Click to edit Master subtitle style 7/23/10

National Lotteries Board

Presentation to Portfolio Committee on Sport & Recreation20 July 2010

7/23/10

Presentation Outline

Regulatory Framework

NLDTF Allocations - Sector Breakdown

- Provincial Spread

- Beneficiary categories

Governance

- Structures & Functions

- Matters of good corporate governance

Discussion

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Regulatory Framework

The National Lotteries Act establishes the National Lotteries Board

Sets up the process for awarding the licence

Establishes the National Lottery Distribution Trust Fund (NLDTF)

Sets up the process of Distribution

Sets up process for Monitoring & Regulating Private & Society Lotteries

Promotional Competitions

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Gidani

NLB

NLDTF

DAChariti

es

DAArt &

Culture

DASport

DARDP

DAMisc

28%45

%

22

%

5%0

%

Weekly transfer

CentralApplications

Office

REGULATORMonitors activitiesthrough Licence

NGOs

CBOs

Applications

Governance..Structure

Operates the National Lottery

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Functions of the Board

Advise the Minister

on the issuing of Licence/s

on the percentages allocated to good causes

on the efficacy of Legislation related to Lotteries

Protection of Players

Maximize proceeds to good causes

Administer NLDTF

Monitor & Regulate Other Lotteries

Manage the Central Applications Office

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Functions of Distributing Agencies Appointed by the Minister of Trade &

Industry for a period of 5 yrs

Develop criteria and guidelines for allocation of funding as directed by the Minister

Adjudicate applications for funding

Review project progress-and site visit reports

Reporting duties to Board

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Sport Funding Focus

Capacity building (managers, administrators and coaches).

Equipment and kit for teams and clubs.

Building & Upgrading of sporting facilities (incl. schools & clubs)

Development

High Performance

Major events (participation and hosting)

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Application Statistics

Received Adjudicated Approved Declined Outstanding

2007/8 3691 1154 613 541 2537

2008/9 867 594 139 455 273

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Allocations: 1Apr 09- 31March 10

ProvinceProvincial Spread (%) Provincial Spread (R)

     Eastern Cape 7% R 45, 034,728.51

Free State 6% R 34, 268,842.31Gauteng 10% R 64, 791, 966.70

KZN Natal 4% R 24, 992, 369.28Limpopo 13% R 77, 379, 364.48

Mpumalanga 8% R 49, 836, 347.71Northern Cape 3% R 21, 166, 014.59

North West 8% R 50, 462, 954.36Western Cape 7% R 41, 307, 448.07

National 34% R 209, 783, 751.00     

 Total 100% R 619, 023, 787.01

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Allocations: 1 Apr 09- 31March 10

Provincial Spread1010

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Allocations: 1 Apr 09- 31March 10..sector spread

Municipalities R 18,724,395.00 3%Schools R 243,768,878.22 39%Tertiary

Institutions R 43,801,931.68 7%NFs, PF+PSC R 169,673,957.67 27%

Provincial Academies R 18,447,790.00 3%CLUBS &

NGO'S R 35,506,834.44 6%

MACRO BODY R 89,100,000.00 14%TOTAL R 619,023,787.01  100%

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Allocations: 1Apr 09- 31March 10..sector spread

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Accumulated disbursements (actual cash paid as at 30 June 2010)

Year Amount (in Rand) 2001-2003 84,206,003

2004 149,483,4932005 226,903,5962006 304,949,5192007 291,831,7122008 211,207,3952009 298,268,9942010 371,547,0622011 190,335,304

Total (Sports) 2,128,733,079 (25.4%)Total (NLDTF) 8,387,089,977

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Governance…Structure1414

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Composition of SRDA

Mr. Gideon Sam (Chairperson)

Ms. Hajeera Kajee (Deputy Chairperson)

Mr. Thulani Tshabalala

Mrs. Keikabile Motlatsi

Mr. Vinesh Maharaj

Mrs. Celeste van Niekerk

Mr. Raymond Mali

Dr. Harold Adams

Mr. Vernie Petersen

Prof. Andre Travill

Mr. Edwin Ncula

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Challenges..distribution of funds Lack of strategic focus

High decline rate

Lack of/Inadequate impact measurement

Alignment of criteria/guidelines with funding objectives (e.g. development, transformation)

Operational model

Turnaround times

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Challenges..corporate governance Disjunction between responsibilities

of the Board as accounting authority and trustee of the NLDTF and the authority vested in the Distributing Agencies to adjudicate and decide on allocations of funds from the NLDTF

DA Membership: The benefit of the expertise of people involved in the sport sector vs. the potential/perceived conflict of interest in allocation of funds

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Interventions/Proposed solutions Ministry of Sport to produce blue print

for sport development

Road shows to be implemented before end of 2010

Establishment of provincial offices

Review of NLB organizational structure

Review of operational model (incl. possible decentralization of adjudication of applications)

Revised Funding Regulations to be published by the Minister of Trade & Industry

Amendment of the Lotteries Act

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DISCUSSION1919