The Presidency has cleared the contractual agreement between the National Lottery Authority (NLA) and KGL Technology Limited, paving the way for fresh negotiations to improve the State’s share of revenue.
Director-General of the NLA, Mr. Mohammed Abdul-Salam, disclosed that the agreement underwent extensive review following a presidential directive, involving key institutions such as the Ministry of Finance and the Attorney-General’s Department.
According to a statement copied to the Ghana News Agency in Accra, the NLA Board initially sought legal clarification from the Attorney-General on the contract before the matter was escalated for further guidance.
Subsequently, the Presidency directed the formation of a committee to undertake a comprehensive review of the agreement. That process has now been completed.
Mr. Abdul-Salam stated that the Presidency has affirmed the NLA’s authority to enter into partnerships with private entities like KGL for regulatory and operational purposes within the lottery sector.
However, he emphasized that concerns persist over the current revenue-sharing structure, with the NLA pushing for a more favorable arrangement to ensure greater financial benefit to the State.
“The Presidency has actually issued a directive indicating that it was within the NLA’s mandate to enter into such agreements with KGL and others for the purposes of providing regulation for the industry except that in terms of the revenue share, which we have always stated that the NLA needed to gain much more from that contractual agreement than it is presently having.
The state stands to benefit. In that pushing you’ve had the committee formed, the negotiations are currently ongoing to bring about an improvement in the share of the state in terms of what monies come in.”
He added: “We initiated processes and engagements, which went as far as the Ministry of Finance and the Presidency. We had to be directed to involve the AG.
Initially, the NLA, through its Board, wrote to the Attorney-General to state its position regarding the contractual agreement between KGL and the NLA.
“Then we had the Presidency directing the formation of a committee to review the contract and all that. Those processes have been walked; there is a completion.”
Negotiations are currently ongoing to revise the revenue-sharing terms, with the goal of securing improved returns for the State.
