Announcement of new lottery licence operator postponed - again
Announcement of new lottery licence operator postponed - again
Blog Article
Parks Tau, the trade and industry minister, has postponed naming a profitable bidder to operate South Africa’s lottery if the tenure of existing operator, Ithuba, finishes in May well following year.
Ithuba’s licence was owing to possess expired in May perhaps 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 had overwhelmed the NLC, also suggested Patel of representations by Ithuba that it had been severely affected through the Covid pandemic. This provided a ban to the sale of lottery tickets at the peak on the pandemic.
Concerning the extension, Ithuba experienced for making contributions on the NLC for distribution to very good triggers at a greater rate than delivered for within their initial licence.
New licence operators are supplied six months to set up infrastructure, which includes ticket machines countrywide, to take over through the preceding operator prior to the incumbent’s licence ends. This most recent postponement means that there will not be ample time for just a clean transition and It is actually unlikely that Tau will extend Ithuba’s licence yet again.
The process of appointing a completely new licence operator has also been tormented by allegations of conflict of interest as well as other difficulties.
GroundUp has uncovered the NLC has contingency options in position to continue funding fantastic causes for as many as a calendar year Should the lottery along with the sale of lottery tickets are suspended.
The contingency also addresses funding while in the celebration of litigation by shedding bidders every time a new operator is eventually declared, which could also derail The sleek managing in the lottery.
In the event ticket revenue are stopped, the NLC will use its reserves of R3.nine-billion to carry on funding qualifying organisations, a supply with knowledge of the contingency system explained to GroundUp.
In his weekend assertion asserting the postponement, Tau mentioned: “However, I'm not able to generate a ultimate determination at this stage. Any this kind of decision presently would in all very good conscience suggest which i have not used my thoughts with thanks thought of all the appropriate elements.”
“I have discovered matters that call for further evaluation. It might be inappropriate to reveal these challenges now and their disclosure could extremely properly prejudice the appropriate adjudication of your awarding of the licence.”
Tau stated he was awaiting suggestions on the best way to make sure the continuation of your lottery during the interim as well as “enhancement of a programme to finalise this method”.
This, he claimed, have to be carried out after session With all the Countrywide Treasury.”
Tau also hinted on the political make-up from the consortiums bidding for that licence as An additional doable reason for the postponement.
He mentioned: “I have to also ensure that the proprietors and supervisors on the thriving applicants are, as the Act states, ‘match and correct persons’. Additionally, I must ensure that no political party or political office-bearer has any immediate fiscal curiosity inside the applicant or even a shareholder from the applicant.”
Company Working day described Earlier that most of the companies shortlisted with the tender are politically exposed.
The Gold Rush consortium is led by superior-profile businessperson Sandile Zungu, who challenged for your ANC KwaZulu-Natal chair situation in 2022 before dropping out right after he did not garner plenty of support, the paper reported.
Yet another politically connected bidder is HCI, that's the greater part-owned because of the South African Garments and Textile Staff’ Union, an affiliate of Cosatu, that's in alliance Together with the ANC. CEO Johnny Copelyn donated to President Cyril Ramaphosa’s CR17 campaign with the ANC presidency.
A different shortlisted bidder, In line 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 trust has donated R60-million on the ANC since 2021, In line with declarations built to the electoral commission.
Ithuba, the holder from the licence, is additionally while in the jogging, as is Umbulelo Consortium, led by Afrirent Holdings; and Giya Online games, As outlined by Business enterprise Working day.
Vivien Natasen consulted for Giya Video games on its bid. GroundUp reported in 2022 that Natasen, throughเช ค หวย his corporation Neo Methods, contributed R2-million towards the luxury mansion of the then-NLC chair Aflred Nevhutanda — whilst his company Neo Solutions experienced a agreement With all the NLC. Natasen informed GroundUp At the moment that Neo Alternatives was “appointed throughout the NLC’s supply chain processes, as and when solutions are demanded”.