Dr Alistair Ruiters

1
PRESENTATION TO THE PORTFOLIO COMMITTEE ON
TRADE AND INDUSTRY

• Dr Alistair Ruiters
• Director-General, DTI
• 7 November 2001

2
OUTLINE

• Overview
• National Lotteries Distribution Trust Fund
  (NLDTF)
• Distributing agencies
• Applications and adjudication
• Allocations to date
• Charities
• Sports and recreation
• Arts and culture
• Miscellaneous

3
OVERVIEW

• National Lotteries Board
• established in terms of the Lotteries Act No. 57
  of 1997.
• functions of the Board include ensuring that
• National Lottery and all other lotteries
  conducted within South Africa are conducted with
  due propriety
• interests of all participants in lotteries are
  protected
• net proceeds of the National Lottery are as large
  as possible and
• funds in the National Lottery Distribution Trust
  Fund (the NLDTF) are administered and invested
  in terms of the Act.

4
OVERVIEW

• Five broad categories of good causes identified
  by the Lotteries Act
• Reconstruction and Development Programme
• Charities
• Arts, Culture and National Heritage (including
  Environment
• Sport and Recreation
• Miscellaneous Purposes
• Minimum allocations set by Minister of Trade and
  Industry (10 for each category, except
  Miscellaneous with maximum of 5) - subject to
  change as experience is gained with distribution.
  
• Distribution of funds overseen by the Board as
  trustees of the NLDTF

5
National Lotteries Distribution Trust Fund (NLDTF)

• Transfer of funds to NLTDF
• funds transferred on a weekly basis by Uthingo
• amount calculated using predetermined formula
  based on ticket sales
• Transferred to good causes started at 10.16
• Will increase up to a high of 40.58.
• Over the 7-year Licence period, an average of 30
  of the proceeds after VAT will have been
  contributed to Good Causes.

6
National Lotteries Distribution Trust Fund (NLDTF)

• Amount available in NLDTF
• Ticket sales began March 2000
• March 2000 - March 2001 financial year
  R439,214,363.00 accumulated in the Fund,
  inclusive of interest, available for transfer.
• Funds accumulated during 2001 will be used for
  distribution in 2002.

7
DISTRIBUTING AGENCIES Process of appointment
Consultations by Minister of Trade Industry
with relevant Ministers
8
DISTRIBUTING AGENCIES Chairpersons

• The Minister of Trade and Industry appointed the
  following persons as Chairpersons of the
  agencies
• CharitiesDr. Tebogo Maitse
• Arts, Culture and National Heritage
• Dr. Prince Nevhutalu
• Sport and Recreation Ms. Kedi Tshoma

9
Emergency Funding

• After March 2000, concerns raised by
  organisations that had previously received income
  from other lotteries/scratchcards.
• Minister Erwin directed the National Lotteries
  Board to offer Emergency Funding from the
  Miscellaneous Purposes to organisations that
  could show that the reduction of the funding that
  they previously received was affecting their
  operations.
• Call for applications made on 8th October 2000
  with closing date of 30th November 2000.
• Minister Erwin appointed National Lotteries Board
  as distributing agency for the miscellaneous
  purposes category.
• Total of 400 applications received
• Total of R4,102,000.00 allocated to 80
  organisations that met the requirements.

10
Applications and adjudication

• Central applications office established, with
  specialised management information system
• Each Distributing Agency identified criteria for
  funding and issued individual advertisements
  inviting potential beneficiaries to submit
  applications by a pre-determined deadline.
• Statutory requirements were published in
  Government Gazette No. 21696 on 27 October 2000.
• Calls for applications during March April 2001.
• Deadlines for submissions during May 2001.
• Data capture during June 2001.
• First adjudication meetings in July 2001.

11
Applications and adjudication Overall criteria

• general development in the Republic
• the enhancement of the standard of living of all
  people in the Republic
• the number of tickets sold in each province
• the population of each province and
• the financial requirements of each province.

12
Applications and adjudication Charities

• Called for applications on 25th March 2001 with
  deadline of 18th May 2001
• Funding aimed at registered charitable
  organisations at a risk of scaling down or
  closure as a result of lack of finances with
  sound financial management.
• Priority areas identified as organisations
  serving the needs of
• children,
• youth,
• socially vulnerable groups like women,
• aged,
• disabled,
• people living with HIV/AIDS.

13
Applications and adjudication Arts, Culture
Heritage

• Called for applications on 1st April 2001 with
  deadline of 31st May 2001.
• Arts and Culture focus organisations involved
  in the production of cultural products building
  new audiences education, training and skills
  transfer.
• National Heritage (including Environment) focus
  clean-up operations, especially in built up
  areas planting of indigenous flora youth
  environmental education and partnerships between
  the more and less advantaged youth groups, with
  priorities of
• job creation
• skills transfer
• nation building
• equity and the redress of historical imbalances.

14
Applications adjudication Sports Recreation

• Called for applications on 1st April 2001, with
  deadline of 31st May 2001.
• Targets
• existing sport facilities/clubs that lacked sport
  equipment
• upgrading and/or renovation of existing sports
  facilities
• training institutions/organisations involved in
  capacity building for sport

15
Applications adjudication Adjudication process

• Adjudication meetings held.
• Members of the Distributing Agencies assess
  merits of each application in terms of prescribed
  requirements.
• Successful applicants allocated a sum of money.
• Conditions, if any, are identified.
• Grant Officers visit projects to verify aspects
  of applications as requested by the Distributing
  Agencies.
• Upon verification, bank details are also verified
  and Funding Agreements signed.
• By signing the Funding Agreements, beneficiaries
  commit to
• use the awarded funds for the purposes as
  stipulated
• submit quarterly reports

16
SUCCESSFUL APPLICATIONS
17
PROVINCIAL TICKET SALES
18
ALLOCATIONS BY PROVINCE
Gauteng figure includes national charities
based in Gauteng
19
ALLOCATIONS BY CATEGORY
20
CHARITIESBreakdown by Province
21
CHARITIESBreakdown by Subcategory
22
SPORTS RECREATION Provincial breakdown
23
ARTS, CULTURE HERITAGE Provincial Allocations
24
ARTS, CULTURE HERITAGE
25
MISCELLANEOUS Allocation by province