Accra: The provisional license agreement between the National Lottery Authority (NLA) and KGL, signed in November 2019, holds no accountability for the past debts accumulated by the NLA, according to Dr. Razak Kojo Opoku, former Public Relations Manager of NLA.

According to Ghana News Agency, Dr. Opoku emphasized that NLA’s financial losses began well before the exclusive provisional license was granted to KGL. The accumulated debts of NLA prior to the NLA-KGL deal amounted to approximately GHS 233,121,889.28. These debts included unpaid lotto prizes, contractors, withholding tax to the Ghana Revenue Authority (GRA), and SSNIT contributions. Additional liabilities involved unpaid fees to Technical Service Providers (TSP), commissions to Lotto Marketing Companies, provident fund contributions, and staff union dues.

Dr. Opoku highlighted several challenges faced by NLA, such as revenue sharing agreements with Technical Service Providers and commissions to Lotto Marketing Companies. He also pointed out issues with illegal lottery operations, higher win ratios, and the absence of a cap on the staking amount. Refuting claims by some media outlets, he clarified that the decision to transfer money to the Consolidated Fund was a political and management decision, unrelated to the NLA-KGL deal.

He explained that KGL’s responsibility is to pay its fees to the NLA as per the license agreement, and what NLA does with that money is not KGL’s business. The inability to transfer funds to the Consolidated Fund, as required by Section 32(4) of the National Lotto Act, 2006 (Act 722), is due to the need to first satisfy Section 32(3) of the same Act, which mandates payout of prize monies and commissions.

Dr. Opoku provided examples of previous financial practices where NLA transferred funds to the Consolidated Fund while still indebted to winners, marketing companies, and service providers. From 2012 to 2020, NLA transferred a total of GHS 209,409,495.24 to the Consolidated Fund, despite an outstanding debt of GHS 233,121,889.28.

He questioned the media’s misplaced blame on KGL for NLA’s financial challenges and highlighted KGL’s contributions to national development through Corporate Social Responsibility and Corporate Social Investments. These included investments in mental health facilities, educational support, disaster relief, sports sponsorships, and various other initiatives aimed at championing national development.