A non-profit organisation that lobbied for amendments to the Lotteries Act went on to learn to the tune of tens of thousands and thousands of rands in grants after the legislation was modified.
The Southern African Youth Movement (SAYM) beneficial the introduction of a brand new approach of funding tasks by the National Lotteries Commission (NLC) to the Trade, Industry and Competition Parliamentary Committee. Instead of the NLC ready for functions, SAYM proposed the introduction of proactive funding, which allows the NLC to award a grant with out first receiving an software.
Proactive funding, which has been on the heart of the looting of the Lottery, has been suspended by the NLC’s new board.
SAYM government director Alfred Sigudhla and Sello Pietersen, who was then the organisation’s Assistant Programme Manager, gave evidence to Parliament in 2013 in assist of amendments to the Lotteries Act, together with the introduction of proactive funding.
In the years that adopted, SAYM was to obtain over R67.5 million in proactive funding for a number of tasks, together with an old age home, a drug rehabilitation centre, and an anti-drug-themed musical, which was funded to do a three-province tour. Neither the outdated age dwelling nor the rehab are operational, and the musical staged solely a handful of performances.
SAYM’s grants are all recorded in NLC annual reviews underneath a number of totally different variations of the organisation’s title. All have one factor in widespread: the involvement of Sigudhla, in accordance with each firm and Department of Social Development information. Sigudhla has loved a longstanding relationship with the NLC.
In 2014 the board of the National Lotteries Board, the predecessor to the NLC, determined to cease funding SAYM due to irregularities with its funding functions. But the bar on funding was lifted after the non-public intervention of former NLC commissioner Thabang Mampane and former board chairperson, Alfred Nevhutanda. Both at the moment are underneath investigation for the abuse of Lottery funds.
Former NLC chief threat officer Bathabile Kapumha has advised how she was pressured to withdraw SAYM from the checklist of organisations the NLC shouldn’t fund. Attorney Trevor Bailey, who was commissioned by the then-NLC board to analyze Kapumha’s suspension, mentioned in his 2015 report that she had advised him how she had been summoned to conferences with Mampane and Nevhutanda, a few of which have been additionally attended by representatives of the SAYM.
During one assembly, Kapumha advised Bailey {that a} SAYM consultant had mentioned the organisation had supported the NLC over adjustments to laws and subsequently shouldn’t be prejudiced due to irregularities with its funding functions. A supply advised GroundUp that the SAYM consultant was Sigudhla, however Sigudhla didn’t reply to questions asking him if he attended this assembly.
Nevhutanda instructed Kapumha to take away the SAYM from the checklist of organisations that the Board had determined to not fund or to discontinue funding, which she did, Bailey reported.
Kapumha stop the NLC in concern of her life quickly after she was concerned in an accident, apparently attributable to malfunctioning of her automotive’s brakes and steering.
When GroundUp despatched inquiries to Sigudhla in regards to the R67.5 million grants, he didn’t reply.
Instead, Dr Lekgotla Mafisa, chair of SAYM’s board, responded, copying in Sigudhla. He mentioned he had been “mandated” to reply to GroundUp. “The board took the decision to respond to the questions as decisions on projects are approved by the board and not management”.
“The board is happy with all projects undertaken under the leadership of the executive director unless persuaded by anybody.”
Millions yearly
Mafisa mentioned SAYM had “managed projects in excess of R3 billion over 20 years”. He mentioned funding got here from governments, worldwide funding companies, such because the United Nations, and personal donors.
Mafisa mentioned the motion had been concerned in additional than 20 building tasks with a funds of greater than R100 million “in various municipalities”.
“This is outside the funding of the NLC.”
Over the years, SAYM has acquired Lottery funding of over R67.5 million, consisting of:
- R27.5 million for an old age home in Thaba Nchu, close to Bloemfontein within the Free State between 2017 and 2020. SAYM says building of the house is full and it has been licensed by the DSD and can turn out to be operational in 2023. SAYM claimed it was unable to supply a duplicate of the licence to function as this doc would solely be obtained on the “handover” of the ability. But the Free State DSD mentioned it already had an outdated age dwelling within the space the place the SAYM outdated age house is located. When the division “was eventually consulted” in 2022, it had “advised that the old age home be repurposed to a substance abuse halfway house”, in accordance with Lindiwe Mnguni of the Free State DSD.
- Almost R27 million for a drug rehabilitation centre in Nelspruit, between 2017 and 2021. When GroundUp visited the location early in November, building was nonetheless underway on a Lottery-funded indoor sports activities centre on the sting of the rehab property. Late final yr, neighbours near the property advised GroundUp that work on the location was nonetheless persevering with;
- R15 million to stage an anti-drug musical, which was co-written and directed by Tsotsi star Presley Chweneyagae. But the manufacturing by no means undertook the key three-province tour that was promised.
- R144,000 for a analysis mission in 2011/2012 that investigated the funding of non-profits in South Africa.
Life within the quick lane
Pictures of Sigudhla on his private Facebook web page recommend he seems to get pleasure from a lifetime of luxurious and opulence. Investigative journalism group amaBhungane reported in 2020: “Before shutting down his Facebook profile, he liked to post photos of his collection of cars and bottles of Moët & Chandon, and parties with local celebrities.”
In addition to its R67.5 million Lotteries cash, the SAYM managed to gather thousands and thousands from the Department of Cooperative Governance and Traditional Affairs (Cogta) for a Community Works Programme (CWP) within the Eastern Cape in 2018, amaBhungane has reported.
Using Cogta information obtained via a Promotion of Access to Information Act software, amaBhungane revealed that “at least ten contracts worth R13.6 million were awarded to companies run by SAYM staff, their business partners, and apparent members of Sigudhla’s family.”
amaBhungane additionally reported how SAYM allegedly sourced protecting clothes for individuals within the CWP programme from a manufacturing unit that Sigudhla arrange in Pretoria to fabricate T-shirts, overalls, and hats to the specs that the tender would require. The manufacturing unit was arrange simply weeks earlier than the tender was issued.
Evidence in Parliament
Sigudhla was certainly one of two SAYM officers who gave proof at a Parliamentary listening to right into a invoice to amend the Lotteries Act.
The invoice was launched in 2013 and at last promulgated in 2015. In his presentation, Sigudhla refers to proactive funding, which has been suspended by the brand new board of the NLC. This is the primary reference to proactive funding that GroundUp has been capable of finding.
Another suggestion by Sigudhla in his presentation was a change to the way in which members of the distributing companies which adjudicate grant functions are chosen. Supported by the National House of Traditional Leaders, and the South African Youth Council, he prompt that the NLC board ought to suggest members to the Minister of Trade, Industry and Competition, who has oversight of the Lottery, for the minister to approve. The suggestion was not included in amendments to the laws, and in consequence, the members of the companies are nonetheless appointed via a public nomination adopted by interviews with candidates, after which the minister presents most well-liked candidates to the Cabinet for approval.
Commenting on amendments to the Lotteries Act, Mafisa mentioned: “SAYM, as an organisation, has no capacity to convince the entire Parliament of South Africa to change the laws to favour itself. It is impossible. SAYM formed part of a group of organisations that presented to Parliament changes that many organisations wanted to see in the legislation. Many of the matters SAYM had advocated for were not part of what Parliament decided.”
All SAYM’s Lottery-funded tasks at the moment are underneath investigation by the Special Investigating Unit (SIU), which has been investigating corruption involving the NLC since the end of 2020.
© 2023 GroundUp
This article was first revealed here.
