Over R3.6 million irregular expenditure uncovered at National Gambling Board

MARCH 17, 2015

Preliminary findings of a forensic investigation into the affairs of the National Gambling Board (NGB) have revealed the irregular expenditure of more than R3.6 million as well as fruitless and wasteful expenditure of more than R66 000, says  the Department of Trade and Industry (dti).

A law firm was also irregularly appointed at a cost of over R2.2 million with the contract having to be cancelled.

The findings were announced by Minister Rob Davies during a briefing to the Portfolio Committee on Trade and Industry.

The forensic investigation also revealed that the NGB did not have a bank overdraft even though the bank allowed it to use the facility several times. Minister Davies said that the office space of the gambling board is more than double of the required office space.

Minister Davies commissioned the forensic investigation late last year following the Auditor-General’s (AG) irregular findings against the NGB and the board members.

He told the Portfolio Committee that the findings are not yet final as those implicated still need to be given a chance to comment on the preliminary findings of the forensic report. 

Board members resigned on 25 November last year through their legal representative after being temporarily removed by Minister Davies.

The Minister also emphasised that online gambling in South Africa is illegal and those involved in such activities will face the might of the law.

“Anyone operating illegally under the presumption that eventually they will be legalised ought to understand that they will not get a licence for this.  We are also talking to institutions that are dealing with money laundering to ensure that banks are not processing such transactions,” said Minister Davies. – SAnews.gov.za