Members of Parliament Surprised by Absence of Rules as Government Selects Firm to Manage National Lottery
Members of Parliament (MPs) have expressed concern over the government’s decision to select a company to manage the national lottery without having proper regulations in place. The revelation came from Denis Ngabirano, the Acting Chief Executive Officer of the Lotteries and Gaming Regulatory Board, who informed the finance minister of the successful firm (not named) recommended by the board.
During a meeting with the Public Accounts Committee on Commissions, Statutory Authorities, and State Enterprises (COSASE) to address queries in the Auditor General’s report for the year ending June 2022, the board members appeared before Hon. Joel Ssenyonyi, the committee chairperson.
MPs raised questions regarding the procurement process for the operator selected to run the national lottery, expressing concern that critical regulations were not in place. Ssenyonyi highlighted the lack of standards and raised the issue of a mega national lottery coming up, referencing previous cases where entities like Premier Lottery and JADA had made certain individuals wealthy.
The Auditor General’s report pointed out that four sets of regulations were missing, including those for handling complaints and disputes, as well as rules for managing the disposal of unclaimed prizes. The absence of these regulations has led to an unregulated industry with potential risks of exploitation and abuse of gamblers and minors.
Hon. Yusuf Nsibambi emphasized the importance of having proper regulations to manage lottery and gaming centers across the country to protect users from being taken advantage of by operators. He stressed that guidelines alone are not sufficient and that proper controls are needed.
Ngabirano presented the Lotteries and Gaming Act of 2016, which authorizes a National Lottery conducted on behalf of the finance minister, aimed at raising funds for purposes defined by the minister. The Act requires the Board to ensure that the selected person is fit and proper to conduct the national lottery before recommending them to the Minister for a license.
Hon. Muwada Nkunyingi suggested summoning the finance minister to the committee to account for the lack of regulations.
Deborah Kituyi, the Head of Legal Affairs at the National Lotteries and Gaming Regulatory Board, informed the committee that they have advised the minister to enforce the pending regulations through recommendations. The finance ministry forwarded the recommendations to the Ministry of Justice and Constitutional Affairs for legislative drafting. Kituyi expressed confidence that the regulations would be in force by the end of the quarter.
The board has been given until Wednesday, 02 August 2023, to respond to the queries raised in the Auditor General’s report.
