Greater clarity is needed in the lottery system.
A controversy over nepotism at Lotto Sachsen-Anhalt is making headlines, with discussions spreading to other federal states. According to an MDR report, the Thuringian Audit Office is demanding more transparency in the allocation of lottery funds. However, the usage receipts, despite strict regulations, leave many questions unanswered. What are the concerns behind this?
How are lottery funds used?
A fact-finding committee has been examining Lotto Sachsen-Anhalt since the start of the year, focusing on the illegal allocation of funds. The lack of transparency in the procedures is now also under fire by the Thuringian Audit Office. The main question is how exactly lottery funds are utilized. Both the Audit Office and the ministries appear to be clueless. Inquiries sent to the recipients by MDR went unanswered.
The Thuringian Gambling Law clearly specifies how lottery funds should be distributed. They can only go to cultural, social, environmental, or sporting institutions. The Land Sports Association (LSB) receives the majority of the funds, around 9.6 million euros each year. This amount is shared with various Thuringian sports federations (4.8 million euros) and 1,972 Thuringian sports clubs.
Last year, 2.7 million euros were also given to youth sports, trainer financing, and sports medicine. Thuringian youth sports received a grant of 330,000 euros. Despite these guidelines, there are no clear details about how the funds were ultimately utilized.
Why aren't the details disclosed?
The recipients' lack of disclosure adds to the transparency issue. The LSB alone has thousands of clubs and federations across Thuringia. This includes the Thuringian Olympic Support Center, the Thuringian Sports Youth, LSB Thuringia Education and Training GmbH, and LSB Thuringia Sports Management GmbH. With over 360,000 members, sports clubs in the state add to the complexity.
The Foundation for Nature Conservation Thuringia received 108,000 euros, the Thuringian Association of Garden Friends received 19,000 euros, and the League of Free Welfare Organizations received 5.4 million euros. This includes six major welfare federations, and the Diakonie, Parity Welfare Federation, Jewish Welfare Federation, AWO, Red Cross, and Caritas. The LSB and League of Free Welfare Services claim there is ample transparency, but they will not share their annual financial reports with journalists. Data protection and tax laws are cited as reasons for denying access.
The surplus from the previous year was around 15.4 million euros, according to the Thuringian Lottery Administration. MDR's attempts to find out how the money was spent yielded no answers. The institutions in question refused to share their annual financial report with journalists.
The need for stricter audit criteria
The Thuringian Audit Office claims there are currently insufficient legal criteria to verify the massive spending purposes. A recent report suggested improving the proof of obligation. Implementation will be handled by the newly established Thuringian State Lottery.
The Thuringian Gaming Law was already updated to address this issue in July. According to Jochen Staschweski, the managing director of the Thuringian State Lottery, it's now possible to trace the money flow from Lotto to the final recipient. A discussion with the recipients is planned for September 16th. The situation is being closely monitored.
Issues with transparency in Saxony-Anhalt
The criticism from the Audit Office is valid. Recent events in Saxony-Anhalt, which surround Lotto's alleged nepotism, show that a lack of transparency can lead to severe consequences. Disputes involve the former Lotto chief Maren Sieb, who is accused of funding advertising contracts. Since November, a Lotto committee of the state parliament has been questioning witnesses.
The AfD faction in the state parliament initially raised concerns. A criminal complaint against the Loto chief for suspected embezzlement was filed at the Magdeburg Administrative Court. Claims by the AfD include revealing connections between Sieb and the other recipients. The concerns have at least partially been confirmed.
In conclusion, there are serious concerns about the allocation of lottery funds in Thuringia and Saxony-Anhalt, and both regions need to address these issues to ensure transparency and accountability.
The Lotto of Saxony-Anhalt plays a significant role as a sponsor, like for the handball team SC Magdeburg. In fact, Lotto's head is even a part of their supervisory board. The investigation committee has expressed doubts about the compliance aspect of this partnership that started in 2013. They are also critical of the Lotto's supervisory board, which allowed Sieb to engage in the sponsorship without any checks beforehand.
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Source: www.onlinecasinosdeutschland.com
