Question NW2556 to the Minister of Trade, Industry and Competition
27 November 2020 - NW2556
Cuthbert, Mr MJ to ask the Minister of Trade, Industry and Competition
(1)(a) Who has the authority to make investments for the National Lotteries Commission (NLC), (b) who manages the specified investments and (c) how often is their performance reviewed; (2) what (a)(i) quantum of investments have been written off and (ii) are the reasons that they were written off and (b) are the details of all non-performing investments; (3) how do the NLC’s investments support the objectives and operation of the organisation?
Reply:
I have been furnished with a reply to the question submitted, by Ms Thabang Mampane, Commissioner of the National Lotteries Commission, which is set out below. I advise that it has been clarified by the NLC that the (1)(b) below refers to the NLC Senior Manager : Financial Accounting.
Reply by Commissioner Mampane:
“(1)(a) The NLC has an approved investment policy in compliance with Treasury Regulation 31.3.1. Investments are made in terms of the investment policy approved by the NLC Board.
(b) Investments are managed by the NLC.
(c) The performance of investments is monitored on a monthly basis.
(2)(a)(i) No investments have been written off. (ii) Not applicable
(b) Not applicable
(3) The National Lotteries Commission is a Public Finance Management Act, Act 1 of 1999, Schedule 3A entity. It does not receive funding from the fiscus. The investments support the organisation as follows –
- sustains the operations of the organization during licence transitions where the uptake in ticket sales demonstrates low performance (The reserve strategy is aimed at sustaining the organisation for a period of twelve months in instances where there is no revenue flowing into the organization);
- Supplements the grant allocations as the interest received from investments is utilized towards funding the operational expenditure of the organisation which means that more money is allocated towards grant allocations.”
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