Announcement of recent lottery licence operator postponed - again
Announcement of recent lottery licence operator postponed - again
Blog Article
Parks Tau, the trade and sector minister, has postponed naming a successful bidder to run South Africa’s lottery once the tenure of recent operator, Ithuba, ends in May upcoming yr.
Ithuba’s licence was due to acquire expired in Could 2023 but was prolonged for two yrs by Tau’s predecessor Ebrahim Patel after a request via the then newly-appointed board on the Countrywide Lotteries Fee (NLC).
The Board, which was managing the corruption that experienced confused the NLC, also encouraged Patel of representations by Ithuba that it were severely impacted because of 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 create contributions towards the NLC for distribution to good causes at the next amount than presented for within their Original licence.
New licence operators are presented six months to build infrastructure, which includes ticket equipment countrywide, to get around from your former operator before the incumbent’s licence ends. This most up-to-date postponement means that there will not be adequate time for your sleek changeover and It's unlikely that Tau will extend Ithuba’s licence once more.
The entire process of appointing a different licence operator has also been tormented by allegations of conflict of fascination and other issues.
GroundUp has learned which the NLC has contingency strategies in place to carry on funding very good leads to for up to a 12 months In the event the lottery and also the sale of lottery tickets are suspended.
The contingency also addresses funding within the celebration of litigation by getting rid of bidders each time a new operator is at last announced, which could also derail the smooth jogging of the lottery.
In case ticket product sales are stopped, the NLC will use its reserves of R3.9-billion to continue funding qualifying organisations, a supply with understanding of the contingency prepare instructed GroundUp.
In his weekend assertion saying the postponement, Tau mentioned: “Regrettably, I am not ready to help make a remaining final decision at this stage. Any this kind of decision presently would in all very good conscience imply which i have not utilized my thoughts with thanks consideration of many of the suitable elements.”
“I have discovered matters that call for further evaluation. It could be inappropriate to reveal these challenges now and their disclosure could really very well prejudice the appropriate adjudication of the awarding from the licence.”
Tau mentioned he was awaiting tips on The simplest way to ensure the continuation of the lottery in the interim and the “development of the programme to finalise this process”.
This, he said, must be performed soon after consultation While using the Nationwide Treasury.”
Tau also hinted within the political makeup of your consortiums bidding to the licence as A further achievable reason behind the postponement.
He stated: “I have to also make sure the proprietors and professionals with the successful applicants are, because the Act states, ‘suit and suitable people’. Moreover, I have to be certain that no political social gathering or political Business office-bearer has any direct financial desire from the applicant or possibly a shareholder from the applicant.”
Business Working day reported Earlier that many 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 position in 2022 ahead of dropping out just after he failed to garner adequate assist, the paper described.
Another politically related bidder is HCI, which is bulk-owned through 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 further shortlisted bidder, In keeping with Business enterprise Day, is Thebe Expense Company, which was Started by ANC leaders in 1992. Thebe is 50 %-owned by Batho Batho Have faith in. The have faith in has donated R60-million to the ANC due to the fact 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, In keeping with Business Working day.
Vivien Natasen consulted for Giya Online games on its bid. GroundUp documented in 2022 that Natasen, by means ofหุ้น ชอง 9 his firm Neo Alternatives, contributed R2-million to the luxurious mansion of your then-NLC chair Aflred Nevhutanda — while his company Neo Solutions experienced a agreement Together with the NLC. Natasen advised GroundUp at that time that Neo Methods was “appointed from the NLC’s provide chain procedures, as and when companies are needed”.