The National Lotteries Commission (NLC) is under fire after a damning Auditor-General report revealed a R957-million underspend in grant funding for 2023/24, alongside persistent mismanagement. Presented to Parliament’s Standing Committee on Public Accounts on May 13, 2025, the report issued a qualified audit, highlighting weak internal controls, non-compliance, and delays in grant processing. Vacancies in key roles, including the Chief Operating Officer, and a single, overstretched Distribution Agency committee stalled progress, leaving critical community projects unfunded. The NLC’s failure to deliver reflects over a decade of corruption and inefficiency, despite recent leadership changes, raising alarm about its ability to serve South Africa’s vulnerable communities.
The audit uncovered three major irregularities, including R6 million paid for a non-existent Soweto sports complex and R26 million for an incomplete KwaZulu-Natal old age home, with an additional R13 million squandered on an ineffective service provider. Grants were often approved without signed agreements or met conditions, and the NLC sold assets to staff without offering them to non-profits, breaching regulations. Poor record-keeping plagued financial statements, inflating audit costs and obscuring transparency. The removal of a key performance target—to process grants within 150 days—further eroded accountability, as the NLC admitted it couldn’t meet this goal. These lapses, coupled with uninvestigated irregular expenditure, paint a picture of an organisation struggling to recover from systemic rot.
Despite some progress, such as introducing site visits and policy tweaks, the NLC’s challenges persist. High vacancy rates in legal, finance, and ICT divisions hamper operations, while the suspension of proactive funding—a mechanism previously exploited for corruption—has not been reinstated. The Auditor-General urged stronger controls, credible reporting, and oversight to restore trust. With a new board and commissioner since 2022 and 2023, the NLC has taken steps to address past corruption, but the audit suggests a long road ahead. As South Africa grapples with social needs, the NLC’s inability to disburse nearly R1 billion in grants undermines community development, demanding urgent reforms to ensure public funds reach those who need them most.