Announcement of recent lottery licence operator postponed - once more
Announcement of recent lottery licence operator postponed - once more
Blog Article
Parks Tau, the trade and industry minister, has postponed naming a winning bidder to run South Africa’s lottery once the tenure of existing operator, Ithuba, finishes in May well up coming year.
Ithuba’s licence was owing to possess expired in May well 2023 but was extended for two years by Tau’s predecessor Ebrahim Patel after a request by the then newly-appointed board on the Countrywide Lotteries Fee (NLC).
The Board, which was handling the corruption that experienced confused the NLC, also encouraged Patel of representations by Ithuba that it were seriously influenced via the Covid pandemic. This included a ban on the sale of lottery tickets at the peak of your pandemic.
When it comes to the extension, Ithuba experienced to make contributions into the NLC for distribution to superior will cause at a better price than provided for of their Preliminary licence.
New licence operators are given six months to arrange infrastructure, like ticket equipment countrywide, to just take around from your former operator before the incumbent’s licence ends. This most current postponement ensures that there will not be sufficient time for any clean changeover and It can be not likely that Tau will prolong Ithuba’s licence all over again.
The whole process of appointing a new licence operator has also been plagued by allegations of conflict of interest along with other concerns.
GroundUp has discovered which the NLC has contingency options in position to continue funding fantastic brings about for as much as a calendar year In the event the lottery and also the sale of lottery tickets are suspended.
The contingency also handles funding within the celebration of litigation by losing bidders each time a new operator is finally announced, which could also derail The sleek jogging of the lottery.
In case ticket income are stopped, the NLC will use its reserves of R3.9-billion to continue funding qualifying organisations, a supply with understanding of the contingency prepare advised GroundUp.
In his weekend statement announcing the postponement, Tau stated: “Sadly, I am not ready for making a ultimate determination at this stage. Any these types of final decision at the moment would in all great conscience necessarily mean that I haven't applied my head with due thought of all the appropriate factors.”
“I have determined issues that need even further analysis. It would be inappropriate to disclose these concerns now and their disclosure could incredibly perfectly prejudice the appropriate adjudication of the awarding from the licence.”
Tau stated he was awaiting suggestions on the best way to make sure the continuation on the lottery while in the interim along with the “advancement of the programme to finalise this method”.
This, he stated, must be performed soon after session Along with the National Treasury.”
Tau also hinted with the political make-up in the consortiums bidding with the licence as An additional doable reason for the postponement.
He mentioned: “I have to also ensure that the proprietors and professionals on the prosperous applicants are, given that the Act states, ‘fit and proper persons’. In addition, I need to make sure no political bash or political Business-bearer has any immediate monetary desire from the applicant or even a shareholder of the applicant.”
Business enterprise Day described Formerly that the majority of of the companies shortlisted for that tender are politically uncovered.
The Gold Rush consortium is led by large-profile businessperson Sandile Zungu, who challenged with the ANC KwaZulu-Natal chair position in 2022 ahead of dropping out just after he didn't garner sufficient help, the paper documented.
A different politically linked bidder is HCI, and that is the vast majority-owned via the South African Outfits and Textile Staff’ Union, an affiliate of Cosatu, and that is in alliance Along with the ANC. CEO Johnny Copelyn donated to President Cyril Ramaphosa’s CR17 campaign for the ANC presidency.
A different shortlisted bidder, In line with Enterprise Working day, is Thebe Expenditure Company, which was founded by ANC leaders in 1992. Thebe is 50 percent-owned by Batho Batho Trust. The rely on has donated R60-million to the ANC considering that 2021, according to declarations created on the electoral Fee.
Ithuba, the holder on the licence, is usually in the running, as is Umbulelo Consortium, led by Afrirent Holdings; and Giya Games, according to Business Working day.
Vivien Natasen consulted for Giya Online games on its bid. GroundUp noted in 2022 that Natasen, viaตรวจ his enterprise Neo Solutions, contributed R2-million in the direction of the luxury mansion from the then-NLC chair Aflred Nevhutanda — whilst his business Neo Options experienced a agreement Together with the NLC. Natasen informed GroundUp At the moment that Neo Remedies was “appointed with the NLC’s source chain processes, as and when solutions are expected”.