Lotto: Sam plays it again

Affidavit reveals the Sascoc president would get up to 15% commission on approved money granted to powerboating by Lottery, writes Werner Swart

GIDEON Sam, president of the SA Sports Confederation and Olympic Committee (Sascoc), faces claims he tried to score commission on National Lottery money granted to Powerboat SA.

The allegations follow revelations in the Sunday Times last week that a company in which Sam - who is chairman of the National Lottery Distribution Trust Fund's sports distributing agency - holds a stake, will be paid nearly R1-million in commission for facilitating a Lotto grant for Cycling SA.

In a bombshell affidavit by a former senior Powerboat SA (PSA) official, Sam and former PSA president Johan Oosthuysen are accused of brokering a deal whereby Sam would receive up to 15% commission on money granted to the sport by the Lotto.

The allegations against Sam now form part of a probe by Sascoc, the department of sport and recreation and the National Lotteries Board (NLB).

Sascoc CEO Tubby Reddy confirmed a forensic audit will be carried out into PSA's affairs as well as Sam's alleged conflict of interest.

Said Reddy: "Sascoc is not accusing anyone of any irregularity, but a forensic audit will answer all claims and questions."

This week the Sunday Times can reveal that:

• Oosthuysen is alleged to have told members at a gala dinner in 2009 of the deal he had struck whereby Sam would get between 10% and 15% commission on approved lotto funding;
• Christo de Jager, who led a breakaway faction of the PSA, confronted Sam about Oosthuysen's remarks as early as February last year but nothing came of this; and
• The NLB are probing why boat engines bought with Lotto money were later sold to PSA secretary-general Khaya Mjo, a personal friend of Sam, for his own private business.

Powerboating has been rocked by a dispute over the past two years over allegations of mismanagement and financial irregularities and was placed under administration by Sascoc on November 16.

Three other PSA members who were present at the dinner, confirmed De Jager's claims this week.

Oosthuysen, however, refused to speak to the Sunday Times, saying: "I am not going to comment about that."

He resigned the day after PSA was placed under administration.

De Jager said in his affidavit, which was also sent to Sascoc and the NLB: "(Oosthuysen) went further by saying that if Mr Sam was doing the applications the chances of failure would be 0% and that he would then pay him a commission of 10% to 15% on the approved amount."

NLB spokesman Sershan Naidoo said PSA has received two grants in the past five years, worth R3-million and R1.7-million.

He confirmed the NLB was investigating the allegations.

Sports minister Fikile Mbalula's spokesman Paena Galane said the "accusations against (Sam) are being attended to".

Galane said an urgent meeting will be called with Sascoc to address this matter.

Sam denied offering to assist PSA with its Lotto application.

"If Johan did say I will help him get money from the Lotto, the onus is on Johan to say so and give reasons why he said so," Sam said.

But De Jager provided proof of an email he had sent Sam in February 2010 enquiring about Oosthuysen's remarks. De Jager said: "Absolutely nothing was done about this."

Sam hinted there was a plot to unseat him with an eye on the Sascoc elections next November.

Asked to elaborate, Sam said: "SA sport and elections are strange bedfellows. In SA sport you must believe anything because anything is possible. ... but you know, I am a democrat and if the people who elected me say it's time for a 'recall', who am I to resist?"

Mjo said there was nothing wrong with him buying four boat engines from the PSA. "The engines have never been used and the PSA needed money... I paid R30000 for them," he said. The engines were bought in 2006 for R93831.