Lottery commission stops R66m netball project payments over compliance concerns
The commission halted the remaining two tranches of R21m (€1.05m) after an internal monitoring official flagged concerns in the NSA funding application.
South Africa.- The South African National Lotteries Commission (NLC) has halted payments of a R66m (€3.3m) grant to Netball South Africa for the construction of all-weather courts. According to investigative journalism outfit GroundUp, the action followed a forensic audit that revealed compliance failures and potential conflicts of interest.
The project was conceived as a legacy of the 2023 Netball World Cup in Cape Town, aiming to deliver 65 new facilities across both urban and rural areas in all nine provinces.
Netball South Africa (NSA), the national governing body for the sport, initially requested funding between R5m and R11.9m (€250,000 to €595,000) to support infrastructure and training initiatives. It also applied for an additional R6.9m (€345,000) to build 20 courts across four provinces.
However, the commission approved a much larger amount, allocating R63m (€3.15m) for construction and R3m (€150,000) for skills development in coaching, umpiring and administration. Five companies secured tenders: four for court construction and one as national project manager. More than R57.8m (€2.89m) was earmarked for these contractors. Payments began with R3m (€150,000) for marketing in June 2023, followed by R21m (€1.05m) for construction in March 2024.
The commission stopped the remaining two tranches of R21m (€1.05m) after an internal monitoring official flagged concerns in the NSA funding application, citing inconsistencies such as submission of only one quote instead of the required three, absence of identified sites or land agreements and questions about the organisation’s capacity to manage the project.
The forensic investigation confirmed governance weaknesses, deviations from standard funding requirements and inadequate oversight. It also identified conflicts of interest involving service providers.
Netball South Africa president Mami Diale said the higher grant amount was unexpected but was clarified by the commission and the Department of Sport, Arts and Culture. She noted that the organisation has paid contractors R14.3m (€715,000) so far, while only five sites, including locations in Ermelo and Tembisa, have been certified as practically complete.
Diale confirmed that NSA is now seeking quotes from other contractors to complete the remaining sites and intends to take legal action against those who did not meet their obligations. She said: “The current board of NSA takes a very serious view of the lack of oversight in respect of this worthy project and is determined to ensure that the project is completed, as originally envisaged.”
The payment freeze has prompted involvement from the Special Investigating Unit, which is examining the grant as part of its ongoing review of National Lotteries Commission funding. In recent months, the unit has recovered funds in other cases, including R14m (€700,000) from a cultural village project and R70,000 (€3,500) linked to a 2016 Olympics event. These actions reflect continued efforts to address misuse of lottery funds, which are raised from public ticket sales and directed towards community and sports support.
The situation adds to existing concerns about accountability at the National Lotteries Commission and within Netball South Africa. The organisation faced leadership changes in 2025, including a suspension over financial allegations, and received parliamentary criticism for unclear spending related to the World Cup.
With public money involved, there is continued expectation for transparent reporting on how lottery grants support grassroots sports development.
