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National Lotteries Board

National Lotteries Board

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National Lotteries Board

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  1. National Lotteries Board Presentation to Portfolio Committee on Sport & Recreation 20 July 2010

  2. Presentation Outline 22 • Regulatory Framework • NLDTF Allocations - Sector Breakdown - Provincial Spread - Beneficiary categories • Governance - Structures & Functions - Matters of good corporate governance • Discussion

  3. Regulatory Framework 33 • 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

  4. Governance..Structure NGOs CBOs Applications REGULATOR Monitors activities through Licence NLB Central Applications Office Gidani NLDTF Weekly transfer Operates the National Lottery 5% 28% 0% 45% 22% DA Art & Culture DA Charities DA Sport DA RDP DA Misc 44

  5. Functions of the Board 55 • 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

  6. Functions of Distributing Agencies 66 • 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

  7. Sport Funding Focus 77 • 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)

  8. Application Statistics 88

  9. Allocations: 1Apr 09- 31March 10 99

  10. Allocations: 1 Apr 09- 31March 10 1010

  11. Allocations: 1 Apr 09- 31March 10..sector spread 1111

  12. Allocations: 1Apr 09- 31March 10..sector spread 1212

  13. Accumulated disbursements (actual cash paid as at 30 June 2010) 1313

  14. Governance…Structure 1414

  15. Composition of SRDA 1515 • 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

  16. Challenges..distribution of funds 1616 • 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

  17. Challenges..corporate governance 1717 • 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

  18. Interventions/Proposed solutions 1818 • 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

  19. DISCUSSION 1919