NLC whistleblowers slam ‘degrading’ reparations offer
During the course of the inquiry, whistleblowers reported threats, arson attacks on vehicles and costly legal battles that left many in financial hardship.
South Africa.- Whistleblowers and former staff members of the National Lottery Commission (NLC) who exposed corruption in the past administration’s procurement and grant-awarding processes have expressed disappointment at the reparations package offered by the commission.
The conclusion of the reparations process follows years of investigations into widespread racketeering at the NLC, where the Special Investigating Unit (SIU) has identified up to R2bn (€105m) in illegal grants awarded to non-profit organisations since 2013. During the course of the inquiry, whistleblowers reported threats, arson attacks on vehicles and costly legal battles that left many in financial hardship.
The reparations involved 18 participants, with one settlement reached. The affected individuals had been initially promised monetary rewards but at a later stage of the reparations process were denied direct financial payments. Instead, they were offered psychological support, wellness services, educational sponsorships and, in some cases, grocery vouchers. Non-staff whistleblowers were ruled ineligible and advised to apply for project funding through standard NLC channels.
In a joint statement, the informers described the offers as “degrading” and “cold charity”, saying they had been led to believe they’d receive meaningful financial support. Social worker John Clarke noted: “This was essential to restoring livelihoods destroyed as a direct consequence of our whistleblowing against systemic corruption at the NLC.”
The group has indicated plans to challenge the decision. However, NLC commissioner Jodi Scholtz cited legal constraints as the reason for the decision. She said: “No funds were allocated for compensation, whether directly or indirectly, as the Public Finance Management Act and National Treasury rules prohibit unauthorised expenditure.” She added that a formal apology could be seen as an admission of liability, opening the door to civil claims.
The commissioner explained that the process prioritised “restoration over compensation, healing over financial settlement, and fairness, dignity and responsible stewardship of public funds”.
An initial parliamentary response from Parks Tau, Minister of Trade, Industry, and Competition, indicated R20m (€1.05m) had been ring-fenced for individual measures, but Scholtz clarified that the R10m (€525,000) budgeted in the 2024/25 annual plan covered only administrative costs, such as independent assessments and legal oversight.
Democratic Alliance MP Toby Chance, who has advocated for the whistleblowers, called the outcome an “about-turn” on earlier commitments. He said: “At great personal cost to themselves and their families, these whistleblowers revealed a systematic undermining of good governance.”
