Ramaphosa Expands SIU Probe into National Lotteries Commission Corruption

The new directive, issued as Proclamation R293 of 2025, broadens the scope and timeline of the SIU’s ongoing investigation, originally established under Proclamation R. 32 of 2020.

President Cyril Ramaphosa has signed a critical amendment to the National Lotteries Commission (NLC) proclamation, officially expanding the Special Investigating Unit’s (SIU) mandate to further probe allegations of widespread maladministration, corruption, and procurement irregularities at the NLC.

The new directive, issued as Proclamation R293 of 2025, broadens the scope and timeline of the SIU’s ongoing investigation, originally established under Proclamation R. 32 of 2020. The amendment enables the SIU to scrutinize a wider range of procurement contracts and financial activities and extends the investigation period by five years, allowing probes to continue until 10 October 2025.

A Five-Year Extension and Broader Mandate

In a statement released on Monday, the SIU confirmed that the amended proclamation empowers it to investigate allegations of serious maladministration and unlawful conduct in the awarding of tenders, contracts, and service provider appointments within the NLC.

According to the SIU, the amendment introduces two major changes to its existing mandate:

1. Extension of the timeframe — the SIU’s investigation period now covers all allegations of maladministration, corruption, and financial misconduct from November 2020 through October 2025, effectively allowing the unit to pursue new leads and unresolved cases identified since the initial inquiry.

2. Expansion of the investigative scope — the inclusion of 21 additional categories of procurement and contracting, covering an array of services where irregularities, procedural violations, and possible misuse of public funds have been reported.

New Areas Under Investigation

Among the newly added matters under scrutiny are high-value and high-profile contracts related to legal services, employee wellness, and media procurement. These include:

• The appointment of a panel of attorneys and legal practitioners (Bid NLC/2020-05);

• The appointment of a service provider for a Comprehensive Employee Wellness Programme (RFP/2021-15);

• The extension of the Metrofile contract for off-site document storage and delivery (January–March 2021);

• The procurement of an Electronic Board Pack system (RFP/2020-06, RFQ NLC/2019-006, and Bid NLC/2020-006);

• The placement of advertorials in Back to Basics magazine;

• Deviations from normal procurement procedures involving major media houses such as Independent Media, Arena Holdings, and Media24;

• An education and awareness broadcast campaign dated 29 October 2020; and

• Accommodation and travel services rendered by Regency Apartment Hotel and Ndila Transfers.

The SIU stated that it would investigate whether these procurements were conducted fairly, equitably, transparently, competitively, and cost-effectively, as required by the Public Finance Management Act (PFMA) and Treasury Regulations. The unit will also determine whether NLC officials violated internal procurement policies or engaged in conduct that resulted in unauthorised, irregular, fruitless, or wasteful expenditure.

Investigation Stems from Earlier Findings

The expansion of the investigation follows new evidence and allegations that emerged during the initial multi-phase SIU probe into the NLC, which began in 2020.

The initial investigation was divided into three phases—together valued at approximately R2 billion—covering grant allocations, procurement irregularities, and potential abuse of Lottery funds. The SIU is now concluding the third phase and preparing to launch civil litigation to recover misappropriated funds.

According to the SIU, the amendment “became necessary as the ongoing investigation unearthed further evidence suggesting deep-seated systemic irregularities that required a broader and longer mandate to address comprehensively.”

Legal Powers and Accountability Measures

The SIU operates under the Special Investigating Units and Special Tribunals Act (Act No. 74 of 1996), which empowers it to investigate corruption, maladministration, and fraud in public institutions and to recover losses suffered by the state through civil litigation in the High Court or the Special Tribunal.

Under this legal framework, the SIU may:

• Subpoena witnesses and documents, including financial records and internal communications;

• Initiate civil recovery proceedings against individuals or entities found to have benefited unlawfully;

• Refer evidence of criminal conduct to the National Prosecuting Authority (NPA) for criminal prosecution; and

• Recommend systemic reforms to prevent the recurrence of such misconduct in public entities.

“The SIU is now authorised to investigate whether the procurement of, or contracting for, these services was conducted in a manner that was not fair, equitable, transparent, competitive, or cost-effective,” the statement read.

The SIU further committed to ensuring accountability and recovery of public funds, adding that criminal referrals would be made to the NPA wherever evidence of fraud, corruption, or money laundering is uncovered.

Broader Implications for Governance and Transparency

The NLC investigation has been among the most high-profile probes into governance failures in public institutions, with allegations spanning improper grant disbursements, conflicts of interest, and irregular procurement contracts.

Public and parliamentary pressure on the NLC intensified in recent years amid reports of misallocation of funds meant for charitable and community development projects, which in some cases were allegedly redirected to politically connected individuals or businesses.

By extending the SIU’s mandate, the Presidency has reaffirmed its stance on zero tolerance for corruption in state entities. Officials close to the matter say the expanded probe will ensure that all implicated officials and beneficiaries are held accountable and that public trust in the NLC’s governance framework is restored.

Focus on Systemic Reforms

Beyond uncovering wrongdoing, the SIU’s investigation is expected to lead to recommendations for systemic reforms, including stricter procurement oversight, improved record-keeping mechanisms, and enhanced transparency measures for all Lottery-funded initiatives.

The unit stated, “Beyond investigating maladministration, corruption, and fraud, the SIU remains committed to identifying systemic failures and recommending measures to prevent future losses.”

A Renewed Push for Clean Governance

President Ramaphosa’s decision to expand the investigation reflects his administration’s continued focus on institutional integrity, fiscal accountability, and ethical governance. The Presidency has frequently emphasized that no public entity or official will be exempt from scrutiny, particularly where allegations of corruption threaten service delivery and public confidence.

As the SIU moves into the next phase of its inquiry, observers note that the expanded mandate marks a decisive step in South Africa’s broader anti-corruption drive, signaling renewed determination to root out misconduct and reclaim public funds misused at the expense of citizens.