Announcement of recent lottery licence operator postponed - once again
Announcement of recent lottery licence operator postponed - once again
Blog Article
Parks Tau, the trade and business minister, has postponed naming a winning bidder to run South Africa’s lottery in the event the tenure of latest operator, Ithuba, ends in May future yr.
Ithuba’s licence was thanks to own expired in May 2023 but was extended for 2 a long time by Tau’s predecessor Ebrahim Patel following a ask for through the then recently-appointed board of your National Lotteries Commission (NLC).
The Board, which was handling the corruption that experienced confused the NLC, also encouraged Patel of representations by Ithuba that it were seriously influenced via the Covid pandemic. This bundled a ban on the sale of lottery tickets at the peak of your pandemic.
When it comes to the extension, Ithuba had to make contributions to the NLC for distribution to superior will cause at a better charge than provided for of their Preliminary licence.
New licence operators are given six months to arrange infrastructure, like ticket equipment countrywide, to get around from your former operator before the incumbent’s licence ends. This most current postponement ensures that there won't be sufficient time for any easy transition and It truly is not likely that Tau will prolong Ithuba’s licence yet again.
The whole process of appointing a completely new licence operator has also been stricken by allegations of conflict of desire as well as other issues.
GroundUp has learned the NLC has contingency programs in place to carry on funding great causes for as many as a yr Should the lottery plus the sale of lottery tickets are suspended.
The contingency also covers funding from the event of litigation by dropping bidders any time a new operator is ultimately introduced, which could also derail The graceful running from the lottery.
In the event ticket profits are stopped, the NLC will use its reserves of R3.nine-billion to carry on funding qualifying organisations, a supply with familiarity with the contingency system explained to GroundUp.
In his weekend assertion saying the postponement, Tau mentioned: “Regrettably, I am not ready to help make a closing final decision at this stage. Any this kind of conclusion right now would in all great conscience necessarily mean that I haven't applied my head with due thought of all the suitable elements.”
“I have determined issues that need even more analysis. It will be inappropriate to disclose these problems now and their disclosure could quite very well prejudice the appropriate adjudication of your awarding of the licence.”
Tau said he was awaiting guidance on The easiest way to make sure the continuation in the lottery inside the interim as well as the “improvement of the programme to finalise this process”.
This, he said, need to be accomplished following session With all the Countrywide Treasury.”
Tau also hinted in the political make-up of your consortiums bidding to the licence as A further achievable cause for the postponement.
He said: “I must also be certain that the entrepreneurs and administrators of the productive applicants are, since the Act states, ‘in shape and suitable people’. Moreover, I have to make certain that no political get together or political Place of work-bearer has any direct money curiosity within the applicant or simply a shareholder on the applicant.”
Enterprise Working day documented Earlier that the majority of the companies shortlisted for the tender are politically uncovered.
The Gold Rush consortium is led by higher-profile businessperson Sandile Zungu, who challenged with the ANC KwaZulu-Natal chair situation in 2022 just before dropping out after he did not garner enough guidance, the paper noted.
A different politically related bidder is HCI, that is greater part-owned via the South African Clothes and Textile Workers’ 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 to the ANC presidency.
A different shortlisted bidder, As outlined by Business enterprise Working day, is Thebe Expenditure Corporation, which was founded by ANC leaders in 1992. Thebe is 50 percent-owned by Batho Batho Belief. The rely on has donated R60-million on the ANC given that 2021, In keeping with declarations designed to the electoral commission.
Ithuba, the holder on the licence, is likewise within the jogging, as is Umbulelo Consortium, led by Afrirent Holdings; and Giya Games, In line with Company Working day.
Vivien Natasen consulted for Giya Games on its bid. GroundUp noted in 2022 that Natasen, byตรวจ หวย his business Neo Alternatives, contributed R2-million towards the luxury mansion from the then-NLC chair Aflred Nevhutanda — although his enterprise Neo Options experienced a agreement with the NLC. Natasen advised GroundUp at that time that Neo Options was “appointed through the NLC’s source chain processes, as and when providers are essential”.