The Lotto Marketing Companies (LMCs) in Ghana are mounting pressure on Government to take immediate action and abrogate the contract between the National Lottery Authority (NLA) and KGL Technologies Ghana Limited.
According to them, KGL had awfully failed to respect the contract agreements which had virtually collapsed NLA and also rendered the LMCs jobless.
Mr Kwaku Antwi-Boadu, Spokesperson of the LMCs said there were over 120,000 LMCs across the country and each of them has between 20 and 100 vendors operating under them. These vendors are also losing their jobs due to the KGL contract which is likely to increase the unemployment rate in the country.
He said the provisional license issued by the NLA to KGL indicating some payments to the NLA at some particular times has not been fulfilled.
“Currently, KGL is indebted to NLA to the tune of 55 million Ghana Cedis out of which GHC45 million is a license validity fees for the period 1st November 2019 to 31st December 2020 and for the validity period of 1st January, 2021 to 31st December 2021 to be paid into NLA’s accounts”.
The LMCs Spokesperson said the agreement also states that KGL shall pay 0.5% of their gross lottery sales on the USSD, mobile application and web platforms as provided for the period 1st January, 2022 to 31st December, 2026 into NLA’s account; and 25% of their gross lottery sales on the USSD, mobile application and web platforms as provided for the period 1st January, 2027 to 31st December, 2031 into NLA’s account.
He said, KGL (licensee) shall pay the amount in the sum of GHC1 million as provisional license fee for the plotting period 1st November, 2019 to 31st December, 2020. Thereafter, the renewable provisional license fee for the period 1st January 2021 to 31st December 2021 shall increase by 10%.
“Also, the substantive license fee for the period 1st January 2022 to 31st December 2022 shall be GHC1.210 million which shall be subject to a 10% increment on an annual basis during the term of the substantive license”.
Me Antwi-Boadier said the contract agreement between NLA and KGL was signed by the then Director General of NLA, Mr. Kofi Osei-Ameyaw and signed on behalf of KGL by its Executive Chairman, Mr. Alex Dadey.
He said the agreement was also witnessed by Mr Ernest Mote, the current Acting Director-General of NLA and Mr K William, a Business Executive at KGL and endorsed by the Board Chairman and Board Secretary of NLA, Togbe Francis Nyonyo and Ms. Modesta Fosu respectively.
He added that meanwhile, several efforts by the Lotto Marketing Companies to get the Management of NLA to review or abrogate the contract with KGL has since not yielded any result.
All these amounts stated in the contract signed between the two have not been fulfilled by KGL Technologies. The LMCs are therefore crying out loud to the government to look into the NLA/KGL contract in order to save the government from a heavy sum of revenue, and to also save LMCs and NLA from losing out.
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