Former NLC Company Secretary Steps Down Amid Corruption Scandal

Nompumelelo Nene, the suspended company secretary of South Africa’s National Lotteries Commission (NLC), has resigned following 145 disciplinary charges. She had been on full pay since her suspension in November 2022, earning nearly R6 million during this period. Her resignation, effective 28 February, comes after several unsuccessful legal attempts to stop the disciplinary proceedings.

Serious Allegations and Legal Challenges

Nene faced a range of charges, including failing to maintain the NLC’s financial integrity, misusing organizational assets, and breaching procurement regulations.

Among the most severe accusations was her alleged instruction to the NLC’s chief information officer to delete grant beneficiary records. Investigators believe this was an attempt to conceal corruption tied to misallocated lottery funds. Critical documents related to proactive funding were found to be missing, potentially hiding fraudulent lottery grants worth millions of rand.

Financial Misconduct and Questionable Appointments

Nene was also accused of approving irregular appointments and financial decisions, such as:

• Hiring Mabotle Mokwebo, whose associates later secured NLC contracts.
• Recommending service providers like MSG Group, which was paid R1.7 million for a Women’s Day event that never took place.
• Failing to disclose her ties to Rebotile Malomane, the wife of former NLC COO Philemon Letwaba, who benefited from lottery funding.
• Authorizing irregular payments totaling over R26 million to Neo Solutions.
• Facilitating NLC advertising payments, including R24.7 million spent on Sunday World between 2020 and 2022.

Failed Efforts to Halt Investigations

Nene launched multiple legal battles to stop the disciplinary proceedings and challenge findings against her. She sought to dispute the Auditor-General’s reports, which implicated her in unauthorized spending on media, consultants, and auditors.

In March 2023, a court dismissed her urgent application to halt the disciplinary hearing, ruling it lacked merit. The judge ordered her to pay punitive costs for wasting judicial resources. In April 2023, the same judge held Nene personally liable for legal costs.

Later, in November 2024, she attempted to compel government agencies to release documents to contest findings of irregular spending during her tenure. The court dismissed her request, labeling it a “fishing expedition.”

Resignation Amid Ongoing Controversy

In her resignation letter, Nene claimed her suspension amounted to constructive dismissal and a breach of contract. However, the NLC rejected this, stating she resigned to avoid a likely guilty verdict in the disciplinary process.

While her resignation marks the end of her tenure at the NLC, it remains unclear whether she will continue legal action against the Auditor-General’s findings. Her departure does not shield her from potential further investigations or legal consequences related to her actions during her time at the NLC.