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NLC Expands Reparations Program for Current and Former Staff

SIU Wins R2.96m Recovery Order Over Looted Lottery Grant

The National Lotteries Commission (NLC) has extended its reparations process to include current staff who experienced “hurt” and former employees who “suffered harm” under the previous administration.

So far, at least a dozen people have provided evidence to a two-person independent panel set up to advise the NLC board. This includes former staff members who were forced out of the NLC after exposing corruption, as well as one individual who was denied a fair Labour Court dismissal award. Others seeking reparations include leaders of non-profit organizations who faced threats and defamation after revealing how their groups were exploited for fraudulent lottery grants.

In two notable cases, vehicles belonging to whistleblowers were set on fire by arsonists. Additionally, a late-night attack resulted in the slaughter of at least 30 geese, peacocks, ducks, swans, and chickens, which was perceived as an intimidation tactic against those speaking out.

In a June 2023 interview with GroundUp, NLC Commissioner Jodi Scholtz stated that the reparations process needed to be “lawful and authentic.” She emphasized the importance of making meaningful amends within the Public Finance Management Act (PFMA), acknowledging that communities have also suffered and that it cannot be “business as usual.”

The reparations process began nearly a year ago, and after several delays, the NLC board is expected to approve compensation for the first group of applicants this month. Minister of Trade, Industry and Competition Parks Tau announced in April that R20 million had been set aside for these reparative measures, funded by the National Lotteries Distribution Trust Fund. The National Treasury has been informed about this allocation as part of the NLC surplus.

The final decision on compensation will rest with the NLC board’s reparations committee, which includes board members Beryl Ferguson and Lionel October, along with Dr. M. Mosia, an independent member of the NLC board’s Human Capital Management and Social Ethics Committee.

Eligibility for reparations covers the period from January 1, 2017, to January 31, 2023. Current staff will not receive financial compensation. Instead, the NLC aims to support their healing journey through non-financial reparative initiatives. Applications from staff will be reviewed by independent advisors, who will recommend appropriate reparative measures for valid claims.

Details regarding financial compensation for former employees remain unclear. Scholtz explained the nearly year-long delay by stating that the NLC is undergoing a rigorous independent assurance process. The reparations process is described as restorative, potentially involving both financial and non-financial measures.

DA MP Toby Chance, who has been monitoring the process, criticized the delays caused by bureaucratic red tape. He noted that, after pressure from Parliament, the NLC acknowledged that internal procedures were insufficient, necessitating the appointment of an independent service provider to manage the reparations process, which further delayed it. Chance urged Scholtz to ensure that reparations are processed quickly to alleviate the financial and emotional burdens on those affected.

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