ANNOUNCEMENT OF NEW LOTTERY LICENCE OPERATOR POSTPONED - AGAIN

Announcement of new lottery licence operator postponed - again

Announcement of new lottery licence operator postponed - again

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Parks Tau, the trade and field minister, has postponed naming a profitable bidder to run South Africa’s lottery if the tenure of present-day operator, Ithuba, finishes in Could following 12 months.

Ithuba’s licence was owing to acquire expired in May well 2023 but was extended for two years by Tau’s predecessor Ebrahim Patel following a request through the then newly-appointed board of your Nationwide Lotteries Commission (NLC).

The Board, which was dealing with the corruption that experienced confused the NLC, also recommended Patel of representations by Ithuba that it were severely influenced from the Covid pandemic. This bundled a ban within the sale of lottery tickets at the peak of the pandemic.

With regard to the extension, Ithuba experienced to produce contributions to your NLC for distribution to good triggers at a better amount than provided for in their initial licence.

New licence operators are offered 6 months to set up infrastructure, including ticket equipment countrywide, to acquire about with the preceding operator before the incumbent’s licence finishes. This most current postponement implies that there won't be adequate time for a clean transition and It can be unlikely that Tau will prolong Ithuba’s licence again.

The entire process of appointing a new licence operator has also been tormented by allegations of conflict of desire together with other issues.

GroundUp has realized the NLC has contingency options set up to carry on funding superior causes for as much as a year In the event the lottery along with the sale of lottery tickets are suspended.

The contingency also addresses funding while in the function of litigation by dropping bidders when a new operator is finally declared, which could also derail the smooth functioning with the lottery.

In the event ticket gross sales are stopped, the NLC will use its reserves of R3.9-billion to carry on funding qualifying organisations, a source with familiarity with the contingency strategy explained to GroundUp.

In his weekend statement saying the postponement, Tau claimed: “Sadly, I am not able to help make a last final decision at this time. Any such choice at the moment would in all excellent conscience indicate that I have not applied my mind with thanks thing to consider of many of the applicable components.”

“I have determined issues that have to have further analysis. It might be inappropriate to disclose these concerns now and their disclosure could pretty nicely prejudice the appropriate adjudication with the awarding in the licence.”

Tau said he was awaiting assistance on The ultimate way to ensure the continuation from the lottery within the interim as well as the “improvement of the programme to finalise this process”.

This, he claimed, has to be done following session Using the National Treasury.”

Tau also hinted in the political makeup of the consortiums bidding for the licence as An additional feasible reason for the postponement.

He said: “I need to also be sure that the homeowners and managers with the profitable applicants are, as the Act states, ‘healthy and correct people’. In addition, I have to ensure that no political occasion or political Workplace-bearer has any direct money interest while in the applicant or a shareholder in the applicant.”

Small business Working day described Beforehand that most of the businesses shortlisted for that tender are politically exposed.

The Gold Rush consortium is led by significant-profile businessperson Sandile Zungu, who challenged for that ANC KwaZulu-Natal chair posture in 2022 before dropping out after he failed to garner sufficient assistance, the paper claimed.

A different politically connected bidder is HCI, and that is the greater part-owned with the South African Outfits and Textile Employees’ Union, an affiliate of Cosatu, which happens to be in alliance Along with the ANC. CEO Johnny Copelyn donated to President Cyril Ramaphosa’s CR17 campaign for that ANC presidency.

Another shortlisted bidder, In line with Business Day, is Thebe Financial investment Corporation, which was Started by ANC leaders in 1992. Thebe is 50 percent-owned by Batho Batho Belief. The have confidence in has donated R60-million to your ANC because 2021, In accordance with declarations manufactured to your electoral commission.

Ithuba, the holder from the licence, can also be in the running, as is Umbulelo Consortium, led by Afrirent Holdings; and Giya Online games, In accordance with Enterprise Working day.

Vivien Natasen consulted for Giya Games on its bid. GroundUp described in 2022 that Natasen, viaตรวจ หวย ลาว วัน นี้ his organization Neo Options, contributed R2-million to the posh mansion of your then-NLC chair Aflred Nevhutanda — although his enterprise Neo Options had a agreement While using the NLC. Natasen informed GroundUp at that time that Neo Answers was “appointed from the NLC’s source chain procedures, as and when services are needed”.

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