any losses are confirmed.

The NLC has provided its grant-related records to the Special Investigating Unit (SIU), including a recording of the meeting where the grant was approved. The NLC also said it has implemented “consequence management” for officials identified in the forensic report under its disciplinary policy, but it declined to say which officials were disciplined or to share the outcomes. Former SRDA member Dr Harold Adams, who says he took part in the decision to award the grant, disputes the findings. He argues that Netball SA submitted a “below par” application under a “targeted call” covering only four provinces.

Adams also claims that the proposed budget of R300,000 per court was unrealistic. He says the SRDA ultimately approved a significantly expanded plan for the Netball Local Organising Committee (LOC) World Cup Legacy programme, which aimed to roll out netball across all nine provinces—as promised by NLC authorities in 2018/2019. Adams claims the SRDA committee then decided to allocate about R60-million towards infrastructure for the Netball LOC legacy project.

He further says the SRDA required two separate grant agreements to clarify roles, and that monitoring and evaluation should ensure key prerequisites—such as land and plans—were in place before money was paid, along with an acceptable maintenance plan. Adams says Netball SA originally applied for R11.9-million for infrastructure and training, including 20 all-weather netball courts in four provinces. Instead, he says the SRDA used its discretion to expand the grant by more than five times the initial request.

According to the tender issued by Netball SA in September 2023, the expanded funding included: R60-million for 65 courts across all nine provinces, R3-million for marketing and branding of the legacy programme, and R3-million for “capacity building” (skills development for umpires, coaches, and administrators) However, after paying R3-million in June 2023 for marketing and branding and R21-million in March 2024 for construction, the NLC halted further payments of the next two tranches of R21-million each.

The NLC says the freeze followed concerns flagged by an NLC monitoring and evaluation official regarding issues with the Netball SA application and how it was adjudicated. This prompted the NLC to commission Open Water Advanced Risk Solutions to conduct a forensic audit. The NLC previously said progress differed by location: some courts were constructed or refurbished, while others were incomplete, delayed, or not handed over. It also said quality and compliance problems were identified and formal handovers remained outstanding in some cases.

Netball SA president Mami Diale said that the organization was surprised by the increased funding and said only five sites had been certified as “practically complete”. Netball SA said it paid contractors R14.3-million before further payments were frozen. Five companies tendered successfully, four for court design and construction, and a fifth as the national project manager.

The combined value allocated to the companies was over R57-million, and the SIU is scrutinising these contracts. The R3-million marketing and branding contract is also under investigation. Open Water said SRDA members have a fiduciary duty to act in the best interests of the NLC and the intended beneficiaries of the National Lottery Distribution Trust Fund (NLDTF).

It added that where maladministration and gross negligence lead to financial damages, SRDA members may be held liable—either fully or in part—in civil recovery action. It said the NLC may consider civil recovery once losses are identified and quantified. The grant was adjudicated by three SRDA members: Mveli Ncula (chair), Adams, and Raymond Mali. A senior NLC administrator attended but did not participate in the adjudication decision. Ncula and Adams’ SRDA terms ended on 30 April 2023, while Mali’s term ended on 30 April 2024.

Adams says he has not received the report and that the outcome is “grossly unfair.” Neither Mali nor Ncula responded to questions sent via WhatsApp about the report. Adams places blame on the NLC, saying monitoring and evaluation officials did not do their job properly. He argues that because his and Ncula’s SRDA contracts ended on 30 April 2023, NLC personnel should have contacted them to clarify any uncertainties.

He also claims Netball SA should never have been allowed to implement the legacy project and says that after the SRDA members left, NLC officials were responsible for enforcing the SRDA’s conditions. According to Adams, the NLC did not implement the conditions set during the SRDA meeting. In response, the NLC said grant applications are adjudicated by the SRDA, which carries out its duties independently from the NLC commissioner under the Lotteries Act.

It said the commissioner signs off on grant applications adjudicated and quality-assured by SRDA members, and that her delegation allows her to approve applications above specified amounts adding that the Netball SA grant was signed off based on SRDA recommendations. Open Water Advanced Risk Solutions, has previously been embroiled in controversies, including accusations of biased reporting in connection with its work on an Eastern Cape Development Corporation investigation.