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The KGL Group says it received GHC200,000 from the NLA Good Causes Foundation as a donation to the KGL Foundation and not GHC400,000 as contained in the disbursement records of the NLA.
The KGL group said it received the GHC200,000 from the Good Causes Foundation during the launch of its foundation in 2023.
The Fourth Estate has been investigating the disbursements of funds from the NLA’s Good Causes Foundation since it was established in 2021, and found several questionable expenditures that deviated from what the law intended it for.
Section 2(3) of the National Lotto Act, 2006, (Act 722) states that: “There shall be conducted as part of the operation of National Lotto, a lottery with the object of providing care and protection for the physically or mentally afflicted, the needy, the aged, orphans and destitute children.”
The Fourth Estate’s analysis of the disbursements of funds from the NLA Good Causes Foundation showed that, a substantial part of the nearly GHC50 million that the foundation disbursed went into questionable enterprises. It included sponsorships for conferences, awards nights, gala dinners, comedy shows, festivals, and donations to political and business elites.
According to the NLA’s data, two separate payments of GHC300,000 (cheque number: 689432) and GHC100,000 (cheque number: 306453) were made to the KGL Foundation to support its activities. However, the company insisted it received only half of the amount captured in the NLA’s database.
“Our review of the KGL Foundation account indicates that GHC200,000.00 received from Good Causes Foundation was donated by the former Director-General, Mr. Sammy Awuku, on behalf of the NLA during the KGL Foundation’s formal launch event as part of its fundraising initiatives, which was open to all partners of the Group,” the company said in an email response to The Fourth Estate.
“No records of any other transactions from the Good Causes Foundation to the KGL Foundation have been found.”
KGL Foundation operates exclusively NLA’s multi-billion cedi 5/90 lotto, which in 2024 alone generated more than GHC 3 billion in revenue. Through the arrangement between the two, the NLA does not even know how much KGL makes in sales.
In an interview with The Fourth Estate, KGL Group Chairman, Alex Appau Dadey insisted that the foundation was not a beneficiary of the GHC 400, 000 mentioned as being contained in the NLA Good Causes Foundation’s database. He said the KGL Group invited the NLA to contribute to the KGL Foundation as a reciprocation for the millions the company spent on the NLA.
But many have questioned why funds meant for orphans and the mentally afflicted are being spent on an endowed organisation such as KGL that is said to be a financial lifeblood of the NLA. Others wonder why KGL can give and take from the same NLA even if what was received was GHC200,000 as claimed by KGL or GHC400,000 as contained in the NLA’s data.
Samuel Awuku’s response
The immediate past Director-General of the NLA, Samuel Awuku, while he said he could not recall the exact amount given to the KGL Foundation, justified the expenditure.
He said, given the contributions of KGL as a partner to the NLA, it was normal for the NLA to support the activities of KGL.
“So, the NLA receives a chunk of support per the contract with KGL, and we receive some support as part of Good Causes. I think it was once or twice. I think it was a collaboration, if I recall. It was something in the area of sports and development,” he guessed.
“There was no time I did that without informing the board. KGL gives in terms of support is over two million cedis every year as Good Causes, and when they also requested collaborative support, I don’t think it was anything out of the ordinary, looking at what we get from them.”
Mr. Awuku maintained that the NLA’s expenditures on collaborations never crossed the GHC200,000 mark. However, data from the Good Causes Foundation showed that the KGL Foundation received twice that amount.
In the end, KGL insisted it got half the money, while the NLA’s records show it was double. Between the denials, justifications, and fuzzy recollections, one thing is clear: the figures don’t add up – the vulnerable, who were supposed to benefit, are left with nothing but mathematical games.
In the first place KGL in its form and structure violate the National lotto Act 722. KGL is not granted license to operate lotto but rather should have been considered as Lotto Marketing Company whose revenue generated ought to attract only 25% commissions and 75% of the revenue should have been remitted to NLA. If KGL consider themselves as service operators contracted then they must have also gone through the procurement Act such as other similar services operators for the NLA eg LOT services and Simmnet. They only received 6% . The question that require answers is how was KGL established? Is it LMC or service operator contracted by NLA?