If KGL Technology Limited withdraws from its agreement with the National Lottery Authority (NLA), the entire institution could collapse, a former Public Relations Officer of the NLA, Dr. Razak Kojo Opoku through an official release cautioned.
“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.
Let’s me reiterate that, it is absolutely false that in the absence of KGL Technology Limited: NLA can generate GHS 6 billion annually in revenue, deliver over GHS 3 billion in gross profit, and if properly optimized, can earn up to GHS 12 billion in revenue, and GHS 5 billion in profits annually for national development,” Dr. Razak stated highlighting that KGL Technology Limited is the backbone of NLA’s current operations.
In a detailed statement released over the weekend, sighted by The New Publisher, Dr. Opoku defended the contract between the NLA and KGL, saying it is legally sound, economically beneficial, and critical for the survival of the NLA.
“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.
KGL-NLA Contract is 100% backed by Act 722 and Lottery Regulations, 2008(L.I. 1948),” he added.
Dr. Opoku’s comments came amid calls from critics who claim the NLA’s partnership with KGL lacks transparency as well as legal merit and should be cancelled. However, he insists that these critics are either misinformed or deliberately misleading the public.
He explained that the partnership is fully backed by Act 722 and the Lottery Regulations of 2008 (L.I. 1948), which allow the NLA to operate through private third-party companies, such as Lotto Marketing Companies (LMCs), technical service providers, and online operators like KGL.
He further emphasized that “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 allowed such legal violations to occur in relations to KGL-NLA Contract.”
Instead of KGL, Mr. Opoku believes that other third-party contracts signed by the NLA are the real financial burdens. He cited contracts with entities like Simnet Ghana Limited and Lots Services Ghana Limited, which, according to him, drain funds from the NLA instead of adding value.
“After carefully scrutinizing all the third-party contracts with the National Lottery Authority(NLA), we can authoritatively state that, the contract between NLA and KGL Technology Limited is the best so far since the establishment of the National Lottery Authority(NLA), further creating value for money to the Authority.
All third-party contracts at NLA takes money away from the Authority EXCEPT KGL Technology Limited which rather gives substantial amount of money to the Authority on yearly basis at no cost and stress to the Authority.
Below is the Direct Cost Expenditures of the National Lottery Authority(NLA) on daily basis:
- Payments of Lotto Prizes (winning lottery tickets) – 50% of the gross revenue generated.
- Payments of lotto Commission to the Lotto Marketing Companies operating via the kiosks using the Lots Services Ghana Limited platform or Simnet Ghana Limited platform – 25% of the gross revenue generated.
- Payments of Technical Services Fees to Lots Services Ghana Limited – 5% of the gross revenue generated.
- Payments of Technical Services Fees to Simnet Ghana Limited – 6% of the gross revenue generated.
- Payments of Technical Services Fees to other service providers – 6% of the gross revenue generated.
- Payments of GPRS Fees to the Telecos – 1.5% of gross revenue generated.
- Payments of Thermal Paper Rolls Fees to Suppliers – 1.5% of the gross revenue generated.
- Payments of Maintenance Fees (POSTs Fees) to Lots Services Ghana Limited – 1% of the gross revenue generated.
Therefore, Total Direct Cost Expenditure on Lotto Intake (84%) excluding Other Revenues. The remaining 16% shared between NLA (about 6%) and the Consolidated Fund(10%). This implies that, the National Lottery Authority(NLA) only retains 6% of the gross revenue generated from daily sales of lottery products. The 6% is subsequently used by the Authority to service its indirect Cost Expenditures.
Per the existing arrangements between NLA and the third-party contracts, the Authority is always indebted to the Technical Service Providers, Telecos, Suppliers of thermal paper rolls, staking public, and Lotto Marketing Companies, and this indebtedness always become worsening whenever the winning ratios after draw exceeds 50% of the gross revenue generated,” he said.
Dr. Opoku outlined several benefits of keeping the KGL contract in place. These include: more revenue to the state without public funding, stronger legal and digital regulatory reach for the NLA, competition against illegal lotto operations, timely payments of winners on behalf of NLA and support for Corporate Social Responsibility (CSR) projects.
Dr. Opoku ended his statement by urging Ghanaians, especially lotto stakers, not to be worried by the ongoing attacks on KGL.
He suggested that if the government decides to cancel the KGL contract, it must be ready to pay over US$20 billion in judgement debt.
“Yɛbɛ ti nsem bebreee” against KGL so Ghanaians particularly the staking public should not perturbed.” he stated.
