Announcement of recent lottery licence operator postponed - all over again
Announcement of recent lottery licence operator postponed - all over again
Blog Article
Parks Tau, the trade and sector minister, has postponed naming a profitable bidder to operate South Africa’s lottery in the event the tenure of current operator, Ithuba, finishes in May possibly following year.
Ithuba’s licence was thanks to have expired in May well 2023 but was extended for 2 several years by Tau’s predecessor Ebrahim Patel following a request from the then recently-appointed board from the Nationwide Lotteries Fee (NLC).
The Board, which was working with the corruption that experienced overwhelmed the NLC, also recommended Patel of representations by Ithuba that it were seriously affected with the Covid pandemic. This bundled a ban around the sale of lottery tickets at the height from the pandemic.
With regard to the extension, Ithuba experienced to make contributions towards the NLC for distribution to excellent brings about at a better charge than offered for inside their Original licence.
New licence operators are presented 6 months to build infrastructure, together with ticket equipment countrywide, to just take more than within the past operator before the incumbent’s licence finishes. This most recent postponement ensures that there will not be adequate time for just a smooth changeover and It's not likely that Tau will increase Ithuba’s licence once more.
The whole process of appointing a fresh licence operator has also been tormented by allegations of conflict of fascination as well as other troubles.
GroundUp has figured out the NLC has contingency options in position to continue funding great triggers for around a year When the lottery along with the sale of lottery tickets are suspended.
The contingency also covers funding in the party of litigation by dropping bidders when a new operator is last but not least declared, which could also derail the smooth jogging from the lottery.
Just in case ticket sales are stopped, the NLC will use its reserves of R3.9-billion to carry on funding qualifying organisations, a resource with understanding of the contingency program told GroundUp.
In his weekend statement saying the postponement, Tau stated: “Sad to say, I'm not ready to create a remaining decision at this stage. Any this sort of conclusion at this time would in all excellent conscience signify that I have not used my mind with due consideration of the many applicable things.”
“I've identified issues that have to have even further evaluation. It will be inappropriate to disclose these issues now and their disclosure could pretty effectively prejudice the appropriate adjudication on the awarding from the licence.”
Tau claimed he was awaiting suggestions on The simplest way to ensure the continuation on the lottery within the interim as well as the “progress of a programme to finalise this process”.
This, he said, should be carried out right after consultation With all the National Treasury.”
Tau also hinted on the political makeup from the consortiums bidding to the licence as A different doable cause for the postponement.
He mentioned: “I must also make sure the homeowners and managers on the effective applicants are, given that the Act states, ‘match and good persons’. Also, I must be certain that no political celebration or political Business office-bearer has any immediate money desire inside the applicant or maybe a shareholder of the applicant.”
Business Working day described Formerly that almost all of the companies shortlisted for your tender are politically exposed.
The Gold Hurry consortium is led by significant-profile businessperson Sandile Zungu, who challenged to the ANC KwaZulu-Natal chair position in 2022 prior to dropping out after he didn't garner sufficient aid, the paper documented.
Another politically linked bidder is HCI, which happens to be greater part-owned from the South African Garments and Textile Personnel’ Union, an affiliate of Cosatu, which can be in alliance While using the ANC. CEO Johnny Copelyn donated to President Cyril Ramaphosa’s CR17 marketing campaign with the ANC presidency.
A further shortlisted bidder, Based on Small business Working day, is Thebe Expense Corporation, which was Established by ANC leaders in 1992. Thebe is 50 percent-owned by Batho Batho Belief. The rely on has donated R60-million into the ANC since 2021, In keeping with declarations manufactured towards the electoral commission.
Ithuba, the holder from the licence, is usually within the jogging, as is Umbulelo Consortium, led by Afrirent Holdings; and Giya Games, In line with Business Working day.
Vivien Natasen consulted for Giya Video games on its bid. GroundUp reported in 2022 that Natasen, by means ofluckyvip77 his enterprise Neo Options, contributed R2-million in direction of the luxurious mansion of your then-NLC chair Aflred Nevhutanda — while his business Neo Answers had a contract With all the NLC. Natasen informed GroundUp at that time that Neo Solutions was “appointed in the NLC’s offer chain processes, as and when solutions are required”.