Announcement of latest lottery licence operator postponed - yet again
Announcement of latest lottery licence operator postponed - yet again
Blog Article
Parks Tau, the trade and business minister, has postponed naming a successful bidder to run South Africa’s lottery once the tenure of existing operator, Ithuba, ends in May future 12 months.
Ithuba’s licence was because of to possess expired in May perhaps 2023 but was prolonged for 2 yrs by Tau’s predecessor Ebrahim Patel after a request from the then recently-appointed board of the Nationwide Lotteries Fee (NLC).
The Board, which was managing the corruption that experienced confused the NLC, also advised Patel of representations by Ithuba that it had been severely impacted because of the Covid pandemic. This integrated a ban within the sale of lottery tickets at the height in the pandemic.
With regard to the extension, Ithuba experienced for making contributions into the NLC for distribution to good causes at the next level than delivered for inside their Preliminary licence.
New licence operators are offered 6 months to setup infrastructure, such as ticket devices countrywide, to consider around through the prior operator prior to the incumbent’s licence finishes. This most recent postponement ensures that there will not be enough time for a smooth transition and It can be not likely that Tau will increase Ithuba’s licence again.
The entire process of appointing a different licence operator has also been stricken by allegations of conflict of desire along with other troubles.
GroundUp has uncovered the NLC has contingency ideas in place to carry on funding excellent leads to for up to a 12 months In case the lottery plus the sale of lottery tickets are suspended.
The contingency also covers funding during the function of litigation by getting rid of bidders each time a new operator is finally introduced, which could also derail The graceful operating on the lottery.
In the event that ticket product sales are stopped, the NLC will use its reserves of R3.nine-billion to carry on funding qualifying organisations, a resource with knowledge of the contingency strategy advised GroundUp.
In his weekend statement saying the postponement, Tau explained: “Sad to say, I'm not able to generate a ultimate determination at this stage. Any this sort of selection at this time would in all superior conscience signify that I haven't applied my intellect with because of thing to consider of the many pertinent factors.”
“I have determined issues that call for additional evaluation. It will be inappropriate to disclose these difficulties now as well as their disclosure could really very well prejudice the proper adjudication from the awarding in the licence.”
Tau explained he was awaiting information on The easiest way to make sure the continuation of your lottery during the interim and the “improvement of the programme to finalise this process”.
This, he mentioned, should be done after session With all the Countrywide Treasury.”
Tau also hinted with the political make-up on the consortiums bidding for the licence as A different feasible cause for the postponement.
He said: “I must also be sure that the owners and managers in the prosperous applicants are, given that the Act states, ‘match and correct persons’. Furthermore, I must make sure that no political get together or political Place of work-bearer has any direct financial fascination while in the applicant or even a shareholder from the applicant.”
Company Working day documented previously that a lot of of the companies shortlisted for that tender are politically exposed.
The Gold Hurry consortium is led by high-profile businessperson Sandile Zungu, who challenged to the ANC KwaZulu-Natal chair posture in 2022 just before dropping out immediately after he didn't garner sufficient assist, the paper described.
Another politically connected bidder is HCI, which can be the greater part-owned via the South African Outfits and Textile Personnel’ Union, an affiliate of Cosatu, which is in alliance with the ANC. CEO Johnny Copelyn donated to President Cyril Ramaphosa’s CR17 marketing campaign for that ANC presidency.
One more shortlisted bidder, In line with Enterprise Day, is Thebe Financial investment Corporation, which was Established by ANC leaders in 1992. Thebe is fifty percent-owned by Batho Batho Believe in. The rely on has donated R60-million to your ANC because 2021, In keeping with declarations manufactured into the electoral Fee.
Ithuba, the holder from the licence, can be from the functioning, as is Umbulelo Consortium, led by Afrirent Holdings; and Giya Games, Based on Company Day.
Vivien Natasen consulted for Giya Games on its bid. GroundUp reported in 2022 that Natasen, as a result oflottovip his company Neo Options, contributed R2-million toward the posh mansion with the then-NLC chair Aflred Nevhutanda — when his enterprise Neo Methods experienced a contract With all the NLC. Natasen told GroundUp At the moment that Neo Remedies was “appointed with the NLC’s supply chain processes, as and when solutions are required”.