Announcement of new lottery licence operator postponed - once again
Announcement of new lottery licence operator postponed - once again
Blog Article
Parks Tau, the trade and marketplace minister, has postponed naming a profitable bidder to operate South Africa’s lottery if the tenure of latest operator, Ithuba, ends in Could following year.
Ithuba’s licence was thanks to obtain expired in May well 2023 but was extended for two many years by Tau’s predecessor Ebrahim Patel after a request via the then freshly-appointed board from the National Lotteries Commission (NLC).
The Board, which was working with the corruption that experienced confused the NLC, also advised Patel of representations by Ithuba that it had been seriously influenced via the Covid pandemic. This integrated a ban within the sale of lottery tickets at the height on the pandemic.
Concerning the extension, Ithuba experienced to make contributions for the NLC for distribution to very good brings about at a better fee than furnished for inside their initial licence.
New licence operators are offered 6 months to setup infrastructure, which include ticket equipment countrywide, to choose more than from your earlier operator prior to the incumbent’s licence finishes. This hottest postponement means that there won't be ample time for a sleek transition and It really is unlikely that Tau will extend Ithuba’s licence again.
The whole process of appointing a new licence operator has also been plagued by allegations of conflict of fascination and various difficulties.
GroundUp has realized which the NLC has contingency options in place to continue funding excellent results in for up to a year In the event the lottery as well as sale of lottery tickets are suspended.
The contingency also handles funding in the party of litigation by getting rid of bidders any time a new operator is at last introduced, which could also derail the smooth running of the lottery.
In the event that ticket income 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 said: “Sad to say, I'm not in a position to generate a remaining selection at this stage. Any these decision at the moment would in all excellent conscience signify which i have not utilized my brain with because of consideration of each of the pertinent aspects.”
“I have identified issues that call for more evaluation. It could be inappropriate to disclose these issues now as well as their disclosure could extremely perfectly prejudice the right adjudication from the awarding with the licence.”
Tau mentioned he was awaiting information on The simplest way to ensure the continuation with the lottery within the interim plus the “development of a programme to finalise this process”.
This, he mentioned, have to be performed just after session with the Countrywide Treasury.”
Tau also hinted within the political make-up on the consortiums bidding to the licence as One more achievable cause of the postponement.
He said: “I need to also be certain that the proprietors and administrators on the effective applicants are, as being the Act states, ‘suit and good individuals’. On top of that, I must be certain that no political party or political Business office-bearer has any immediate money desire in the applicant or even a shareholder on the applicant.”
Small business Working day documented Earlier that a lot of of the companies shortlisted for your tender are politically exposed.
The Gold Hurry consortium is led by substantial-profile businessperson Sandile Zungu, who challenged for your ANC KwaZulu-Natal chair position in 2022 right before dropping out immediately after he failed to garner enough guidance, the paper documented.
Another politically linked bidder is HCI, which is the 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 for the ANC presidency.
An additional shortlisted bidder, In line with Business enterprise Working day, is Thebe Financial investment Company, which was Launched by ANC leaders in 1992. Thebe is 50 percent-owned by Batho Batho Have faith in. The have faith in has donated R60-million for the ANC given that 2021, Based on declarations made to your electoral commission.
Ithuba, the holder with the licence, is likewise inside the functioning, as is Umbulelo Consortium, led by Afrirent Holdings; and Giya Video games, In keeping with Enterprise Working day.
Vivien Natasen consulted for Giya Game titles on its bid. GroundUp reported in 2022 that Natasen, by way ofltpbet his enterprise Neo Remedies, contributed R2-million towards the posh mansion of your then-NLC chair Aflred Nevhutanda — although his enterprise Neo Options had a agreement While using the NLC. Natasen told GroundUp at that time that Neo Answers was “appointed throughout the NLC’s offer chain processes, as and when expert services are demanded”.
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