National Lotteries Commission warns North West NPOs of US$7,212 funding scam
The commission received reports from two organisations after an individual allegedly used project details to make fraudulent funding approaches.
Key takeaways:
- South Africa’s National Lotteries Commission (NLC) has warned NPOs in North West province about an individual posing as an NLC employee.
- The caller allegedly offers R120,000 (US$7,212) in funding in exchange for banking details and organisational information.
- The NLC said it received reports from two organisations, one in Ganyesa and one in Rustenburg.
- The commission said it does not use agents for grant applications and does not charge fees to process applications or release funding.
South Africa.- The National Lotteries Commission (NLC) has warned non-profit organisations (NPOs) in South Africa’s North West province about a suspected impersonation scam involving an individual offering R120,000 (US$7,212) in funding in exchange for banking details and organisational information.
In a fraud alert, the commission said an individual had reportedly been contacting NPOs while posing as an NLC employee. The caller allegedly provides organisations with their project numbers and funding amounts before asking them to disclose banking details and other information about their organisations.
The NLC said it had received reports from two organisations about the suspected scam. One was based in Ganyesa, while the other was in Rustenburg. The commission advised organisations that receive calls or emails from the individual not to respond or disclose any information. It urged affected organisations and anyone who encounters the suspected fraudulent approach to report it through its fraud hotline.
The commission has previously warned grant applicants against individuals claiming to act as intermediaries to secure funding. Its anti-fraud guidance states that the NLC does not employ agents to facilitate grant applications or payments and does not charge applicants fees to process applications or release approved funding. The commission has also advised organisations to verify suspicious funding offers directly through its official channels rather than relying on information supplied by individuals claiming to represent it.
The warning comes as the NLC continues to organise education and awareness workshops for civil society organisations across South Africa, providing guidance on its grant application processes, funding requirements, governance standards and the responsibilities of grant beneficiaries. The commission said these engagements are designed to help applicants understand its funding requirements and become familiar with the procedures for accessing lottery grants.
Frequently asked questions (FAQs)
- Does the National Lotteries Commission charge fees for grant applications? No. The NLC said it does not charge applicants fees to process applications or release approved funding, and it does not employ agents to facilitate grant applications or payments.
- How can NPOs check whether an NLC funding offer is genuine? The commission advised organisations to verify suspicious funding offers directly through its official channels rather than relying on information supplied by individuals claiming to represent it.
- What should organisations do if they are contacted by the suspected scammer? The NLC said organisations should not respond or disclose any information, and should report the approach through its fraud hotline.
