National Lottery Board Criteria for Allocating Funds

ARTS AND CULTURE PORTFOLIO COMMITTEE
17 October 2006
NATIONAL LOTTERY BOARD CRITERIA FOR ALLOCATING FUNDS

Acting Chairperson: Mr M Sonto (ANC)

Documents handed out:
Minutes of the Proceedings of Portfolio Committee on Arts and Culture 12 September 2006
National Lottery Distribution Trust Fund presentation

SUMMARY
The National Lottery Distribution Trust Fund briefed the Committee on the criteria used for allocation of funding and stated that only registered non profit organisations could receive allocations. The allocations were divided on redistribution process objectives between Arts, Sports, Culture, Charities, and miscellaneous. In the last financial year R1, 3 billion had been allocated. Challenges included the high rate of rejection of applications, for a variety of reasons. Funds of R2.1 billion were available for distribution in the current year. Questions from Members addressed the steps to help unsuccessful organisations to improve their applications, the possibility of using other channels to disseminate information, the language of the forms and public knowledge of the process, priority areas, the Board, monitoring and evaluation of applicants, and who had benefited from the miscellaneous category of grants. It was confirmed that there would be smooth takeover by the new consortium.

The Committee considered an invitation from the Vietnamese Committee on Culture, Youth and Pioneers for a friendship visit, and the forthcoming visits at the end of October. The Minutes of 12 September were tabled but were not approved.

MINUTES
National Lottery Distribution Trust Fund briefing
Mr Sershaan Naidoo, Board Member, National Lottery Distribution Fund (NLDF) said that allocations from the Fund were made to reconstruction and development programmes (RDP), Sports and Recreation, Arts Culture and Heritage, Charities, and Miscellaneous. The main priority areas were Arts, Heritage and the Environment, and he set out the various sub-areas. The criteria for allocations were that they should be in the priority areas, assist with equity and redress, nation building, job creation, skills transfer and promote partnerships. Certain groups could not apply for support, but non-profit trusts, registered non profit organisations, section 21 companies and statutory bodies for projects could apply. He set out the application process.

The total amount allocated in the last financial year was R1, 3 billion. The statistics were set out, and he indicated that the highest amounts went to Arts, Charities, Sport and Miscellaneous. The largest allocations were made to Gauteng, Western Cape, Eastern Cape and Natal because their applications met the requirements.

Challenges faced by the NLDTF included the high rate of rejection, especially from poorer provinces. The reasons varied from no audited financial statements to no clear proposals, late applications or requests outside the mandate of the Distributing Agency. Funds available for the period April 2006 to March 2007 were R2,1 billion, of which 28% would be allocated to Arts, 45% to Charities, 22% to Sport and 5% to miscellaneous. There were no allocations planned in the RDP area.

Discussion
Mr H Maluleka (ANC) asked about the steps taken that would help organisations that had not been successful in applying for allocations.

Mr Naidoo replied that there was a toll-free number for all applicants to give them proper guidelines.

Ms D Van der Walt (DA) enquired about the language that was used in the application forms.

Mr Naidoo replied that all application forms were written in English, but NLDTF would accept applications that were written in other languages.

Ms P Tshwete (ANC) asked for clarity on priority areas, and the terms of office of members of the Lottery Board. She also enquired about the closing date for applications.

Mr Naidoo replied that priority areas were the Arts, Environment and Heritage. The Minister of Trade and Industry appointed the members of the Board who sat for a five year term.

Chief B Biyela (IFP) asked whether the Lottery Board was providing bursaries.

Mr Naidoo replied that the Lottery Board did not provide any bursaries.

The Chairperson asked what had been the major reason for the decline in applications.

Mr Naidoo replied that the overriding reason that applications were declined was because the organisations making the application were not registered as required..

Ms D Kohler-Barnard (DA) suggested that the print media, specifically newspapers, should be used to explain the whole process in a detailed form. She said that application forms should be available in all official languages, to cater to all population groups.

Mr Naidoo replied that his organisation had been using newspapers, but he would note Ms Barnard’s suggestion and forward them to the Board.

Ms Tshwete asked who was responsible for monitoring and evaluation of the beneficiaries. She asked whether NLDTF would organise workshops in rural areas.

Mr Naidoo replied that the beneficiaries had to submit progress reports before they would be allocated the next portion of the funding. The staff at the head office did Monitoring and evaluation. He confirmed that a number of workshops were held in rural areas to explain the whole application process.

Chief Biyela asked for clarity on who fell within the miscellaneous category.

Mr Naidoo replied that “miscellaneous” funds could be used for emergency purposes. They had also been used to fund an Oncology Unit at Red Cross Children’s Hospital in Cape Town, on the basis that the Unit  would then benefit the whole of Southern Africa. Other miscellaneous awards had been allocated for the opening ceremony of the Cricket World Cup, as this had fallen outside Environment, Arts and Heritage.

Ms Kohler-Barnard wanted to know whether there were going to be delays in paying the lottery winners due to induction of new owners.

Mr Naidoo replied that there would be no delays to payment of lottery winners when the new consortium took over as systems were already in place to ensure a smooth transition.

Mr Maluleka suggested the use of existing channels such as Multi Purpose Community Centres (MPCC) for dissemination of information.

Mr Naidoo commented that he would forward the proposal on MPCC to the Board for consideration.

Ms Tshwete enquired about the effect on the Board if a new Minister of Trade and industry came into power.

Mr Naidoo replied that the Board Members were elected for a five years cycle.

Other business
The Chairperson read an invitation from the Vietnamese Committee on Culture, Youth and Pioneers for a friendship visit.

Ms Tshwete asked the about the availability of funds to cover the trip.

The Chairperson said that he would look into the suitable dates and availability of funds and inform Members in due course.

He suggested that the Committee should leave on 31October for the Freedom Park and Voortrekker Monument visit, and the whole day on 1 November would be taken up in visits.

Members had not had the chance to check the Minutes of 12 September and therefore could not yet approve them.

The meeting was adjourned.