Announcement of recent lottery licence operator postponed - yet again
Announcement of recent lottery licence operator postponed - yet again
Blog Article
Parks Tau, the trade and marketplace minister, has postponed naming a profitable bidder to operate South Africa’s lottery in the event the tenure of present-day operator, Ithuba, ends in Might next 12 months.
Ithuba’s licence was due to acquire expired in Could 2023 but was prolonged for two several years by Tau’s predecessor Ebrahim Patel following a ask for with the then freshly-appointed board in the Nationwide Lotteries Fee (NLC).
The Board, which was coping with the corruption that had overwhelmed the NLC, also suggested Patel of representations by Ithuba that it had been severely impacted with the Covid pandemic. This involved a ban over the sale of lottery tickets at the peak with the pandemic.
In terms of the extension, Ithuba had to generate contributions for the NLC for distribution to great causes at a better level than presented for in their Preliminary licence.
New licence operators are presented 6 months to put in place infrastructure, like ticket devices countrywide, to acquire in excess of within the former operator ahead of the incumbent’s licence ends. This hottest postponement implies that there won't be adequate time for the sleek transition and It is unlikely that Tau will increase Ithuba’s licence once more.
The whole process of appointing a fresh licence operator has also been tormented by allegations of conflict of fascination as well as other concerns.
GroundUp has realized that the NLC has contingency ideas in place to carry on funding fantastic brings about for approximately a year if the lottery as well as sale of lottery tickets are suspended.
The contingency also addresses funding in the celebration of litigation by dropping bidders any time a new operator is ultimately declared, which could also derail the smooth jogging of the lottery.
Just in case ticket sales are stopped, the NLC will use its reserves of R3.9-billion to carry on funding qualifying organisations, a resource with understanding of the contingency approach told GroundUp.
In his weekend statement announcing the postponement, Tau explained: “Regretably, I'm not ready to make a last selection at this time. Any these kinds of conclusion presently would in all fantastic conscience necessarily mean which i haven't used my brain with due thing to consider of all the related factors.”
“I have identified issues that have to have more analysis. It will be inappropriate to disclose these issues now as well as their disclosure could really nicely prejudice the appropriate adjudication on the awarding of your licence.”
Tau stated he was awaiting assistance on The easiest way to make sure the continuation from the lottery while in the interim as well as “advancement of a programme to finalise this process”.
This, he mentioned, has to be completed immediately after consultation With all the National Treasury.”
Tau also hinted at the political make-up from the consortiums bidding with the licence as A different achievable reason for the postponement.
He claimed: “I must also be certain that the owners and professionals on the thriving applicants are, because the Act states, ‘suit and good folks’. On top of that, I need to make sure no political bash or political Business-bearer has any immediate economic interest in the applicant or simply a shareholder on the applicant.”
Enterprise Working day noted Beforehand that a lot of of the companies shortlisted to the tender are politically uncovered.
The Gold Hurry consortium is led by large-profile businessperson Sandile Zungu, who challenged with the ANC KwaZulu-Natal chair place in 2022 ahead of dropping out after he failed to garner adequate 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 With all 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 towards the electoral commission.
Ithuba, the holder in the licence, is likewise during the running, as is Umbulelo Consortium, led by Afrirent Holdings; and Giya Games, Based on Company Working day.
Vivien Natasen consulted for Giya Online games on its bid. GroundUp documented in 2022 that Natasen, by way ofตรวจ หวย ย้อน หลัง his firm Neo Alternatives, contributed R2-million towards the luxurious mansion of the then-NLC chair Aflred Nevhutanda — while his company Neo Solutions experienced a agreement With all the NLC. Natasen informed GroundUp At the moment that Neo Remedies was “appointed throughout the NLC’s supply chain processes, as and when solutions are demanded”.