Announcement of latest lottery licence operator postponed - yet again
Announcement of latest lottery licence operator postponed - yet again
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Parks Tau, the trade and market minister, has postponed naming a successful bidder to operate South Africa’s lottery once the tenure of existing operator, Ithuba, finishes in May well following year.
Ithuba’s licence was owing to get expired in May 2023 but was extended for 2 many 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 working with the corruption that experienced confused the NLC, also advised Patel of representations by Ithuba that it were seriously afflicted by the Covid pandemic. This integrated a ban within the sale of lottery tickets at the height from the pandemic.
Regarding the extension, Ithuba had to produce contributions to your NLC for distribution to good leads to at an increased rate than supplied for in their initial licence.
New licence operators are given 6 months to put in place infrastructure, like ticket devices countrywide, to just take in excess of with the preceding operator prior to the incumbent’s licence ends. This most recent postponement means that there will not be adequate time for your smooth changeover and It truly is not likely that Tau will lengthen Ithuba’s licence yet again.
The 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 plans set up to carry on funding excellent brings about for around a year When the lottery and also the sale of lottery tickets are suspended.
The contingency also handles funding during the function of litigation by losing bidders each time a new operator is lastly declared, which could also derail the smooth functioning from the lottery.
In the event that ticket sales are stopped, the NLC will use its reserves of R3.9-billion to continue funding qualifying organisations, a source with familiarity with the contingency approach told GroundUp.
In his weekend statement announcing the postponement, Tau explained: “Unfortunately, I'm not ready to make a final choice at this stage. Any this kind of choice at the moment would in all great conscience mean which i have not used my thoughts with thanks thought of all of the applicable aspects.”
“I've recognized matters that involve even further analysis. It would be inappropriate to disclose these difficulties now as well as their disclosure could very effectively prejudice the right adjudication with the awarding of your licence.”
Tau reported he was awaiting advice on The easiest way to make sure the continuation on the lottery while in the interim along with the “growth of a programme to finalise this method”.
This, he mentioned, should be done immediately after consultation While using the Nationwide Treasury.”
Tau also hinted at the political makeup with the consortiums bidding for your licence as A further feasible cause for the postponement.
He said: “I must also be sure that the owners and managers in the profitable applicants are, as being the Act states, ‘in good shape and good folks’. On top of that, I need to be sure that no political occasion or political Office environment-bearer has any direct monetary desire from the applicant or even a shareholder from the applicant.”
Business enterprise Day claimed Formerly that most of the businesses 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 placement in 2022 right before dropping out right after he did not garner plenty of support, the paper reported.
Yet another politically connected bidder is HCI, which can be 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 Enterprise Working day, is Thebe Financial investment Corporation, which was Launched by ANC leaders in 1992. Thebe is half-owned by Batho Batho Rely on. The have confidence in has donated R60-million to your ANC given that 2021, As outlined by declarations made for the electoral commission.
Ithuba, the holder on 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 Game titles on its bid. GroundUp described in 2022 that Natasen, by way ofตัว หวย his corporation Neo Solutions, contributed R2-million towards the luxury 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 with the NLC’s source chain processes, as and when solutions are demanded”.