Lotteries Act regulations to be challenged

Regulations in the Lotteries Act that the National Lotteries Commission (NLC) has used to hide from accusations of fraud and corruption are to face a constitutional challenge. A GroundUp report says its investigation into the Lottery since 2018 has uncovered corruption, maladministration and nepotism involving lottery grants running into hundreds of millions of rands. But the investigation has been marked by the refusal of the NLC to disclose details of projects funded by it, citing regulations in the Lotteries Act. Now papers are to be served on Trade, Industry & Competition Minister Ebrahim Patel, who has oversight responsibility for the NLC, challenging the constitutionality of these regulations. The application in the Gauteng High Court by the SA Editors Forum (Sanef) and Media Monitoring Africa (MMA) seeks to have a regulation in the Lotteries Act declared unconstitutional and invalid and set aside. Because the matter involves a constitutional issue, lawyers acting for Sanef and MMA have filed notice of this with the court. The papers have already been served on the NLC, United Civil Society in Action (Ucsa) and GroundUp, who are all named as respondents. The service of the papers on the Minister is ‘under way’, according to Dario Milo, who is acting for Sanef and MMA. Both Ucsa and the NLC claim that these regulations protect the confidentiality of recipients of lottery grants. But the papers make it clear that ‘relief’ is only being sought from Patel and not from any of the other parties. Three grounds are stated as reasons for challenging the constitutionality of the regulations: they are an ‘unjustifiable’ limitation to the right to freedom of expression that is enshrined in Section 16 (1) of the Constitution; they are ‘unconstitutionally and impermissibly vague’; and they are ultra vires of the Lotteries Act. Alternatively, Sanef and MMA are asking for a ‘publication in the public interest’ clause to be inserted into the regulations.

Full GroundUp report