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DIRECTION AND PROCEDURE FOR THE DISTRIBUTION AGENCIES IN RELATION TO THE DISTRIBUTION OF FUNDS FROM THE NATIONAL LOTTERY DISTRIBUTION TRUST FUND

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Last checked: 9 October 2019

LOTTERIES ACT

Act 57 of 1997.

DIRECTION AND PROCEDURE FOR THE DISTRIBUTION AGENCIES IN RELATION TO THE DISTRIBUTION OF FUNDS FROM THE NATIONAL LOTTERY DISTRIBUTION TRUST FUND
[Updated to 14 April 2015]

GoN R644, G. 33398 (c.i.o 30 July 2010),
GoN R312, G. 38687 (c.i.o 14 April 2015).

By virtue of the powers vested in me in terms of section 32(3) of the Lotteries Act, 1997 (Act 57 of 1997), and after consultation with the National Lotteries Board and relevant Distributing Agencies, I Dr Rob Davies, Minister of Trade and Industry, hereby give the following directions as to the matters to be taken into account in determining the persons to whom, the purposes for which and the conditions subject to which Distributing Agencies are to allocate any amounts.

Dr Rob Davies, MP
Minister of Trade and Industry

Definitions

In these Regulations any word or expression to which a meaning has been assigned in the Act bears the same meaning assigned to it in the Act, unless the context indicates otherwise.

The Act means the Lotteries Act, 1997, (Act 57 of 1997).

PART 1

Direction for Distribution Agencies in determining the distribution of funds from the National Lottery Distribution Fund

(1) In compliance with the direction of the Minister issued in terms of Section 32(3) read with Section 32(4) of the Act, the Distributing Agencies shall take into account the following factors—

(a) general development in the Republic, with specific reference to the regional, economic, financial, social and moral interests of the Republic and the enhancement of the standard of living of all the people in the Republic; and

(b) provincial and local interests including—

(aa) the number of lottery tickets sold in each province;

(bb) the population of each province; and

(cc) the financial requirements of each province.

(2) The priorities for distributing the funds must contribute to developmental needs, enhancement of social & moral responsibility, and economic viability of programmes designed to advance rural, under privileged and poor communities.

(3) Of the total allocation available for distribution by a Distribution Agency at least 50% shall be directed towards the following priority areas—

(a) expansion of home based care services through training and infrastructure development for the aged, the sick, vulnerable as well as the orphaned children, disabled and rehabilitation homes, so as to enhance the standard of living in the rural, underprivileged and poor communities;

(b) provision of educational facilities designed to enhance literacy through early childhood education, adult literacy, vocational training and mentoring for skills development that include the disabled people;

(c) development of sports and recreational facilities in the rural areas for talent development and increase accessibility to such facilities for all including disabled persons;

(d) support for causes designed to protect and promote traditional knowledge and cultural expressions;

(e) promotional work of arts and craft produced by groups of disabled people and women;

(f) development and preservation of cultural heritage sites for revenue generation including tourism attraction, and economic viability for the community; and / or

(g) promote and support entrepreneurial development through training of women and providing necessary infrastructure and facilities for farming projects as a primary response to economic development and reduction of unemployment levels.

(4) Subject to subregulation (3) a Distribution Agency may publish formal calls for application of grants for purposes of complying and achieving this Ministerial directive.

(5) In each formal call published in terms of regulation (4), the National Lotteries Commission may set a cap on the amount an organisation may apply for in respect of that call, irrespective of the number of projects that may be specified in such an application.

[Reg 5 in Part I ins by reg 2 of GoN R312 in G. 38687.]

PART II

Application process and Adjudication Procedures for Distribution Agencies

(1) A Distribution Agency may call for applications more than once a year.

(2) The National Lotteries Commission must—

(a) provide administrative support in order to facilitate the adjudication of applications for funding by the Distribution Agencies;

(b) implement programmes to—

(i) educate and raise awareness of the grant making process; and

(ii) provide financial management training or capacity building training to applicants for grants, if the National Lotteries Commission is of the view that applicants do not possess such skills and that the said skills are necessary for the successful execution of projects which are funded by the National Lotteries Commission.

(c) with the approval of the Minister, develop and publish widely including, placement of information on the organisational website the procedures to be followed in the allocation of funds to worthy good causes after taking into consideration government priorities and any report compiled after research conducted in terms of section 2A(3) of the Act, if any.

[Reg 2 in Part II subs by reg 3 of GoN R312 in G. 38687.]

(3) Upon receipt of an application for adjudication a Distribution Agency shall determine whether the application meets the criteria and the applicant has submitted all the mandatory documents in the application Form 2010/1 and—

(a) if the application does not meet the criteria and contain all the mandatory documents, such application will be declined on the basis that it does not meet the criteria or that it is an incomplete application, and the applicant will be informed accordingly;

(b) if the application meets the criteria and contains the mandatory documents, a Distribution Agency will proceed to assess the application in accordance with the requirements in regulations 3-6 of Regulations Relating to Allocation of Money in the National Lottery Distribution Trust Fund.

3A.

(1) In assessing an application for a grant in accordance with Regulation (3)(b), a Distribution Agency must—

(a) finalise its adjudication within 150 calendar days from the date of receipt of the application; and

(b) communicate its decision to the applicant thereon in terms of Regulation (6).

(2) In the event of a Distribution Agency failing to comply with the time period stipulated in Regulation (3A)(a)(i), it must—

(a) within 14 days of the lapsing of the period in (3A)(a) furnish reasons for its failure to the board in writing; and

(b) take all necessary steps to finalise processing of the application within a period of 30 days.

(3) The National Lotteries Commission must publish invitations for grant applications widely including, placement of information on the organisational website and timelines for application, required by both the National Lotteries Commission and the Distributing Agencies on the processing of grant applications from the time of receipt to final adjudication and payment.

(4) The National Lotteries Commission may at any time take steps to verify the applicant's information and operations of the organisation which has applied for or received a grant including, conducting site visit.

[Reg 3A in Part II ins by reg 4 of GoN R312 in G. 38687.]

(4) When assessing the application, a Distribution Agency may—

(a) at any time request any additional information or documents, other than mandatory documents in Form 2010/2; and

(b) take into consideration the fact that an applicant has had funding that was previously granted to it by the National Lotteries Commission withdrawn for whatever reason.

[Reg 4 in Part II subs by reg 5 of GoN R312 in G. 38687.]

(5) A Distribution Agency may decide to make a grant, with or without conditions, or to decline to make a grant.

(6) Upon finalisation of the adjudication process, a Distribution Agency will within 30 calendar days in writing—

(a) inform the applicant of the outcome of the adjudication;

(b) if the application is declined, inform the applicant of the reasons;

(i) send the grant agreement to the applicant and such grant agreement will be open for acceptance for a period of 30 calendar days;

(ii) if acceptance of the offer or the grant agreement is not received within 30 calendar days, a Distribution Agency may withdraw the grant by giving notice to the applicant;

(iv) if the grant agreement is accepted and received within thirty calendar days payment will be effected within 60 calendar days.

(7) A Distribution Agency may approve a grant subject to condition that—

(a) the grant be paid in full or in trenches;

(b) the grant be paid after receipt of a positive pre-grant site inspection or visit; and / or

(c) the grant be paid subject to a site visit being conducted during or after utilisation of the grant to satisfy that the grant was utilised for purposes for which it was approved.

(8) The grant agreement must, in addition to any condition, stipulate the powers of the Minister to prohibit or withdraw a grant, or impose conditions in terms of Section 33 read with Section 32 of the Act.

8A. Every organisation which received a grant from the National Lotteries Commission shall, in procuring goods or services paid for by funds so acquired, follow a transparent and competitive process as set out in the Treasury Regulations.

[Reg 8A in Part II ins by reg 6 of GoN R312 in G. 38687.]

(9) If a Distribution Agency approves a grant to an organisation which serves as a conduit for further distribution of the funds to the beneficiaries, in accordance with the purposes of the Act, such organisation shall comply with the procedure and conditions stipulated in this Notice to ensure that such further distribution conforms to the direction of the Minister and the requirements in regulations 3-6 of Regulations Relating to Allocation of Money in the National Lottery Distribution Trust Fund.

(10)

(1) The National Lotteries Commission shall only receive and consider application for funding from an applicant who applies through an agent representative or conduit, if—

(a) the applicant has been in existence for less than six months on the date of submission of the application; or

(b) there is a clear need for a project in a community and that community is not organised through a recognised legal entity.

(2) Where an applicant applies for a grant through an agent, representative or conduit in terms of section 26G(3), the application must be accompanied by the following—

(a) a statement by the applicant providing reasons why it requires assistance; and

(b) a statement by the agent, representative or conduit on the nature of assistance it will provide to the applicant.

(3) Where an application for a grant lodged in terms of Regulation 2 in Part III is considered and approved by the Distribution Agency—

(a) the total amount that may be charged by the agent, representative or conduit for services rendered by it to the grant beneficiary may not exceed five percent of the amount of the grant, provided that the maximum amount charged shall not exceed one hundred and fifty thousand rand (R150 000);

(b) the agent, representative or conduit shall before transfer of any grant funds, submit a plan to the National Lotteries Commission setting out how it will transfer the requisite skills to build the capacity of the assisted organisation or community; and

(c) furnish a report to the National Lotteries Commission on the actual execution of the plan submitted in terms of Regulation 3(b) in Part Ill within six months of the transfer of the initial funds or such period as has been determined in the terms and conditions of the grant.

[Reg 10 in Part II subs by reg 7 of GoN R312 in G. 38687.]

(11) Organisations receiving funds through conduits cannot apply directly to a Distribution Agency for funding unless such organisations are no longer conduits recipients, and in that case can submit applications directly to a Distribution Agency.

PART III

Categories of Applications that may not be considered by the Commission

(1) The National Lotteries Commission shall not consider applications for funding for activities implemented—

(a) outside the borders of the Republic of South Africa;

(b) by organisations established for profit or in furtherance of objectives of a for-profit organisation;

(d) by political parties.

Procedure for Review of the Decisions by Distributing Agency

(2) Any applicant for a grant who is aggrieved by the decision of the Distribution Agency, other than a decision regarding the amount of the grant approved shall in lodging a review with the National Lotteries Commission—

(a) submit a notice to apply for review of the decision of the Distribution Agency, which notice must be signed by the applicant or by an authorised officer of the applicant within 30 days from the date the applicant received notification of the Distribution Agency's decision; and

(b) attach to the notice, a copy of the decision and a statement laying out the basis of the applicant's review application.

(3) Upon receipt of documents contemplated in Regulation 3, the National Lotteries Commission must refer the matter to a review committee which shall be constituted of at least three board members.

(4) In considering an application to review a decision of the Distribution Agency, the review committee of the board may—

(a) finalise the review and take a decision if the documents submitted with the review application contain information which in the opinion of the review committee, is sufficient for it to reach a fair decision; or

(b) request to be provided with further information or documents which the review committee considers necessary for determining the review.

(5) If the applicant fails to provide the requested information to the review committee within 30 days from the date on which the applicant received the request, the review shall lapse, provided that the provisions of the Promotion of Administrative Justice Act, 2000 (Act 3 of 2000) have been complied with.

(6) The review decision must be made within 90 days from the date on which the application for review was received or the date on which the documents contemplated in Regulation 3 were lodged, as the case may be.

(7) If the National Lotteries Commission fails to make a decision within the time specified in Regulation 6 of Part III of these Regulations, Regulation 3A(2) applies to the board with the necessary changes, and the report must be furnished to the Minister.

[Part III ins by reg 8 of GoN R312 in G. 38687.]

General

These regulations shall be called Direction for the Distribution Agencies in Determining Distribution of Funds from the National Lottery Distribution Trust Fund and will come into operation on 30th of July 2010, and will from time to time be amended to advance the objectives of the Act or as may be necessary taking into account developmental aspects and socio-economic needs.

APPLICATION FORM FOR FIRST TIME APPLICANTS AND EMERGING ORGANISATIONS FOR GRANTS NOT MORE THAN R500,000.00

FORM 2010/2

INSTRUCTIONS

If you are applying for a grant less than R500 000, please indicate (with a cross in the relevant box) if your application for funding is in terms of—

◻ Charities (Section 28 of the Act)
◻ Sport and Recreation (Section 29 of the Act)
◻ Arts, Culture and National Heritage (Section 30 of the Act)
◻ Miscellaneous Purposes (Section 31 of the Act)

This application form is in four parts:

In section A: Tell us about your organisation

In section B: Tell us about your project / programme / services

In section C: Organisational Funding History

In section D: Mandatory Documents.

NB: If there’s not enough space on this form for your answers, please use and attach further sheets of paper
.......................................................................................................................................................................
SECTION A

A1 Name of organisation: ............................................................................................................

A2 Postal address: ......................................................................................................................

Postal code: ...........................................................................................................................

A3 Street address: ......................................................................................................................

...................................................................................................................................................

Province: .................................................................................................................................

A4 Telephone number: ............................... A5 Fax number: ..............................................

A5 E-mail address: .....................................................................................................................
[Editor Note: Numbering as per original Gazette.]

A6 When was your organisation formed? ...............................................................................

A7 What kind of registered organisation are you? (E.g. Non-Profit Organisation, Non-Profit Company, Public Benefit Trust):

.................................................................................................................................................

A8 When was your organisation registered? ..................................................................................

A9 Registration number: ................................... (Please attach a copy of your registration certificate)

A10 Details of the main contact person with executive powers (e.g. Manage / Programme Director)

Name: ...................................................................... Position: ................................................

South African I.D. Number: .................................................. (Attach Certified Copy of ID)

Address: .................................................................................. Tel: .....................................

A11 Details of a second contact person (e.g. Chairperson):

Name: ....................................................................... Position: ...........................................

South African I.D. Number: .................................................. (Attach Certified Copy of ID)

Address: .................................................................................. Tel: .................................

A12 Names and positions of the Members of the Management Committee: (Members are required to attach certified copy of ID):

Name: ................................................. Position: ...............................................