The Better Ghana Alliance has issued a sharp rebuttal to a recent article published by the Digital Public Policy Forum (DPPF) claiming that KGL is Africa’s most accomplished Lotto Marketing Company (LMC).
In a detailed rejoinder released Monday, the Alliance described the claim as misleading and an apparent attempt to deflect from serious concerns raised by the Financial and Business Services Employees Union (FBSEU) of the National Lottery Authority (NLA).
Legal Ambiguities Over KGL’s Status
Central to the Alliance’s concerns is a “misrepresentation” of KGL’s licensing status.
According to the group, KGL is not recognised in law as an LMC under the National Lotto Act, 2006 (Act 722). Instead, it operates as a “Third-Party Collaborator,” a designation that lacks the privileges and responsibilities associated with LMCs.
The group pointed to Section 2(4) of Act 722, which permits collaborations but does not establish a legal basis for the “online LMC” category referenced in the DPPF report.
Regulatory Breaches and Revenue Concerns
Even if KGL were considered an LMC, the Alliance contends its operations would violate several provisions of the Act. These include requirements for prepayment before sales, NLA oversight of sales data, and NLA’s exclusive mandate to pay prize monies and commissions.
It further argued that KGL’s activities have contributed to significant revenue losses to the state.
Citing industry estimates, the group claims KGL’s daily sales—believed to range between GHS 8 million and GHS 12 million—could generate up to GHS 2.8 billion annually under proper LMC frameworks. However, the company’s reported annual contribution of GHS 250 million falls far short of this potential.
Automation and Oversight: A Misleading Narrative?
While acknowledging the role of digital transformation in modernising public institutions, the Alliance disputes the notion that KGL was a pioneer in this regard.
It insists that the NLA had already developed digital solutions prior to KGL’s entry, citing platforms like *890# and systems such as Simnet and Lots.
DPPF’s portrayal of KGL as a digital innovator, the Alliance argues, omits key facts about previous directives for digital operators to cease operations due to regulatory breaches.
Allegations of Institutional Capture
The Better Ghana Alliance’s concerns echo those raised in a 2022 petition to the Economic and Organised Crime Office (EOCO) by a lotto receiver, Mr Kwaku Antwi-Boadu.
The petition accuses KGL of having effectively “impoverished” the NLA and driving it into debt.
The petitioner alleged that delays in commission payments, inability to renovate NLA facilities, and the late disbursement of prize money are the direct results of the NLA-KGL partnership.
Mr Antwi-Boadu also questioned KGL’s technological claims, stating that mobile lottery services predated the company’s involvement.
The petition asserted that the NLA was deliberately weakened to allow KGL to dominate, with concerns having previously been raised with senior national security officials, including Major General (Retired) Adu Amanfo.
Calls for Government Action
The Alliance urged government agencies and regulatory bodies to conduct an independent investigation into the NLA-KGL relationship and its broader implications for public accountability.
They warn that the current structure allows for significant state revenue leakage, with reports suggesting only GHS 800 million of Ghana’s GHS 1.8 billion lottery market is being captured by the NLA.
In conclusion, the Better Ghana Alliance called for a renewed focus on regulatory enforcement and institutional integrity rather than what it termed the “glorification of a single entity.”
Source:TheDotNews