PRESS RELEASES
10/16/2002
Response to the letter published in the Star
Dear Sir,

In response to P D Misnun’s letter that was published in the Star on Tuesday, October 15, 2002, I would like to explain what happens to the money generated by the National Lottery for Good Causes.

There are four entities involved in the process:

  • The National Lotteries Board (NLB), as the Government appointed regulator, is responsible for overseeing the whole lottery process.


  • Uthingo Management, the licensed operator, whose role it is to generate funds from games such as ScratchCards and LOTTO and to maximise the revenue for Good Causes.


  • The National Lottery Distribution Trust Fund (NLDTF) is the fund into which Uthingo transfers funds, from lottery ticket sales, earmarked for Good Causes, on a weekly basis.


  • The Distributing Agencies are appointed by the Minister of Trade and Industry to evaluate applications for funding and allocate money to Good Causes.


    • Policy for the allocation of funds is formulated by the Minister of Trade and Industry, in conjunction with the NLB and Distributing Agencies. Since the start of the National Lottery, R1,6bn has been raised for Good Causes.

    Of this, approximately R0,5bn has already been allocated to beneficiary organisations. In terms of the Lotteries Act, Good Cause monies can only be paid out to “juristic persons”. In other words, legal entities such as NGOs, sports bodies, etc.

    Approximately R1,1bn is still held in trust in the NLDTF, where it is earning interest at prime rates. All monies in the NLDTF (inclusive of interest earned) will be used for purposes as identified by the Lotteries Act. The Office of the Auditor-General conducts an annual audit on both the National Lotteries Board and the National Lottery Distribution Trust Fund.

    It is not quite true to say that the funds in the NLDTF belongs to the public as mentioned in the letter, but it is certainly held in trust for those beneficiary causes that meet the qualifying criteria. Lists of beneficiaries can be viewed on our web site www.nlb.org.za. In addition, our Annual Reports are tabled in Parliament, posters are put up at retailers and details are issued to the media for publication.