Under its previous leadership, the National Lotteries Commission (NLC) spent over R1 million on legal fees in an effort to pressure GroundUp into halting the publication of articles exposing alleged widespread corruption.
This was part of a broader attempt to silence the news outlet, including unsuccessful complaints to the Press Council and defamatory media releases targeting GroundUp and its reporter.
At one point, NLC’s lawyers threatened to file criminal charges against GroundUp and its reporter.
Additionally, the commission demanded the removal of 16 articles from GroundUp’s website, many of which revealed mismanagement and suspected corruption involving multimillion-rand Lottery-funded projects.
These legal expenses were revealed by the new Minister of Trade, Industry, and Competition, Parks Tau, in response to parliamentary questions from DA MP Toby Chance.
Tau disclosed that the NLC had incurred nearly R1.4 million in legal costs for advice on stories it considered defamatory.
Though GroundUp is mentioned by name in only one case, a source within the commission confirmed that the outlet was the primary target of the previous administration’s legal actions. The legal firm Malatji Khanye (previously Malatji & Co) represented the NLC in these matters.
On 30 January 2020, the firm sent a letter demanding that GroundUp stop publishing details of lottery grant beneficiaries, threatening legal action if the outlet did not comply.
The commission attempted to use a section of the Lotteries Act to justify its stance, claiming that it was illegal to disclose information about non-profit organisations receiving Lottery funding.
On 1 February 2020, Malatji escalated its demands, reiterating its intention to press criminal charges if the stories were not removed.
GroundUp’s attorney, Jacques Louw, challenged the commission’s interpretation of the law. Soon after, the NLC lodged a complaint with the Press Ombudsman, which GroundUp opposed due to its tardiness and because the issues were already subject to litigation. The complaint was eventually dismissed by the Press Council’s Public Advocate.
In July 2020, Malatji Khanye again acted on behalf of the NLC when a newly formed non-profit organisation, United Civil Society in Action, sought to prevent GroundUp from publishing information on lottery beneficiaries.
Although the NLC was named as a respondent in the case, United Civil Society in Action made arguments similar to those previously put forward by the commission.
United Civil Society in Action, led by Tebogo Sithathu, an ally of the former NLC administration, also sent a legal letter to then-Minister Ebrahim Patel, urging him not to disclose information about lottery grant recipients.
On 6 November 2020, Malatji, representing NLC Commissioner Thabang Mampane, demanded a retraction and apology from GroundUp following a report that exposed Mampane’s false claim to Parliament about a non-existent Lottery-funded minstrel museum.
GroundUp’s attorney responded by asking Mampane to provide proof to counter the report’s claims, but Malatji never replied.
Earlier this month, GroundUp reported that Sithathu is now involved in efforts to challenge the current NLC board and commissioner.
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