Announcement of new lottery licence operator postponed - once more
Announcement of new lottery licence operator postponed - once more
Blog Article
Parks Tau, the trade and field minister, has postponed naming a winning bidder to run South Africa’s lottery when the tenure of existing operator, Ithuba, ends in May possibly following yr.
Ithuba’s licence was due to obtain expired in May well 2023 but was extended for 2 several years by Tau’s predecessor Ebrahim Patel following a request by the then newly-appointed board with the National Lotteries Commission (NLC).
The Board, which was dealing with the corruption that had overcome the NLC, also encouraged Patel of representations by Ithuba that it had been severely afflicted from the Covid pandemic. This provided a ban to the sale of lottery tickets at the peak from the pandemic.
With regard to the extension, Ithuba experienced to help make contributions to your NLC for distribution to fantastic will cause at an increased fee than presented for in their Original licence.
New licence operators are presented six months to build infrastructure, like ticket equipment countrywide, to just take more than within the earlier operator ahead of the incumbent’s licence ends. This most recent postponement ensures that there won't be sufficient time for the clean changeover and It is unlikely that Tau will prolong Ithuba’s licence yet again.
The whole process of appointing a fresh licence operator has also been tormented by allegations of conflict of fascination and other concerns.
GroundUp has uncovered the NLC has contingency strategies in position to continue funding great triggers for around a year When the lottery along with the sale of lottery tickets are suspended.
The contingency also addresses funding within the function of litigation by getting rid of bidders when a new operator is finally announced, which could also derail the smooth operating from the lottery.
In the event that ticket product sales are stopped, the NLC will use its reserves of R3.nine-billion to carry on funding qualifying organisations, a source with understanding of the contingency program explained to GroundUp.
In his weekend statement announcing the postponement, Tau claimed: “Sadly, I am not in a position for making a final final decision at this time. Any these kinds of conclusion presently would in all good conscience imply which i have not used my intellect with owing thought of every one of the pertinent factors.”
“I've discovered matters that have to have more evaluation. It could be inappropriate to reveal these concerns now as well as their disclosure could very effectively prejudice the right adjudication of your awarding from the licence.”
Tau mentioned he was awaiting assistance on The obvious way to ensure the continuation with the lottery during the interim and also the “growth of a programme to finalise this process”.
This, he reported, needs to be performed just after session While using the Nationwide Treasury.”
Tau also hinted in the political make-up from the consortiums bidding with the licence as A different attainable cause of the postponement.
He claimed: “I must also make sure the homeowners and managers of your profitable applicants are, as the Act states, ‘in good shape and appropriate persons’. Furthermore, I have to ensure that no political celebration or political Office environment-bearer has any immediate economical interest within the applicant or perhaps a shareholder in the applicant.”
Organization Day reported previously that almost all of the companies shortlisted with the tender are politically exposed.
The Gold Hurry consortium is led by significant-profile businessperson Sandile Zungu, who challenged for your ANC KwaZulu-Natal chair posture in 2022 ahead of dropping out following he did not garner plenty of assistance, the paper documented.
A further politically connected bidder is HCI, that is the vast majority-owned from the South African Apparel and Textile Employees’ Union, an affiliate of Cosatu, that's in alliance While using the ANC. CEO Johnny Copelyn donated to President Cyril Ramaphosa’s CR17 marketing campaign with the ANC presidency.
Yet another shortlisted bidder, In line with Small business Day, is Thebe Investment decision Corporation, which was Launched by ANC leaders in 1992. Thebe is half-owned by Batho Batho Rely on. The have faith in has donated R60-million on the ANC given that 2021, In keeping with declarations created into the electoral commission.
Ithuba, the holder with the licence, can also be during the operating, as is Umbulelo Consortium, led by Afrirent Holdings; and Giya Video games, In line with Small business Day.
Vivien Natasen consulted for Giya Video games on its bid. GroundUp documented in 2022 that Natasen, by way ofตรวจ หวย ลาว วัน นี้ his firm Neo Methods, contributed R2-million towards the luxury mansion of the then-NLC chair Aflred Nevhutanda — whilst his organization Neo Answers had a deal with the NLC. Natasen explained to GroundUp At the moment that Neo Answers was “appointed with the NLC’s source chain processes, as and when solutions are demanded”.