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Cape Town - The National Lotteries Board is unable to distribute R2bn in surplus funds to poor beneficiaries.
The board's chief executive, Professor Vevek Ram, says that enormous obstacles are preventing the board from distributing the money.
From 2008 to 2010, R3.7bn was available for distribution to beneficiaries, but could not be disbursed.
Over the past nine years since the establishment of the board some R6.8bn has been paid out.
Ram put the blame for the surplus money on the distribution agencies, in particular. The board, which should largely play the role of a regulator, holds the money in a trust, and the distribution agencies, which are appointed by the Minister of Trade and Industry, select the beneficiaries. But these two bodies have for years been got bogged down over the nature of their actual roles.
Ram says it's impossible to examine all applications received. Last year there were more than 1 000 that they were unable to accommodate.
In a submission outlining the board's problems to the portfolio committee on trade and industry, he said the volumes result in beneficiaries having to wait up to 18 months for allocations.
Ram said that smaller non-governmental organisations do not have the money for a compulsory audit of their books, which they have to submit together with the application form.
Nomfundo Maseti, deputy director-general of the regulations division at the Department of Trade and Industry, said plans are under way to relax issues such as the requirement for two years' audited statements (for small organisations).
Weekly Lotto ticket sales can amount to R30m.
- Sake24.com
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