Announcement of latest lottery licence operator postponed - yet again
Announcement of latest lottery licence operator postponed - yet again
Blog Article
Parks Tau, the trade and market minister, has postponed naming a profitable bidder to operate South Africa’s lottery when the tenure of present operator, Ithuba, finishes in May next calendar year.
Ithuba’s licence was because of to have expired in May well 2023 but was extended for two decades by Tau’s predecessor Ebrahim Patel after a request by the then recently-appointed board of your National Lotteries Commission (NLC).
The Board, which was working with the corruption that experienced overwhelmed the NLC, also suggested Patel of representations by Ithuba that it had been severely impacted via the Covid pandemic. This incorporated a ban over the sale of lottery tickets at the height in the pandemic.
Concerning the extension, Ithuba experienced to help make contributions into the NLC for distribution to very good triggers at an increased amount than delivered for inside their First licence.
New licence operators are presented six months to create infrastructure, such as ticket machines countrywide, to acquire over in the former operator prior to the incumbent’s licence finishes. This most up-to-date postponement implies that there won't be sufficient time to get a sleek transition and It really is not likely that Tau will extend Ithuba’s licence all over again.
The entire process of appointing a new licence operator has also been tormented by allegations of conflict of interest and various difficulties.
GroundUp has learned that the NLC has contingency programs in position to continue funding great will cause for nearly a yr Should the lottery as well as the sale of lottery tickets are suspended.
The contingency also addresses funding while in the celebration of litigation by shedding bidders every time a new operator is last but not least introduced, which could also derail The sleek jogging with the lottery.
Just in case ticket product sales are stopped, the NLC will use its reserves of R3.9-billion to carry on funding qualifying organisations, a source with knowledge of the contingency strategy informed GroundUp.
In his weekend assertion announcing the postponement, Tau reported: “Regretably, I am not in a position to help make a final final decision at this time. Any these types of decision presently would in all good conscience imply that I haven't utilized my head with owing thought of all the related aspects.”
“I have recognized matters that demand additional analysis. It might be inappropriate to reveal these challenges now as well as their disclosure could quite effectively prejudice the proper adjudication of the awarding with the licence.”
Tau stated he was awaiting advice on The obvious way to make sure the continuation in the lottery in the interim as well as the “growth of the programme to finalise this method”.
This, he reported, should be carried out right after consultation Using the Countrywide Treasury.”
Tau also hinted within the political makeup on the consortiums bidding to the licence as Yet another possible reason behind the postponement.
He claimed: “I must also make sure that the entrepreneurs and supervisors in the successful applicants are, given that the Act states, ‘suit and proper persons’. Also, I need to be certain that no political celebration or political Office environment-bearer has any immediate fiscal desire in the applicant or a shareholder from the applicant.”
Organization Day noted Formerly that almost all of the companies shortlisted for 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 in advance of dropping out soon after he didn't garner ample support, the paper described.
An additional politically linked bidder is HCI, which happens to be greater part-owned via the South African Clothes and Textile Employees’ Union, an affiliate of Cosatu, that's in alliance with the ANC. CEO Johnny Copelyn donated to President Cyril Ramaphosa’s CR17 marketing campaign for your ANC presidency.
Yet another shortlisted bidder, In line with Business enterprise Working day, is Thebe Investment Company, which was Launched by ANC leaders in 1992. Thebe is fifty percent-owned by Batho Batho Have confidence in. The believe in has donated R60-million for the ANC because 2021, In keeping with declarations manufactured towards the electoral commission.
Ithuba, the holder of your licence, is additionally in the managing, as is Umbulelo Consortium, led by Afrirent Holdings; and Giya Games, In line with Small business Working day.
Vivien Natasen consulted for Giya Game titles on its bid. GroundUp claimed in 2022 that Natasen, viaผล หวย his business Neo Remedies, contributed R2-million toward the luxurious mansion with the then-NLC chair Aflred Nevhutanda — though his company Neo Solutions experienced a agreement With all the NLC. Natasen informed GroundUp at that time that Neo Methods was “appointed from the NLC’s provide chain procedures, as and when expert services are necessary”.