WeeklySA_AdminSCRUTINY: A forensic probe into R66-million lottery grant awarded for post-World Cup netball infrastructure has triggered possible steps to recover the funds, amid allegations of maladministration, stalled projects and ballooning of the amount from an initial R11.9-million request…
By Raymond Joseph
A forensic investigation into a controversial R66-million National Lotteries Commission (NLC) grant awarded to Netball South Africa (NSA) has recommended that authorities consider litigation to recover possible losses linked to the troubled project.
The grant, intended to fund the construction of all-weather netball courts across South Africa as part of the legacy programme for the 2023 Netball World Cup in Cape Town, is now under scrutiny by the Special Investigating Unit (SIU).
The NLC commissioned forensic firm Open Water Advanced Risk Solutions to investigate the funding process after concerns were raised over the adjudication and implementation of the project.
According to findings seen by GroundUp, the investigators pointed to conduct “indicative of maladministration and/or gross negligence” by members of the NLC’s Sport and Recreation Distributing Agency (SRDA), which approved the grant.
The report further recommended that the NLC consider civil legal action against former SRDA members if financial losses are ultimately identified and quantified.
Only five courts have so far been certified as practically complete despite more than R21-million already having been paid out…
At the heart of the controversy is the dramatic increase in funding. Netball South Africa initially applied for R11.9-million to build 20 all-weather courts in four provinces and to support training activities. But the SRDA exercised its discretion and increased the allocation more than fivefold, eventually approving roughly R66-million.
The expanded funding package included R60-million for the construction of 65 netball courts across all nine provinces, R3-million for marketing and branding linked to the legacy programme, and another R3-million for training umpires, coaches and administrators.
However, despite millions already paid out, the ambitious project remains far from complete. After an initial R3-million was paid for branding and marketing in June 2023, and a further R21-million for construction in March 2024, the NLC halted the remaining tranches of funding after concerns were flagged by an internal monitoring and evaluation official.
The concerns prompted the forensic investigation now being examined by the SIU.
The NLC acknowledged that several projects were incomplete, delayed or failed to meet quality and compliance standards. Formal handovers for some courts have also not taken place.
NSA president Mami Diale reportedly said the federation itself had been surprised by the dramatic increase in funding and confirmed that only five sites had been certified as “practically complete” so far.
According to the report, more than R57-million had been allocated to five companies — four tasked with designing and constructing the courts, and another appointed as national project manager.
Those contracts, along with a separate R3-million marketing contract, are now being scrutinised by the SIU. Three SRDA members — chairperson Mveli Ncula, Dr Harold Adams and Raymond Mali — adjudicated and approved the grant. Open Water’s report stressed that distributing agency members carry a fiduciary duty to act in the best interests of the National Lottery Distribution Trust Fund and its beneficiaries.
But Adams has strongly rejected suggestions that the SRDA acted improperly, insisting investigators had misunderstood the process. He argued that the original NSA application was inadequate and unrealistic, particularly its estimated cost of R300 000 per court.
Adams said the SRDA intended for the expanded infrastructure allocation to be linked to the broader Netball World Cup legacy programme and that strict conditions were recommended before any money should have been released.
These included separate grant agreements, proper monitoring mechanisms, confirmation of land availability, approved building plans and maintenance commitments before construction funds were paid.
He instead blamed the NLC for allegedly failing to implement the safeguards proposed by the SRDA after members’ terms expired in April 2023.
The NLC, however, defended its processes, saying the commissioner merely signs off on grants that have already been adjudicated and quality assured by the SRDA in line with the Lotteries Act.
The commission also confirmed that disciplinary processes had been instituted against certain officials identified in the forensic report, though it declined to disclose names or outcomes.
Responding to Adams, the NLC said: “Grant applications are adjudicated by the SRDA, which carries out its duties independently from the NLC commissioner in terms of a section of the Lotteries Act.
“[The commissioner] signs-off on grant applications that have been adjudicated and quality-assured by SRDA members. Her delegation empowers her to approve applications above specified amounts, and the Netball SA grant was signed off by her based on the recommendations by the SRDA.”
Neither Mali nor Ncula responded to initial questions sent via WhatsApp, or subsequent questions about the Open Water report.
The SIU investigation now threatens to deepen scrutiny over governance failures at the NLC, which has faced repeated controversy in recent years over the management and distribution of public lottery funds.
Open Water has been embroiled in controversies over the years. For example, the company was accused of biased reporting (in the case of their Eastern Cape Development Corporation investigation. – GroundUp
