Accra, Oct 16, GNA-The provisional license of NLA-KGL deal was signed in November 2019, so the deal has no role in the past debts incurred b...
Accra, Oct 16, GNA-The provisional license of NLA-KGL deal was signed in November 2019, so the deal has no role in the past debts incurred by the NLA, Dr Razak Kojo Opoku, former Public Relations Manager of NLA has stated.
“NLA started making its losses long before KGL was issued exclusive provisional license agreement by NLA in November 2019”.
In a statement copied to the Ghana News Agency in Accra, he added that the total debts of NLA BEFORE NLA-KGL deal was around GHS 233, 121, 889.28 million, as accumulated debts, comprised, unpaid Lotto Prizes to winners of national lotto, unpaid Contractors, unpaid Withholding Tax(Income Tax) to Ghana Revenue Authority(GRA) and unpaid SSNIT Contributions.
The others, he said were unpaid Technical Service Providers(TSP) Fees, unpaid Lotto Commission to Lotto Marketing Companies, unpaid Provident Fund and unpaid Staff Union and Association Dues Deductions.
Dr Opoku also mentioned some of the challenges then as existing revenue sharing agreement with Technical Service Providers(each receiving 6% on the gross revenue generated by the Authority via Point of Sale Terminals), 2. 25% commission to Lotto Marketing Companies retailing lotto products via Kiosks and Point of Sale Terminals(previously it was 20%), Illegal lottery operations, higher Win ratios and no capping on the amount of money used for staking Lotto by the public.
Refuting claims by some media outlets, he said the duty of NLA to transfer money to the Consolidated Fund was a political and management decision which had absolutely nothing to do with NLA-KGL deal.
“The responsibility of KGL is to pay its fees to the NLA in accordance with the terms and conditions of its license agreement.
What NLA does with the money paid by KGL is NOT the business of KGL, just like KGL cannot dictate to Ghana Revenue Authority(GRA) on how it uses the taxes paid by KGL to the State.”
Dr Opoku added: “For the purposes of education, it is extremely difficult to even fault the Board and management of NLA if they fail to transfer monies to the Consolidated Fund on monthly basis as stated in Section 32(4) of National Lotto Act, 2006(Act 722) because Section 32(4) of Act 722 can ONLY be fully implemented if Section 32(3) of Act 722 has been fully implemented.
“According to Section 32(3) of Act 722, “The Authority shall pay out of the Lotto Account prize monies for winners of National Lotto and commissions to Lotto Marketing Companies licensed by the Authority”. This provision must be satisfied before you can proceed with the implementation of Section 32(4) of Act 722 which states that, “The Authority shall transfer the net balance in the Lotto Account on monthly basis to the Consolidated Fund”.
“So, what if there is NO net balance in the Lotto Account after the payments of Prize monies for winners of National Lotto as stated in Section 32(3) of Act 722, Commissions to Lotto Marketing Companies licensed by the Authority as stated in Section 32(3) of Act 722 and operational and capital expenditure from the Lotto Fund as stated in Section 50 of Act 722?
He said for political expediency, the NLA mostly robbed winners of national Lotto, Lotto Marketing Companies, Technical Service Providers, operational and administrative expenditures to transfer money into the Consolidated Fund.
He said for instance, the NLA in 2012, transferred GHS 20, 000,000.00 to the Consolidated Fund yet the Authority was indebted to winners of national lotto, Lotto Marketing Companies, Technical Service Providers etc. at a cost of GHS 16, 754, 642.18.
“In 2013, transferred GHS 25, 000, 000.00 to the Consolidated Fund yet the Authority was indebted to winners of national lotto, Lotto Marketing Companies, Technical Service Providers, etc. at cost of GHS 56, 917, 633.63 and in 2014, transferred GHS 11, 850, 000.00 to the Consolidated Fund yet the Authority was indebted to winners of national lotto, Lotto Marketing Companies, Technical Service Providers etc. at a cost of GHS 11, 597, 177.79”.
He said in 2015, NLA transferred GHS 33, 270, 000.00 to the Consolidated Fund yet the Authority was indebted to winners of national lotto, Lotto Marketing Companies, Technical Service Providers etc. at a cost of GHS 18, 306, 364.73, while in 2016, transferred GHS 16, 000, 000.00 to the Consolidated Fund yet the Authority was indebted to winners of national lotto, Lotto Marketing Companies, Technical Service Providers etc. at a cost of GHS 21, 035, 212.20.
“In 2017, NLA transferred GHS 30, 000, 000.00 to the Consolidated Fund yet the Authority was indebted to winners of national lotto, Lotto Marketing Companies, Technical Service Providers etc. at a cost of GHS 14, 601, 385. 04 and in 2018, transferred GHS 33, 927, 000.00 to the Consolidated Fund yet the Authority was indebted to winners of national lotto, Lotto Marketing Companies, Technical Service Providers etc. at a cost of GHS 560, 155155.27.”
He said in 2019, NLA transferred GHS 16, 962, 000.00 to the Consolidated Fund yet the Authority was indebted to winners of national lotto, Lotto Marketing Companies, Technical Service Providers etc. at a cost of GHS 26, 624, 188.53 and in 2020, transferred GHS 22, 400, 495.24 to the Consolidated Fund yet the Authority was indebted to winners of national lotto, Lotto Marketing Companies, Technical Service Providers, Contractors, Suppliers etc. at a cost of GHS 66, 725, 129.91.
He said from the evidence above based on Facts and Data, it was clear that, for NLA to transfer monies to the Consolidated Fund in accordance with Section 32(4) of Act 722, there was the need for the NLA to breach Section 32(3) of Act 722.
“ This has always been the case from enactment of National Lotto Act, 2006(Act 722).”
“From 2012-2020(9years), NLA transferred a total amount of GHS 209, 409, 495.24 to the Consolidated Fund yet within that same period of 2012-2020, NLA was indebted to winners of national lotto, Lotto Marketing Companies, Technical Service Providers, Suppliers etc. at a cost of GHS 233, 121, 889.28.”
Dr Opoku wondered why are media house could needlessly blame KGL Technology Limited as the cause of NLA inability to transfer money to the Consolidated Fund in accordance with Section 32(4) of Act 722? Completely no basis at all.
“And why should NLA necessarily transfer monies to the Consolidated Fund if they haven’t been able to pay winners of national lotto, commissions to Lotto Marketing Companies, Fees to Technical Service Providers, Salaries and benefits of NLA Workers etc”.?
Highlighting the contributions of KGL to national development, Dr Opoku said about 50-70% of KGL’s Profits were invested into Corporate Social Responsibility(CSR) and Corporate Social Investments(CSI) across the country to champion national ddevelopment.
He mentioned the construction of multimillion-dollar ultra-modern Mental Health Facility in Kumasi in collaboration with Otumfuo Osei Tutu II, providing face-lift for Accra Psychiatric Hospital, support to Akropong School for the Blind, donations to flood Victims at Keta, democracy Cup initiative by the Parliament of Ghana, sponsorship to Ghana Football Association, sponsorship to Ghana Black Stars and other National Football Teams, Millennium Marathon, Scholarships to Orphans, Needy, and Destitute Children.
The rest he said were two Million Ghana Cedis annually to support NLA Good Causes Foundation, three Million Ghana Cedis annually to support NLA-KGL Stabilization Fund, refurbishment of NLA’s Draw Studio, Brennan Hall, Payments of Live Lotto Draws of NLA and several others not mentioned.
GNA
Edited by George-Ramsey Benamba
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