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 business minister, has postponed naming a successful bidder to operate South Africa’s lottery in the event the tenure of present operator, Ithuba, ends in Could following 12 months.
Ithuba’s licence was owing to acquire expired in May 2023 but was prolonged for 2 years by Tau’s predecessor Ebrahim Patel following a request by the then newly-appointed board of the National Lotteries Fee (NLC).
The Board, which was addressing the corruption that experienced overwhelmed the NLC, also advised Patel of representations by Ithuba that it had been seriously impacted with the Covid pandemic. This provided a ban around the sale of lottery tickets at the height on the pandemic.
When it comes to the extension, Ithuba had to create contributions for the NLC for distribution to very good brings about at a better charge than offered for in their Original licence.
New licence operators are supplied six months to set up infrastructure, including ticket devices countrywide, to get more than within the past operator before the incumbent’s licence finishes. This newest postponement means that there won't be adequate time for a clean changeover and It truly is not likely that Tau will lengthen Ithuba’s licence yet again.
The process of appointing a fresh licence operator has also been stricken by allegations of conflict of interest along with other troubles.
GroundUp has figured out the NLC has contingency programs in place to carry on funding fantastic brings about for around a year Should the lottery as well as sale of lottery tickets are suspended.
The contingency also addresses funding in the party of litigation by shedding bidders when a new operator is finally introduced, which could also derail The graceful working of the lottery.
Just in case ticket gross sales are stopped, the NLC will use its reserves of R3.9-billion to continue funding qualifying organisations, a supply with expertise in the contingency strategy advised GroundUp.
In his weekend assertion saying the postponement, Tau said: “Sadly, I am not in a position to produce a last determination at this stage. Any these conclusion at this time would in all great conscience imply which i have not applied my thoughts with due thing to consider of many of the appropriate aspects.”
“I have determined matters that involve even more analysis. It might be inappropriate to reveal these troubles now as well as their disclosure could very properly prejudice the proper adjudication in the awarding with the licence.”
Tau said he was awaiting suggestions on The obvious way to make sure the continuation with the lottery during the interim and the “advancement of a programme to finalise this process”.
This, he said, should be carried out following consultation with the Countrywide Treasury.”
Tau also hinted within the political makeup with the consortiums bidding for your licence as A further attainable cause of the postponement.
He reported: “I have to also ensure that the homeowners and administrators in the successful applicants are, as being the Act states, ‘in shape and proper individuals’. In addition, I have to make certain that no political celebration or political office-bearer has any direct economic curiosity inside the applicant or even a shareholder from the applicant.”
Enterprise Day reported previously that most of the businesses shortlisted for your tender are politically uncovered.
The Gold Rush consortium is led by superior-profile businessperson Sandile Zungu, who challenged to the ANC KwaZulu-Natal chair place in 2022 before dropping out after he did not garner more than enough assistance, the paper described.
Another politically linked bidder is HCI, that is vast majority-owned by the South African Garments and Textile Personnel’ Union, an affiliate of Cosatu, which happens to be in alliance with the ANC. CEO Johnny Copelyn donated to President Cyril Ramaphosa’s CR17 campaign for your ANC presidency.
A further shortlisted bidder, Based on Organization Working day, is Thebe Investment decision 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 considering the fact that 2021, In keeping with declarations manufactured towards the electoral Fee.
Ithuba, the holder of the licence, can be during the running, as is Umbulelo Consortium, led by Afrirent Holdings; and Giya Video games, In keeping with Small business Working day.
Vivien Natasen consulted for Giya Games on its bid. GroundUp noted in 2022 that Natasen, as a result ofhihuay his firm Neo Alternatives, contributed R2-million to the luxurious mansion of your then-NLC chair Aflred Nevhutanda — while his business Neo Options experienced a deal While using the NLC. Natasen explained to GroundUp At the moment that Neo Options was “appointed through the NLC’s source chain processes, as and when solutions are demanded”.