Announcement of latest lottery licence operator postponed - once more
Announcement of latest 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 once the tenure of latest operator, Ithuba, finishes in May subsequent yr.
Ithuba’s licence was due to possess expired in May 2023 but was prolonged for two decades by Tau’s predecessor Ebrahim Patel following a ask for because of the then recently-appointed board on the Nationwide Lotteries Fee (NLC).
The Board, which was addressing the corruption that had confused the NLC, also suggested Patel of representations by Ithuba that it were severely impacted through the Covid pandemic. This incorporated a ban on the sale of lottery tickets at the height from the pandemic.
With regard to the extension, Ithuba experienced to produce contributions to your NLC for distribution to great brings about at the next price than delivered for within their Preliminary licence.
New licence operators are presented six months to put in place infrastructure, which include ticket devices countrywide, to just take more than from the former operator prior to the incumbent’s licence finishes. This most up-to-date postponement signifies that there will not be ample time for any smooth transition and It's not likely that Tau will lengthen Ithuba’s licence all over again.
The process of appointing a completely new licence operator has also been suffering from allegations of conflict of fascination and also other difficulties.
GroundUp has learned which the NLC has contingency plans in place to carry on funding good brings about for up to a yr If your lottery and also the sale of lottery tickets are suspended.
The contingency also covers funding within the celebration of litigation by dropping bidders when a new operator is lastly declared, which could also derail the smooth functioning with the lottery.
In the event ticket product sales are stopped, the NLC will use its reserves of R3.9-billion to carry on funding qualifying organisations, a source with knowledge of the contingency system advised GroundUp.
In his weekend assertion asserting the postponement, Tau explained: “Unfortunately, I am not able to make a last decision at this stage. Any these kinds of decision at this time would in all great conscience indicate that I haven't utilized my brain with thanks thing to consider of many of the applicable things.”
“I have recognized matters that call for more analysis. It would be inappropriate to disclose these challenges now and their disclosure could pretty very well prejudice the proper adjudication with the awarding from the licence.”
Tau claimed he was awaiting advice on The simplest way to make sure the continuation of your lottery inside the interim and the “advancement of a programme to finalise this process”.
This, he claimed, must be carried out soon after consultation While using the National Treasury.”
Tau also hinted in the political make-up of your consortiums bidding with the licence as A further possible cause for the postponement.
He stated: “I need to also make sure that the house owners and administrators of the productive applicants are, as being the Act states, ‘healthy and good folks’. In addition, I need to ensure that no political party or political office-bearer has any immediate fiscal interest in the applicant or maybe a shareholder with the applicant.”
Organization Day described previously that the majority of of the companies shortlisted with the tender are politically exposed.
The Gold Rush consortium is led by substantial-profile businessperson Sandile Zungu, who challenged for the ANC KwaZulu-Natal chair place in 2022 in advance of dropping out following he failed to garner ample guidance, the paper claimed.
Another politically connected bidder is HCI, that is bulk-owned with the South African Apparel and Textile Employees’ Union, an affiliate of Cosatu, which can be in alliance Together with the ANC. CEO Johnny Copelyn donated to President Cyril Ramaphosa’s CR17 campaign with the ANC presidency.
One more shortlisted bidder, In accordance with Company Working day, is Thebe Investment decision Company, which was founded by ANC leaders in 1992. Thebe is 50 percent-owned by Batho Batho Believe in. The rely on has donated R60-million towards the ANC considering the fact that 2021, Based on declarations manufactured into the electoral Fee.
Ithuba, the holder of the licence, can also be inside the managing, as is Umbulelo Consortium, led by Afrirent Holdings; and Giya Online games, In line with Small business Day.
Vivien Natasen consulted for Giya Games on its bid. GroundUp claimed in 2022 that Natasen, as a result ofhihuay his enterprise Neo Solutions, contributed R2-million in the direction of the luxury mansion of the then-NLC chair Aflred Nevhutanda — whilst his business Neo Options experienced a agreement Together with the NLC. Natasen advised GroundUp at that time that Neo Alternatives was “appointed throughout the NLC’s supply chain procedures, as and when providers are demanded”.