Cape town: President Cyril Ramaphosa has signed an amendment to the National Lotteries Commission (NLC) proclamation, broadening the scope of the Special Investigating Unit’s (SIU) ongoing investigation into the affairs of the commission. The extension now covers procurement contracts and is set for a five-year investigation period.
According to South African Government News Agency, the SIU announced that Proclamation R293 of 2025 modifies the original investigation mandate (Proclamation R. 32 of 2020) in two significant ways. It extends the investigation’s timeframe, allowing the SIU to address allegations of serious maladministration from November 2020 up to 10 October 2025, effectively adding five years to the investigation period. Furthermore, it introduces 21 new categories of procurement and contracting to the investigation, including services where it is alleged that procurement processes were bypassed, and public funds were misappropriated.
The amendment is a response to the allegations received by the SIU during its investigation and the findings necessitating an extended scope and time. The initial investigation, which was divided into three phases valued at approximately R2 billion, is concluding its third phase and will proceed with civil litigation.
Among the newly added matters under investigation are the appointment of a panel of attorneys’ firms and legal practitioners in terms of Bid NLC/2020-05, and the appointment of a service provider for a Comprehensive Employee Wellness Programme for the Employees of the NLC, in terms of RFP/2021-15. Additional matters include the extension of the appointment of Metrofile for off-site document storage and delivery, procurement of Electronic Board Pack services, advertorial services on Back to Basics Magazine, deviations from normal procurement processes, and services rendered by Regency Apartment Hotel and Ndila Transfers.
The SIU is authorised to investigate whether these procurement or contracting services were conducted in alignment with fairness, equity, transparency, competitiveness, cost-effectiveness, and compliance with applicable legislation, Treasury instructions, or the NLC’s policies. The investigation will also address any related unauthorised, irregular, fruitless, and wasteful expenditure by the NLC or the State.
In accordance with the Special Investigating Units and Special Tribunals Act 74 of 1996 (SIU Act), the SIU will refer any evidence of criminal conduct uncovered during its investigation to the National Prosecuting Authority (NPA) for further action. The SIU is also empowered under the SIU Act to initiate a civil action in the High Court or a Special Tribunal to address any wrongdoing identified, stemming from corruption, fraud, or maladministration.
Beyond targeting maladministration, corruption, and fraud, the SIU aims to identify systemic failures and recommend measures to prevent future losses.