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Lotto Funding Crisis: Struggle to Hold NLB Accountable
The frustrations experienced by non-governmental organisations (NGOs) when applying for lotto funding came under spotlight when a group of NGOs marched to the National Lotteries Board (NLB) offices on 27 January 2012 in Pretoria.
The march highlighted NGOs’ concerns regarding the Lotto which are well-documented in a study undertaken by the Funding Practice Alliance, the class action to the Western Cape High Court and other related issues.
Shelagh Gastrow of Inyathelo - The South African Institute for Advancement argues that the march highlighted the growing national anger over the way the NLB distributes public funds. Gastrow slammed the NLB for its “Epic failure of the board to fulfil its stated mandate to distribute funds to NGOs that make a difference to the lives of all South Africans, especially the most vulnerable.”
The situation has also irked the fury of the opposition, Democratic Alliance, which expressed the view that there is a ‘growing trend’ where needy charities are being overlooked by the NLB in favour of African National Congress-aligned organisations. The DA also questions the way board members of distributing agencies are appointed.
Meanwhile, government’s intention to amend the National Lotteries Act to speed up the processing of applications for funding is an encouraging step in the right direction. However, we hope that such amendments will translate in the removal of existing bottlenecks.
Below are some of the articles previously published on NGO Pulse in relation to the Lotto issue:- March to the Lotto Offices
- NLB CEO Resigns
- Charities to Demand Answers Over NLB Grants
- Department to Amend the Lottery Act
- Lotto Board Won’t Pay for Audit – Nevhutanda
- NLB Blamed for NGO Closure
- NLB to Act on Alleged Irregularities
- NGOs Urged to Bring Graft Proof
- NLB Failure is Also Minister’s Fault
- NGOs Lose Funding to ANC – DA
Charities Lose Funding Due to Infighting
Three nonprofit organisations in the skills, social and environmental sectors could have received R58 million had it not been for the infighting between two Lotto bodies.
However, the tensions between the National Lotteries Board (NLB) and the distributing agencies have led to a situation where several NGOs have been unable to access funds.
An internal document also reveals how the NLB reversed a decision by one of the distribution agencies to fund three of the many dependent organisations last year.
To read the article titled, “Charities lose R58m because of Lotto infighting,” click here.Source:Sowetan LiveNGO Faces Closure Over Funds
Thousands of orphans in Durban will have to wait a long time to get foster parents as Big Shoes, a NGO that expedites the process, is short of funding and set to close its adoption programme at the end of the month.
KwaZulu-Natal regional manager, Tracey Brand, says that the organisation is donor-funded and contracts with previous donors had expired.
Brand states that the organisation expedites the adoption process for children by screening the children quickly and conduct HIV testing and development assessments. In addition, it provides counselling until the child is eligible for the adoption process, and we do all of this with one doctor.
To read the article titled, “Orphan NGO faces closure over funds,” click here.Source:Independent OnlineIdasa, Black Sash, Face Funding Crisis
Two long-standing organisations, Idasa and the Black Sash, say they are losing millions in funding, forcing them to close down crucial projects and retrench staff.
The two organisations say part of the problem in terms of securing international funding is that South Africa is no longer seen as being among the poorer countries.
Black Sash national director, Marcella Naidoo, points out that, “It’s a pity and a tragedy that we won’t be able to do the substantive work that we’re used to. We have always been resilient but this time, it’s particularly sad.”
In the same vein, Idasa’s executive director, Paul Graham, states they were forced to retrench 70 staff members over the past year.
To read the article titled, “Idasa, Black Sash lose millions in funding,” click here.Source:Independent OnlineMinister Also to Blame for NLB Failure
The march by NGOs against the National Lotteries Board (NLB) showed the growing national anger over the way the NLB distributes our public funds, according to Shelagh Gastrow, one of the founders of Inyathelo, the South African Institute for Advancement.
Gastrow states that the lack of accountability and transparency over the way the lottery operates and its random decision making, poor management and inefficient administration is devastating the essential work of many wonderful NGOs in the country.
She argues that one of the key problems is that the distribution agencies that make the decisions about the ‘lucky NGOs’ that receive grants do not report directly to the NLB itself.
To read the article titled, “Failure of lotteries board is also fault of Minister Davies,” click here.Source:Independent OnlineNLB to Act on Alleged Irregularities
The National Lotteries Board (NLB) has promised to investigate allegations of irregularities against it.
NLB Board chairperson, Alfred Nevhuthanda, promised corrective action after receiving a memorandum from hundreds of protesters against the NLB in Pretoria.
"We take allegations made in the media seriously -- claims of request(s) for bribes, losing information (about applicants), and irregular grants. Remedial action will be taken where needed," he explained.
To read the article titled, “Lotto promises corrective action after protest,” click here.Source:Times LiveDepartment to Amend the Lottery Act
An official from the Department of Trade and Industry says the department will introduce a legislation to amend the National Lotteries Act to expedite the processing of applications for funding.
Department of Trade and Industry deputy director-general, Zodwa Ntuli, says that the thrust of the amendments would be to remove the bottlenecks in the speedy processing of funding applications.
She states that application would be invited at any time of the year, to avoid the once-a-year window, which resulted in congestion.
To read the article titled, “Lotteries Act amendments aimed at bottlenecks,” click here.Source:Business DayNLB CEO Resigns
The National Lotteries Board (NLB) spokesperson Sershan Naidoo has declined to confirm or deny reports that chief executive officer, Vevek Ram, has resigned.
However, Naidoo later promised that the NLB board will ‘shortly’ issue a statement on the matter.
Meanwhile, the Democratic Alliance spokesperson, Jacques Smalle, says that Ram's letter of resignation was received and accepted by the NLB.
Smalle, who describes the latest development as ‘a step in the right direction’, states that, "In the last year especially, the NLB has begun operating increasingly like an ANC slush fund even as deserving charities and NGOs struggled to access funding."
To read the article titled, “Lotteries board CEO said to have quit,” click here.Source:Fin24Charities to Demand Answers Over NLB Grants
NGOs are demanding that grants made by the National Lotteries Board (NLB) during the past three years be subjected to a forensic audit and that board members be subjected to a lifestyle audit.
The demands are contained in a memorandum, which is due to be handed over when representatives of NGOs are expected to march on the NLB offices on 27 January 2012.
In the memorandum the NGOs ask that grants in excess of R5 million be fully disclosed to the public, and that applications for grants can be submitted all year round, instead of once a year.
Meanwhile, lottery spokesperson, Sershan Naidoo confirmed that they have received notification of the planned march.
To read the article titled, “Charities demand to know where Lotto money is going,” click here.Source:Sowetan LiveNGOs to Face Bleak New Year
Many NGO employees face a new year without work and others have to tighten their belts this festive season as essential European aid funding dries up, leaving the future of a number of civil society programmes in jeopardy.
The South African National NGO Coalition (SANGOCO) Western Cape says the NGO sector is facing a crisis as long-time European donors curtail aid to South African organisations, partly due to the deepening global financial crisis, and partly due to South Africa’s own economic development.
SANGOCO Western Cape programme manager, Jacky Thomas, says that European donors now saw South Africa as a middle income country and are shifting their focus to North Africa and more impoverished nations within the Southern Africa Development Community.
To read the article titled, “Bleak new year for NGOs,” click here.Source:West Cape News
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