NLC Exposes Extortion Fraud Targeting Catering Bidders in South Africa
South Africa’s National Lotteries Commission (NLC) has issued an urgent public fraud alert warning prospective suppliers against an extortion scheme attempting to trade official procurement contracts for illegal upfront cash payments.
The regulatory body alerted bidders to be on high caution following reports of an individual impersonating a procurement insider. Operating under the name Steven Baloi and contacting suppliers via the mobile number 076 106 1097, the perpetrator allegedly offers to guarantee NLC contract awards in exchange for cash bribes.
According to the Commission, the perpetrator has been soliciting upfront sums ranging between R3,000 and R8,000 from bidding vendors. In exchange for these payments, the fraudster promises prospective suppliers assured placement on the NLC’s approved vendor panels.
The NLC responded unequivocally to the demands, reminding the public that procurement processes are governed strictly by state compliance rules.
“DO NOT MAKE ANY PAYMENT. The NLC does not require bidders to pay any person to secure a tender, and no individual can guarantee the award of an NLC contract. NLC tenders are not for sale,” the Commission stated in its public directive.
Investigation into the fraudulent approaches reveals that the solicitation directly targets vendors involved in the request for quotation RFQ/2026/008/009.
This specific tender was issued by the NLC to establish an official panel of catering service providers. The contract scope covers the supply of food, beverages, and associated hosting services for official NLC operations, workshops, corporate conferences, and committee meetings across the agency’s regional structures. Because catering panels frequently attract small, medium, and micro-enterprises, fraudsters purposefully target these smaller commercial bidders who may be less familiar with formal oversight procedures.
While the NLC continues to evaluate incoming reports from targeted vendors, the Commission urges all affected bidders to preserve digital evidence rather than simply blocking the contact. Suppliers who have been approached by Steven Baloi or received messages from 076 106 1097 are instructed to retain all text messages, call logs, emails, and bank details associated with the interaction.
To facilitate law enforcement action and internal compliance reviews, the NLC has directed vendors to submit evidence directly through its official anti-fraud reporting hotline channels. Those affected can call 0800 212 129, SMS 30916 or email nlc@thehotline.co.za.
This public alert forms part of a broader mandate by the NLC leadership to restore institutional transparency and enforce zero tolerance toward procurement corruption. Fraudulent middleman schemes undermine fair market competition and exploit commercial enterprises seeking legitimate government business.
