NLB ignores 41% of funding applications in 2010/2011

In a reply received today to a Democratic Alliance (DA) parliamentary question, the Minister of Trade and Industry, Rob Davies, revealed that the National Lotteries Board (NLB) only processed about 60% of the funding applications it received during 2010/2011. 

The breakdown for all applications is as follows:

• Total applications received:  8591
• Applications approved:  2310
• Applications declined:  2773
• Applications ignored:  3508

This means that 3508 NGOs, charities and developmental organisations' applications for funding were simply ignored by the NLB. We also know from anecdotal reports that a large number of declined applications were rejected on spurious grounds. 

At the same time, we know that politically connected organisations like Makhaya  Arts and Culture (R64.1 million), COSATU (R1 million) and the National Youth Development Agency (R40 million) received millions in grants. 

The facts suggest that the NLB followed a highly irregular process to award funding during 2010/2011, and that political connections, rather than need, dictated the awarding of grants. 

In the last several months, the DA has advocated for a range proposals on how to reform the NLB to be included in the gambling review that has been set up by the Portfolio Committee on Trade and Industry. 

Many of the proposals we have put forward have been included in the Committee's recommendations. The most important recommendations are:

·         That all funding decisions be made by one, independent Distributing Agency which will only account to the NLB, and not the Minister;

·         that the members of this Distributing Agency will be selected based on their experience in the NGO sector and that they will serve full-time;

·         that practical steps should be taken to modernise and simplify the application process; and

·         that the NLB will also conduct much more robust oversight over NGOs that receive money from the NLB.

The inclusion of these proposals in the final review is a positive development. Swift action needs to be taken to ensure that the NLB is turned around, and that it becomes an organisation that works for the poor, rather than the politically connected.

Statement issued by Geordin Hill-Lewis, DA Shadow Deputy Minister of Trade & Industry, March 13 2012

Click here to sign up to receive our free daily headline email newsletter