BARRY STREEK and OWN CORRESPONDENT, Johannesburg | Friday
THE state lottery had accumulated sales of more than R2bn by the end of last year, but only R4,1m has been paid out to 80 charities in emergency funding, Minister of Trade and Industry Alec Erwin has disclosed.
This represents just more than 1% of the money available to charities from the total amount accumulated from sales.
The Star newspaper reported that Uthingo, the privately owned operator of the Lotto, will receive at least R375m from Lotto funds earmarked for good causes to cover its start-up costs.
Instead of the 30% share it was understood would go to charities, sports and arts and culture, only 16,57% is going into the kitty of the National Lottery Distribution Trust Fund (LDTF), said the newspaper.
Despite making appointments to some of the boards of distribution agencies – bodies that make recommendations about deserving charity organisations – there is still no plan from the Lotteries Board or the Department of Trade and Industry on what steps need to be taken to ensure speedy distribution of the lotterys proceeds.
The Democratic Alliances Nigel Bruce says the governments inability to distribute funds timeously means some charities have had to curtail their activities and others may soon have to close down.
He blames the delay on a black empowerment company connected to the African National Congress elite while the poor, the sick and the suffering are abandoned.
Erwin, who was replying to questions tabled in the National Assembly, said interest earned from unclaimed prizes was paid to the LDTF.
In terms of the law, after a year unclaimed prizes are split equally between the operator and the LDTF.
Erwin said while the Cabinet did not make a decision on the exact amount of funds that should accumulate before payments are made, the principle informing the need to accumulate funds came from a pragmatic approach to developing a sustainable and predictable funding environment for NGOs and charities in South Africa.
ZA*NOW:
Lotto soaks up shoprite profits February 25, 2001