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ActionSA is scheduled to meet with National Lottery Commissioner, Jodi Scholtz, to address critical issues plaguing the National Lottery Commission (NLC), an essential entity mired in corruption and inefficiency, which has had devastating consequences for NGOs that rely on its funding.

South Africans are increasingly cognisant of the crucial role that NGOs play as lifelines for vulnerable communities, often stepping in to fill the gaps left by government failures. 

Regrettably, as government inefficiencies and budget constraints continue to widen these gaps, the work of NGOs becomes even more vital. However, their ability to operate is increasingly threatened by the very institutions meant to support them, such as the NLC.

While appreciating that the NLC has cautioned NGOs not to budget on lottery funding, the harsh reality is that many NGOs, already struggling with inadequate support from the Department of Social Development (DSD) and a shrinking pool of donors, depend heavily on these biennial grants to survive. 

Consequently, the persistent funding cuts from the DSD, coupled with delays in subsidy payments, have forced numerous NGOs to downsize or close projects, significantly reducing essential services to vulnerable communities across South Africa.

In recognition of the crisis facing NGOs, ActionSA’s meeting with NLC Commissioner, Jodi Scholtz, will address several pressing issues, including:

The stagnation of grant increases over the past 14 years, with 2023’s R1 billion grants falling far short of the inflation-adjusted R2.5 billion needed today.

The alarming rise in the expense-to-grant ratio from less than 5% in 2009 to a staggering 50% currently, reflecting a sharp decline in organisational efficiency.

The exponential increase in operational costs, from R50 million in 2009 to R464 million today.

The steps being taken to combat corruption and fraud within the NLC.

The reasons behind the lengthy delays in adjudicating grant applications and the measures being implemented to address these delays.

The rationale for extending the National Lottery licence held by Ithuba Holdings and the timeline for awarding the new licence.

ActionSA believes that, despite the vital role NGOs play in supporting South Africa’s most vulnerable populations, they have long lacked a strong voice in Parliament to champion their cause.

As such, ActionSA is committed to being that voice, advocating for the necessary interventions and changes to ensure that NGOs are supported rather than hindered, thereby protecting the best interests of the most vulnerable.

Issued by ActionSA Member of Parliament Alan Beesley