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 if the tenure of existing operator, Ithuba, ends in May future 12 months.
Ithuba’s licence was due to have expired in May well 2023 but was extended for two years by Tau’s predecessor Ebrahim Patel after a ask for from the then recently-appointed board of your National Lotteries Commission (NLC).
The Board, which was addressing the corruption that experienced overwhelmed the NLC, also advised Patel of representations by Ithuba that it were severely impacted because of the Covid pandemic. This integrated a ban within the sale of lottery tickets at the height on the pandemic.
In terms of the extension, Ithuba experienced to create contributions towards the NLC for distribution to good leads to at a higher price than provided for of their First licence.
New licence operators are provided six months to arrange infrastructure, which include ticket devices countrywide, to consider around through the previous operator prior to the incumbent’s licence finishes. This most recent postponement ensures that there won't be adequate time for your smooth transition and It is unlikely that Tau will prolong Ithuba’s licence once more.
The entire process of appointing a completely new licence operator has also been suffering from allegations of conflict of interest together with other challenges.
GroundUp has learned which the NLC has contingency designs set up to continue funding very good will cause for approximately a yr When the lottery and also the sale of lottery tickets are suspended.
The contingency also covers funding in the celebration of litigation by losing bidders every time a new operator is lastly introduced, which could also derail The graceful running in the lottery.
Just in case ticket sales are stopped, the NLC will use its reserves of R3.9-billion to continue funding qualifying organisations, a resource with knowledge of the contingency program advised GroundUp.
In his weekend statement announcing the postponement, Tau mentioned: “Regrettably, I am not in a position to make a final decision at this time. Any these determination at the moment would in all good conscience necessarily mean that I haven't utilized my mind with owing consideration of many of the appropriate factors.”
“I have determined matters that demand further evaluation. It could be inappropriate to reveal these problems now and their disclosure could incredibly well prejudice the proper adjudication on the awarding with the licence.”
Tau said he was awaiting suggestions on The simplest way to ensure the continuation in the lottery while in the interim as well as “development of the programme to finalise this process”.
This, he mentioned, should be done just after consultation Using the Countrywide Treasury.”
Tau also hinted with the political makeup on the consortiums bidding for your licence as another doable cause of the postponement.
He claimed: “I must also be sure that the owners and professionals with the effective applicants are, as being the Act states, ‘in good shape and proper persons’. Furthermore, I have to be certain that no political occasion or political Business-bearer has any immediate fiscal curiosity within the applicant or even a shareholder of the applicant.”
Company Working day documented previously that the majority of the businesses shortlisted for the tender are politically exposed.
The Gold Hurry consortium is led by higher-profile businessperson Sandile Zungu, who challenged for that ANC KwaZulu-Natal chair position in 2022 ahead of dropping out after he failed to garner ample support, the paper reported.
One more politically linked bidder is HCI, which happens to be bulk-owned through the South African Apparel and Textile Employees’ Union, an affiliate of Cosatu, that's in alliance Together with the ANC. CEO Johnny Copelyn donated to President Cyril Ramaphosa’s CR17 campaign for your ANC presidency.
Yet another shortlisted bidder, In accordance with Company Working day, is Thebe Expenditure Company, which was Started by ANC leaders in 1992. Thebe is 50 %-owned by Batho Batho Have confidence in. The believe in has donated R60-million to your ANC because 2021, As outlined by declarations produced for the electoral Fee.
Ithuba, the holder with the licence, is also inside the jogging, as is Umbulelo Consortium, led by Afrirent Holdings; and Giya Online games, In keeping with Business Working day.
Vivien Natasen consulted for Giya Online games on its bid. GroundUp documented in 2022 that Natasen, by means ofตรวจ หวย รัฐบาล his enterprise Neo Solutions, contributed R2-million in the direction of the luxury mansion from the then-NLC chair Aflred Nevhutanda — although his organization Neo Answers had a deal Along with the NLC. Natasen instructed GroundUp at that time that Neo Solutions was “appointed in the NLC’s provide chain procedures, as and when expert services are necessary”.