Non-Profit Sports Company Under Investigation for Misuse of Lottery Funds

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LOTTERY FUNDS,INVESTIGATION,SPORTS ORGANISATION

The Physical Education Institute of South Africa (PEISA) received millions in grants from the National Lotteries Commission (NLC) for organizing sporting events. However, PEISA has refused to disclose how the funds were used, prompting an investigation by the Special Investigations Unit. The NLC is also under scrutiny for awarding grants without transparency regarding the funded sports and competitions.

A “physical education” non-profit company received R17.6-million from the National Lotteries Commission to organise sporting events, but has refused to provide details on how the money was used.

GroundUp has reliably learnt that the grants paid to the Physical Education Institute of South Africa are under investigation by the Special Investigations Unit.R5.7-million for “transformation and development”;The NLC did not say which sports were funded or what competitions were organised with this money. It is also not clear how the budget amounts were calculated.

In 2021, PEISA received another R5.1-million to select teams to participate in the International School Sport Federation Championship:NO COMMENT FROM PEISA GroundUp contacted one of PEISA’s three directors, Norman Mphake, on WhatsApp. Mphake first offered to meet with us to provide documents, but days later retracted his offer: “I have been advised not to overindulge you as I may find myself running around trying to explain to my partners and stakeholders: ‘that’s not what I meant’, and you would have your headline.

The NLC said it was aware that Mphake was a director of both PEISA and FootGolf SA. PEISA also collaborated with the Department of Basic Education on two physical education symposiums, one in 2015 and another in 2019.Education department spokesperson Terence Khala told GroundUp that there was a Memorandum of Understanding with PEISA, but the organisation did not receive any funding from the department.

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