regulations to give direction on the distribution of National Lottery Distribution Trust Fund

Minister publishes regulations to give direction on the distribution of National Lottery Distribution Trust Fund

21 Jul 2010

To improve the efficiency and optimal distribution of the National Lottery Distribution Trust Fund, the Minister of Trade and Industry (the dti), Dr Rob Davies has in terms of Section 60 of the Lotteries Act, 1997, (Act No. 57 of 1997), issued regulations that provide direction and procedures to the Distribution Agencies. These regulations also streamline the processing of applications by the National Lotteries Board from application point to payment in order to make it more transparent and efficient. These regulations come into effect on 30 July 2010.

In the past years a number of concerns were raised by the public and beneficiaries of the National Lottery Distribution Trust Fund that the funds do not reach the beneficiaries on time and that there are no effective measures in place for expedient distribution of these funds. Over and above this, there were concerns that the funds are not being distributed to development of communities that really need them. It is important that the National Lottery Distribution Trust Fund be distributed in a manner that addresses developmental needs in rural, poor and under-privileged communities

The minister has therefore directed that at least 50% of the total available for distribution must go to priorities that include expansion of home based care services, development of facilities for disabled persons and substance rehabilitation and/or treatment services, sports and recreation for talent development, education designed for early childhood, adult literacy and vocational training. These funds must benefit rural development and educational needs in a meaningful manner.

Having considered the accessibility of the fund to smaller non-governmenatal organisations (NGOs) and community based organisations (CBOs), the minister has decided to do away with the compulsory requirement for first time applicants to produce audited financial statements when applying for funds. This requirement was onerous and excluded a number of deserving beneficiaries.

Organisations that received funding before from the National Lottery Distribution Trust Fund will still be required to produce such audited statement as required in the Lotteries Act, “in order to minimise the risk that may exist with the removal of this requirement, thorough checks will be done on applicants, including site visits and reference checks. In this regard, specific attention will be given to organisations that have a history of failing to account for funds received from other donors and those whose members were previously involved in misusing donor funds. Any misuse of funds intended for development of communities will not be tolerated. We call upon the National Lotteries Board and the Distribution Agencies to deal severely with people found to be misusing funds, including referring them to the police for appropriate action to be taken.” said Ms Zodwa Ntuli, Deputy Director-General, Consumer and Corporate Regulation Division.

Enquiries:
Sidwell Medupe
Tel: 012 394 1650
Cell: 078 5226801
E-mail: MSMedupe @thedti.gov.za

Source: Department of Trade and Industry

Issued by: Department of Trade and Industry
21 Jul 2010