KGL – NLA Contract Best So Far

Kofi Osei Ameyaw

 

The contract between KGL and NLA has been described by a former Head of Public Relations (PR) under Kofi Osei Ameyaw at the National Lottery Authority (NLA), Dr. Razak Poku, as the best since the establishment of the NLA in 1958.

In a statement released yesterday, Dr. Poku slammed those he described as “unrepentant saboteurs” who are exposing their ignorance about the operational mandate of NLA under Act 722 and L. I. 2008 (1948).

NLA Mandate

Act 722 and L.I., 1948 state that NLA does NOT directly have to sell lottery products to the staking public BUT through third-party companies such as Lotto Marketing Companies (LMCs via Kiosks & POSTs/TPMs, and Online LMCs, which KGL is a licensed Online Lotto Marketing company), Technical Service Providers, Collaborators, Telcos, and Suppliers, he put out in a statement. “Bear in mind that, all the third-party companies are 100% Private entities.

“As a matter of fact, the Provisional License of KGL Technology Limited was jointly signed by Kofi Osei-Ameyaw as the Director-General, and Togbe Francis Albert Seth Nyonyo as the Board Chairman of NLA,” he said.

The final license of KGL Technology Limited was signed by Togbe Francis Albert Seth Nyonyo as the Board Chairman, and Samuel Awuku as the Director-General of NLA, Dr. Poku pointed out.

Legal Backing Of KGL-NLA Contract

There is absolutely NO legal violations, and absolutely NO state capture agenda by KGL that contravenes Act 722, he insisted.

With the greatest of respect, the Solicitor-General representing the Attorney-General and Ministry of Justice on the Board of NLA who was re-appointed by H.E. John Mahama would NEVER allow such legal violations to occur in relation to KGL-NLA Contract, he said.

Continuing, he said “the contract of KGL went through all the right processes of law, and proper scrutiny in accordance with Act 722, L. I. 1948 and other relevant laws of Ghana.”

“The current arrangement between NLA and KGL is 100% ethically right and 100% LEGALLY right under Act 722 and L. I. 1948,” he stressed.

Section 2(2) and Section 4(1) are strictly implemented using Sections 5(1), 6, 7, 8, & 9 of Act 722, and Sections 12, & 13 of L.I. 1948. Also, Section 15 of Act 722 is implemented using Sections 16, 28, 9 & 10 of Act 722, supported by Sections 7, 12 and 13 of L. I. 1948.

Therefore, it is very myopic for anyone to conclude that Section 2(2), Section 15 and Section 5(1) are impediments to the licensing of private entity like KGL Technology Limited by NLA to operate 5/90 lottery products via short code (USSD) and online space, said Dr. Poku.

Continuing, he said that, “KGL Technology Limited is selling National Lotto products empowered by Sections 12 of L. I. 1948 fully supported by Sections 5, 6, 7, 8, 9, 10, 16, and 20 of Act 722.

“Let me reiterate that, it is absolutely FALSE that in the absence of KGL Technology Limited:

  1. NLA can generate GH¢6 billion annually in revenue.
  2. Deliver over GH¢3 billion in gross profit, and
  3. If properly optimized, can earn up to GH¢12 billion in revenue, and GH¢5 billion in profits annually for national development.”

Even Ghana Revenue Authority (GRA) or Bank of Ghana (BoG), he insisted, cannot dream of such aforementioned figures, not to talk of games of chance or running of highly volatile industry like lottery whereby winning ratios can easily exceed revenue generated on daily basis leading to debts and deficit for the NLA. “In fact, there is no historical data or current scientific data that supports the aforementioned figures quoted by people who are seriously ignorant and misinformed about the lottery industry in Ghana,” he stressed.

The rants and demands by any group of people or saboteurs against KGL in relation to cancellations of KGL contract with NLA is indeed laughable, he pointed out, adding that “if Mahama’s government, the Board and Management of NLA are willing to pay a judgement debt of *US$ 20 Billion* then they can proceed with the cancellations of KGL Contract.”

There is no justification to call for restoration of legal compliance with Act 722 because there is NO violation of any sections of Act 722 by KGL-NLA Contract, he stated.

“The EXIT of KGL Technology Limited SHALL completely Collapse NLA. Without KGL, NLA can NEVER pay its employees, pay winning tickets, and pay their indebtedness to third-party contracts,” he said.

“KGL has NEVER taken any money away from the NLA, and NLA too has NEVER paid any money to KGL Technology Limited. It is as simple as that,” concluded Dr. Poku.