/ MEDIA STATEMENT / The content on this page is not written by Polity.org.za, but is supplied by third parties. This content does not constitute news reporting by Polity.org.za.

Collusion between government officials, non-profit organisations and auditing firms in the theft of state resources that have been earmarked to improve the lives of poor South Africans needs to stop.

The Portfolio Committee on Trade, Industry and Competition condemned such practices wherever they occur in the public service. The committee received an update briefing today on investigations and cases related to the corruption and governance malpractices that occurred at the National Lotteries Commission (NLC).

The Chairperson of the committee, Mr Mzwandile Masina, said the committee appreciated the briefings received on the investigations conducted by the Directorate of Priority Crime Investigations, the Special Investigations Unit and the National Prosecuting Authority, as well the work done by the new board to improve systems at the NLC.
 
Mr Masina said: “The rot has set in and is perpetuated by the conduct of officials and a network of other collaborators, including auditing firms and non-profit organisations. If left unchecked, malfeasance has a potential to collapse this social benefit institution, meant to enhance the work of government through availing funding to the needy, in support of developmental projects. The NLC is such a prestige funding institution we cannot afford to lose.

“There is a need for improved detection systems that can pick up corrupt behaviour at application phase, and if there are deficiencies or missing information on any application that is submitted,” he stated. He said the NLC manifestly lacked controls and systems that can resolve sophisticated collusion and collusive corrupt behaviour.
 
The committee heard from the law enforcement entities that cases have been opened but synergy is needed in the areas of referrals, proclamations and investigations. The committee also heard that the corruption was perpetuated with the assistance of auditing firms and distribution agencies.

The committee also called on entities to establish a stringent applications process rather than seeking to deal with matters through prosecution.

Mr Masina said it seemed that public representatives had abdicated their responsibility and handed public power to wrong hands, who abused that power. He said law and policy needs to spell out what a good cause worthy of being funded was, without necessarily changing the law.
 
“Entities are established to advance the developmental objectives of the developmental state that South Africa is, and not the crime of greed, which seems to have set in on our society. People steal to buy cars and big houses; this is a crime of greed.”
 
He urged law enforcement agencies not to shy away from holding people accountable. “Prevent a situation where we create this entity as crime scene. There is no right for those who are there to substitute wrong with wrong and think we will not hold them accountable. If nothing is done, we will be back here to investigate in the next five years. There are issues at the NLC and they need to be resolved.”

The committee was also concerned by the length of time it took to investigate matters after referrals.

Issued by the Parliamentary communication Services on behalf of the Chairperson of the Portfolio Committee on Trade, Industry and Competition, Mzwandile Masina