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Today, in response to a parliamentary question submitted by the DA, the National Lotteries Board (NLB) has revealed that it contributed R1 million to COSATU during the 2010/2011 financial year. The Minister of Trade and Industry, Rob Davies, has conceded that the NLB paid R1 million to COSATU in order to help finance the union federation’s 25th anniversary event. The Democratic Alliance (DA) regards this as a matter of deep concern. It is unacceptable that funds supposed to be used to the benefit of needy causes are being used to finance tripartite alliance events. This is a clear conflation of party and state. The DA will be writing to the Auditor-General to request that an investigation be conducted into the awarding of funding to COSATU. Should the Auditor-General find that the funds were irregularly awarded, the DA will call on COSATU to immediately repay all funds allocated to it by the NLB.

A full version of the question and reply can be viewed here.

According to Minister Davies’ reply, the full breakdown of funds provided to COSATU for the hosting of its 25th anniversary is as follows:

• R650 000 for performances by national artists
• R250 000 for setting up the stage and sound at the event
• R50 000 for performances by local artists
• R50 000 for the venue

The NLB has been mandated to give support to deserving charities, sports organizations and other entities that promote the general welfare of our people. It is completely inappropriate for the NLB to provide financial support to a political interest group that spent the money on a self-serving celebration. COSATU’s anniversary celebration in no way constructively contributed to improving people’s lives and should therefore never have been considered as an appropriate project to fund. There are numerous organizations that could have spent this money much more usefully.

This is not the first time that the NLB has been used by the ANC and its affiliates as a party-political slush fund. At the end of last year, R40 million was granted to the National Youth Development Agency (NYDA) to host an ANC Youth League (ANCYL) totalitarian youth event.

The NLB and the Minister need to explain exactly why this payment was considered to be an appropriate use of NLB resources. I will be writing to them to gain further clarity on this issue.