NLC offers relief to whistleblowers and former employees
For people like the former staff who lost jobs or the non-profit heads who endured threats, the reparations offer a chance to acknowledge their experiences and provide some relief.
South Africa.- The National Lotteries Commission of South Africa has broadened its reparation efforts to help current and former employees who faced difficulties under the organisation’s earlier leadership.
At least 12 individuals have shared their accounts with an independent panel set up to guide the NLC board. These include former employees who were pushed out after reporting irregularities in lottery grants, as well as leaders of non-profit groups who received threats or faced public attacks for speaking out against fraud. In some instances, people reported that their cars were set on fire or animals on their property were killed as apparent attempts to intimidate them into silence.
The reparations cover events from January 1, 2017, to January 31, 2023, a period when investigations revealed widespread corruption in grant distribution. The Special Investigating Unit has looked into more than 700 projects involving over R2 billion (€98.2m), uncovering cases of misused funds. The NLC spent around R70 million (€3.4m) on legal fees to challenge whistleblowers and others during that period.
Trade, Industry and Competition Minister, Parks Tau, announced in April that R20 million (€981,617) from the National Lotteries Distribution Trust Fund had been set aside for the reparation measures. The funds will provide assistance to these victimised individuals. However, current staff members are only eligible for non-monetary assistance, such as resources to aid in their recovery. Former employees may receive monetary compensation, potentially covering lost earnings or legal expenses, along with other forms of support like reference letters for job searches.
NLC Commissioner Jodi Scholtz described the effort as a way to make meaningful apologies while following the Public Finance Management Act (PFMA). He said: “We need to make amends within the PFMA. The idea is to say sorry in a way that is meaningful and for everyone. My original proposal was for staff only. But communities have also been affected. They have been hurt. We cannot just say it is business as usual.”
The process, which started nearly a year ago, involves a committee with NLC board members Beryl Ferguson and Lionel October, plus independent member Dr. M. Mosia. Independent advisors review claims and suggest actions, while the board makes the final decisions. To ensure fairness and privacy, participants often sign non-disclosure agreements.
However, delays have stalled the approval process as the NLC brought in external experts for review after internal assessments proved inadequate. But now, Scholtz says the work is “well advanced” and should wrap up soon, with the first approvals expected this month.
For people like the former staff who lost jobs or the non-profit heads who endured threats, the reparations offer a chance to acknowledge their experiences and provide some relief. One example involves a journalist who investigated lottery corruption and, after facing defamation claims and complaints from the NLC, sought an apology and a donation to animal welfare organisations on behalf of his family and publication.
The initiative highlights a push for accountability at the NLC, which now works with investigators to complete unfinished community projects tied to questionable grants. It also signals better support for those who report wrongdoing, potentially encouraging more openness in public bodies. As the board reviews the first cases, affected individuals hope for resolutions that will help them move forward.
