The Good Governance Advocacy Group Ghana (GGAGG) has issued a scathing demand for the immediate cancellation of what it describes as an “illegal and unethical” contract between the National Lottery Authority (NLA) and KGL Group, alleging the deal constitutes a deliberate act of state capture designed to hand over a vital public institution to private interests.
At a press conference in Accra, a spokesperson for the group, who is also an investigative journalist, Listowell Nana Kusi-Poku, described the deal as “one of the greatest state-capturing scandalous deals ever to have hit our beloved vulnerable country.” The group insists that the partnership between NLA and KGL violates key provisions of the National Lotto Act, 2006 (Act 722) and undermines public trust in governance.
The Genesis of the Alleged Scandal
According to the group, the NLA—established in 1958 to raise revenue for national development—operated efficiently until 2017. However, it claims the institution began to decline following the appointment of Kofi Osei-Ameyaw as Director-General during the tenure of the Akufo-Addo-Bawumia administration.
GGAGG alleges that Osei-Ameyaw’s tenure was characterized by opaque agreements, administrative lapses, and the marginalization of licensed Lotto Marketing Companies (LMCs). These actions, they say, disrupted revenue generation and set the stage for a takeover by private entities.
KGL’s Entry and Controversial Takeover
KGL reportedly entered the market with its own product, Lucky 3, which failed to gain traction. Subsequently, the company sought to operate the popular 5/90 lottery game—allegedly in breach of Act 722. Although initially penalized, KGL eventually secured an exclusive contract to run the 5/90 game digitally under the watch of then newly-appointed NLA Director-General, Sammy Awuku.
GGAGG alleges this move cemented KGL’s illegal dominance and marked the beginning of a special purpose vehicle created solely for the capture of state assets.
“This arrangement violates Sections 2(2), 5(1), and 15 of Act 722,” the group stated, explaining that the Act restricts the conduct and sale of lottery games to the NLA and its licensed LMCs. KGL, it said, is neither of these.
Legal and Financial Implications
The group warns that the NLA now functions merely as a shell of its former self, relying on financial lifelines from KGL to remain operational. “This amounts to a privatized takeover of a public mandate,” the group charged, emphasizing that the deal has not gone through any competitive or legislative process.
GGAGG estimates that Ghana is losing billions of cedis in potential revenue. “The NLA could be generating at least GHS 6 billion annually, with up to GHS 5 billion in profit if properly optimized,” they claimed.
Calls for Action
The group is demanding swift and transparent corrective action, including:
- Immediate cancellation of the exclusive license granted to KGL.
- Full compliance with the National Lotto Act, particularly Sections 2(2), 5(1), and 15.
- An independent forensic audit of all NLA-KGL contracts and transactions.
- Reinstitution of the NLA as a fully sovereign, publicly accountable entity.
In a final warning, GGAGG stated: “Failure to take these corrective actions must lead to the immediate shutdown or dissolution of the NLA, as it no longer serves its lawful purpose nor the people of Ghana.”
As of the time of reporting, neither the National Lottery Authority nor KGL Group has officially responded to the allegations.
Source: Newstitbits.com