Former Public Relations Officer of the National Lottery Authority (NLA), Mr Razak Kojo Opoku, has defended the partnership of KGL Technology Limited with the National Lottery Authority (NLA).
He stressed that the company has significantly contributed to the financial sustainability of the Authority and national development through revenue payments, taxes, and social interventions.
In a statement signed by Mr Opoku, he described as “misleading and inconsistent” recent publications by The Fourth Estate and the Media Foundation for West Africa (MFWA) that claimed the NLA was making no profit under its deal with KGL.
Mr Opoku said available figures proved otherwise, indicating that KGL paid GH¢157.6 million to the NLA in 2024 and was expected to pay GH¢170 million in 2025.
“In total, the NLA would obtain GH¢327.6 million from KGL for the financial years 2024 and 2025,” he stated, questioning the basis of claims that the Authority was not benefiting from the partnership.
He added that KGL made a profit of GH¢70 million in 2024 while paying over double that amount to the NLA, and further noted that the company’s tax obligations to the Ghana Revenue Authority (GRA) in the same year exceeded its net profit.
The statement explained that KGL’s payments have contributed to stabilising the NLA’s finances, which had been struggling with accumulated debts before the partnership.
Between 2012 and 2019, NLA’s debts reportedly stood at over GH¢233 million, covering unpaid prizes, contractors, taxes, and staff contributions.
“The NLA started making losses long before the KGL partnership was signed in November 2019,” Mr Opoku noted, insisting that the deal was not responsible for the Authority’s previous financial challenges.
On concerns about the NLA’s transfers to the Consolidated Fund, Mr Opoku argued that such transfers were management and policy decisions, separate from the NLA-KGL agreement.
He said the law required that winnings, commissions, and operational expenses be paid first before any balance could be transferred to the Consolidated Fund, as stipulated in Section 32(3) and (4) of the National Lotto Act, 2006 (Act 722).
“It would be unfair to blame KGL for the NLA’s inability to transfer funds when the Authority has not met other financial obligations such as prize payments, commissions, and staff benefits,” the statement said.
Beyond its business operations, KGL said it continued to reinvest 50 to 70 per cent of its profits into corporate social responsibility initiatives nationwide.
These include a multimillion-dollar mental health facility in Kumasi, in collaboration with the Asantehene, a facelift for the Accra Psychiatric Hospital, donations to the Akropong School for the Blind, support for flood victims in Keta, and sponsorships for national football teams and other sports initiatives.
Other interventions cited were scholarships for orphans and underprivileged children, an annual GH¢2 million contribution to the NLA Good Causes Foundation, and GH¢3 million to the NLA-KGL Stabilisation Fund.
Mr Opoku concluded that the NLA-KGL partnership remained a “mutually beneficial arrangement” that enhances the sustainability of the NLA and supports national development through tax payments, employment, and community investments.
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Source: myjoyonline.com
