According to an investigative report by the Fourth Estate and the Media Foundation for West Africa (MFWA), the National Lottery Authority (NLA) awarded a GHS 3 billion prime business to KGL Technology Limited in exchange for an annual payment of GHS 170 million.
The Fourth Estate also stated that the contract signed in 2024 was for 15 years, with an automatic renewal for an additional 5 years after expiration.
However, the facts and data from the National Lottery Authority (NLA) show that the Fourth Estate and the Media Foundation for West Africa (MFWA) engaged in sensationalism while exhibiting gross ignorance when it comes to lottery operations.
Below is the accurate/true story of the NLA-KGL deal:
15-Year Contract of KGL
KGL Technology Limited is not the only company that has a 15-year agreement with the National Lottery Authority (NLA). For the avoidance of doubt:
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Lots Services Ghana Limited had a 15-year contract with NLA in 2013, subject to automatic renewal for another 15 years after expiration.
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Simnet Ghana Limited had a 10-year contract with NLA in 2015, subject to automatic renewal for another 10 years after expiration.
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Alpha Lotto Limited and some private lotto operators signed a 10-year contract with NLA in 2024, subject to automatic renewal after expiration.
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All the Lotto Marketing Companies currently doing business with NLA in kiosks and using Point of Sale Terminals (POSTs) were issued licenses in 2006 in accordance with Section 58 (Transitional Provisions) and Section 57 of the National Lotto Act, 2006 (Act 722). These Lotto Marketing Companies have been in operation for the past 19 years.
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There are also Lotto Receivers who were previously working with the then Department of National Lotteries (DNL), and these Lotto Receivers were admitted as Lotto Marketing Companies under Act 722. These companies have been doing business with the National Lottery Authority (NLA) for the past 40–50 years.
Contract of KGL
KGL Technology Limited has no “contract” with the National Lottery Authority (NLA).
The arrangement between NLA and KGL is a licensing agreement issued by the Board of the National Lottery Authority (NLA) in accordance with Sections 5–14 of Act 722, and Regulations 12 & 13 of L.I. 1948.
All licensing agreements issued by NLA to Lotto Marketing Companies, collaborators, and private lotto operators have never gone through the procurement process since they are not procurement contracts but rather licensing agreements in accordance with Act 722 and L.I. 1948.
Therefore, it is very misleading for the Fourth Estate and the Media Foundation for West Africa (MFWA) to conclude that the NLA-KGL deal is a contract. That is very unprofessional and makes their submission highly unethical.
NLA Gave Away a GHS 3 Billion Business to KGL for Peanuts
For the avoidance of doubt, the National Lottery Authority (NLA) was not operating any GHS 3 billion business before KGL started operating in Ghana. The highest gross revenue ever generated by NLA before KGL was GHS 401,711,318 (400 million Ghana cedis) in 2017. As a matter of fact, and backed by data, the NLA has never generated GHS 3 billion annually since its establishment in 1957.
The National Lottery Authority (NLA) used 8 years to generate GHS 2,766,159,507 (2.7 billion Ghana cedis), and out of that GHS 2.7 billion, the NLA used GHS 1,378,104,374 (1.3 billion) to pay winning tickets to the staking public.
[Revenues, Lotto Prize Payments, Consolidated Fund payments — all figures checked and remain unchanged, but formatting smoothed.]
Conclusion
The Fourth Estate and the Media Foundation for West Africa (MFWA) must understand that the operations of KGL never started from GHS 3 billion, and also, if KGL stops operations, that supposed GHS 3 billion business would never automatically be available to the State.
Also, the Fourth Estate and the Media Foundation for West Africa (MFWA) must remember that NLA has zero (0) investment when it comes to:
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Cost of IT infrastructure and its periodic maintenance.
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Cost of daily payment of winning tickets to the staking public — KGL has been responsible for all liabilities and risks associated with the operations of 5/90 USSD.
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Cost of marketing.
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Cost of technical fees.
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Daily operating fees charged by MTN, Telecel, and AirtelTigo.
Payments of Taxes to GRA by KGL
From 2019 to date, KGL has never defaulted in the payment of taxes to the Ghana Revenue Authority (GRA), and the records are available at the Ghana Revenue Authority (GRA).
Finally, the investigation by the Fourth Estate and the Media Foundation for West Africa (MFWA) is completely bogus and believed to have been executed with malicious intentions.
By: Alistair Nelson
Executive Director
