Announcement of new lottery licence operator postponed - once more
Announcement of new lottery licence operator postponed - once more
Blog Article
Parks Tau, the trade and business minister, has postponed naming a winning bidder to run South Africa’s lottery when the tenure of current operator, Ithuba, finishes in May possibly 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 recently-appointed board with the National Lotteries Commission (NLC).
The Board, which was addressing the corruption that experienced overwhelmed the NLC, also suggested Patel of representations by Ithuba that it had been severely impacted with the Covid pandemic. This involved 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 to the NLC for distribution to good results in at an increased amount than presented for in their Original licence.
New licence operators are provided 6 months to put in place infrastructure, such as ticket devices countrywide, to take about in the past operator ahead of the incumbent’s licence ends. This most current postponement ensures that there will not be adequate time for the sleek changeover and It is unlikely that Tau will extend Ithuba’s licence once more.
The entire process of appointing a fresh licence operator has also been affected by allegations of conflict of desire and also other problems.
GroundUp has learned that the NLC has contingency options in position to carry on funding superior triggers for nearly a year When the lottery as well as the sale of lottery tickets are suspended.
The contingency also handles funding during the party of litigation by losing bidders any time a new operator is at last introduced, which could also derail the smooth running on the lottery.
Just in case ticket product sales are stopped, the NLC will use its reserves of R3.nine-billion to carry on funding qualifying organisations, a source with familiarity with the contingency program advised GroundUp.
In his weekend statement saying the postponement, Tau explained: “Sad to say, I'm not able for making a closing conclusion at this time. Any such decision presently would in all very good conscience suggest which i have not used my brain with due thought of all of the applicable variables.”
“I've identified matters that involve even further evaluation. It would be inappropriate to reveal these problems now as well as their disclosure could pretty effectively prejudice the appropriate adjudication in the awarding of your licence.”
Tau stated he was awaiting assistance on The ultimate way to make sure the continuation of your lottery within the interim and also the “advancement of the programme to finalise this process”.
This, he said, must be performed soon after consultation with the Nationwide Treasury.”
Tau also hinted on the political make-up in the consortiums bidding for your licence as another probable basis for the postponement.
He stated: “I need to also make certain that the owners and professionals of the prosperous applicants are, because the Act states, ‘healthy and appropriate people’. In addition, I must be certain that no political bash or political Workplace-bearer has any immediate economical desire during the applicant or simply a shareholder of the applicant.”
Business enterprise Day reported Beforehand that most of the businesses shortlisted to the tender are politically uncovered.
The Gold Hurry consortium is led by substantial-profile businessperson Sandile Zungu, who challenged with the ANC KwaZulu-Natal chair placement in 2022 right before dropping out just after he failed to garner ample aid, the paper documented.
One more politically connected bidder is HCI, which is the greater part-owned from the South African Clothes and Textile Employees’ Union, an affiliate of Cosatu, which can be in alliance Along with the ANC. CEO Johnny Copelyn donated to President Cyril Ramaphosa’s CR17 campaign for that ANC presidency.
A different shortlisted bidder, In keeping with Business enterprise Working day, is Thebe Expenditure Corporation, which was Launched by ANC leaders in 1992. Thebe is fifty percent-owned by Batho Batho Trust. The trust has donated R60-million into the ANC due to the fact 2021, In line with declarations built on the electoral Fee.
Ithuba, the holder of the licence, is likewise while in the running, as is Umbulelo Consortium, led by Afrirent Holdings; and Giya Video games, In keeping with Company Day.
Vivien Natasen consulted for Giya Games on its bid. GroundUp reported in 2022 that Natasen, viaสลาก กิน his enterprise Neo Options, contributed R2-million in direction of the posh mansion with the then-NLC chair Aflred Nevhutanda — though his enterprise Neo Solutions experienced a agreement While using the NLC. Natasen explained to GroundUp at that time that Neo Options was “appointed through the NLC’s source chain processes, as and when providers are required”.