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 run South Africa’s lottery when the tenure of present operator, Ithuba, finishes in May well following yr.
Ithuba’s licence was due to obtain expired in May possibly 2023 but was extended for 2 many years by Tau’s predecessor Ebrahim Patel following a request from the then recently-appointed board in the Countrywide Lotteries Commission (NLC).
The Board, which was working with the corruption that experienced overwhelmed the NLC, also suggested Patel of representations by Ithuba that it had been severely influenced via the Covid pandemic. This integrated a ban within the sale of lottery tickets at the height in the pandemic.
Concerning the extension, Ithuba experienced to make contributions to the NLC for distribution to good causes at a higher price than provided for of their First licence.
New licence operators are presented six months to build infrastructure, like ticket machines countrywide, to choose above in the former operator prior to the incumbent’s licence ends. This latest postponement signifies that there won't be sufficient time for your sleek transition and It truly is not likely that Tau will increase Ithuba’s licence all over again.
The entire process of appointing a different licence operator has also been stricken by allegations of conflict of interest along with other difficulties.
GroundUp has acquired which the NLC has contingency strategies in place to carry on funding fantastic brings about for approximately a yr When the lottery as well as the sale of lottery tickets are suspended.
The contingency also handles funding while in the occasion of litigation by getting rid of bidders whenever a new operator is at last introduced, which could also derail The graceful jogging from the lottery.
In the event that ticket revenue are stopped, the NLC will use its reserves of R3.9-billion to carry on funding qualifying organisations, a resource with expertise in the contingency strategy informed GroundUp.
In his weekend statement saying the postponement, Tau explained: “Regretably, I'm not ready for making a closing final decision at this time. Any these determination at the moment would in all great conscience imply which i have not used my head with due thing to consider of each of the related things.”
“I have determined issues that demand further more evaluation. It might be inappropriate to reveal these challenges now and their disclosure could quite perfectly prejudice the proper adjudication in the awarding on the licence.”
Tau claimed he was awaiting information on The easiest way to make sure the continuation on the lottery from the interim plus the “progress of the programme to finalise this process”.
This, he said, needs to be performed soon after consultation with the Nationwide Treasury.”
Tau also hinted at the political makeup of your consortiums bidding to the licence as another doable reason for the postponement.
He mentioned: “I have to also make sure that the house owners and administrators of the profitable applicants are, given that the Act states, ‘fit and proper individuals’. Furthermore, I have to make certain that no political social gathering or political Business-bearer has any immediate economical fascination while in the applicant or possibly a shareholder on the applicant.”
Organization Day claimed Earlier that almost all of the businesses shortlisted for your tender are politically uncovered.
The Gold Hurry consortium is led by higher-profile businessperson Sandile Zungu, who challenged for that ANC KwaZulu-Natal chair posture in 2022 just before dropping out just after he didn't garner sufficient help, the paper documented.
A different politically linked bidder is HCI, and that is the vast majority-owned by the South African Outfits and Textile Personnel’ Union, an affiliate of Cosatu, and that is in alliance Along 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 into the ANC considering that 2021, Based on declarations manufactured into the electoral Fee.
Ithuba, the holder of the licence, is additionally while in the jogging, as is Umbulelo Consortium, led by Afrirent Holdings; and Giya Game titles, according to Business Working day.
Vivien Natasen consulted for Giya Online games on its bid. GroundUp documented in 2022 that Natasen, by means ofตัว หวย his enterprise Neo Solutions, contributed R2-million in direction of the posh mansion on the then-NLC chair Aflred Nevhutanda — even though his firm Neo Remedies had a contract with the NLC. Natasen explained to GroundUp At the moment that Neo Answers was “appointed through the NLC’s source chain processes, as and when services are expected”.