NGO that received R5.5 million from the NLC had no bank account

Dear Cape Town

In December 2020, the Democratic Alliance (DA) revealed damning evidence related to a “Mystery Project” in Louis Trichardt that the National Lotteries Commission (NLC) had given R5.5 million to.

We discovered that this organisation was allegedly aligned to the ANC and campaigning on their behalf during the 2016 local government elections.

In addition, journalist Anton van Zyl revealed that this money was granted through the proactive funding mechanism which implies “…that a worthy project is identified (following proper research) and an “operator” is found to manage the project”.

During our investigation into this project we submitted several questions to Social Development Minister Lindiwe Zulu in order to ascertain the compliance status of this non-governmental organisation (NGO).

Three months after we submitted the parliamentary questions, the Minister has finally replied and has revealed the following;

• The organisation failed to submit financial and narrative reports for 2018 and 2020;
• According to affidavits supplied by the NGO to the Department of Social Development (DSD) in 2019 they possessed no bank account and therefore could not accept any donations from sponsors;
• They made no mention of funding from the NLC in their 2019 narrative report; and
• That should Uprising Youth Development (NPO 153-198) fail to submit outstanding reports it will be deregistered.

What is particularly strange is the fact that the NLC disbursed funds to an organisation that did not comply with DSD regulations and possessed no bank account.

So, the question then remains, to whom did the NLC disburse these funds and how have these funds been spent?

In lieu of these revelations, the DA will be submitting parliamentary questions to Trade and Industry Minister Ebrahim Patel in this regard, in order to clarify how he allowed this to happen under his watch.

Regards

Mat Cuthbert MP
DA Shadow Deputy Minister of Trade, Industry and Competition