Announcement of new lottery licence operator postponed - once again
Announcement of new 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 present-day operator, Ithuba, finishes in May possibly up coming calendar year.
Ithuba’s licence was because of to have expired in May well 2023 but was extended for two years by Tau’s predecessor Ebrahim Patel after a request from the then recently-appointed board of your National Lotteries Commission (NLC).
The Board, which was addressing the corruption that experienced overwhelmed the NLC, also advised Patel of representations by Ithuba that it had been seriously affected from the Covid pandemic. This provided a ban about the sale of lottery tickets at the height in the pandemic.
With regard to the extension, Ithuba experienced to generate contributions on the NLC for distribution to very good brings about at a greater price than provided for of their Preliminary licence.
New licence operators are given six months to set up infrastructure, together with ticket machines countrywide, to acquire more than with the prior operator prior to the incumbent’s licence finishes. This latest postponement implies that there will not be enough time for just a smooth transition and It really is unlikely that Tau will prolong Ithuba’s licence yet again.
The whole process of appointing a completely new licence operator has also been plagued by allegations of conflict of interest along with other concerns.
GroundUp has discovered that the NLC has contingency options in position to carry on funding fantastic brings about for around a calendar year If your lottery as well as the sale of lottery tickets are suspended.
The contingency also handles funding while in the event of litigation by dropping bidders any time a new operator is ultimately declared, which could also derail The graceful operating on 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 knowledge of the contingency strategy informed GroundUp.
In his weekend statement announcing the postponement, Tau said: “Sadly, I'm not ready for making a closing determination at this stage. Any this kind of decision right now would in all excellent conscience imply which i have not utilized my mind with owing consideration of the many related things.”
“I have recognized issues that require even more analysis. It will be inappropriate to reveal these problems now and their disclosure could quite perfectly prejudice the proper adjudication of the awarding from the licence.”
Tau mentioned he was awaiting tips on The simplest way to make sure the continuation of your lottery during the interim as well as “enhancement of a programme to finalise this method”.
This, he claimed, have to be completed after session Using 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 sure that the entrepreneurs and managers from the productive applicants are, as being the Act states, ‘healthy and right people’. Also, I have to be certain that no political social gathering or political Business office-bearer has any direct financial desire while in the applicant or even a shareholder of the applicant.”
Business enterprise Day claimed Formerly that most of the companies shortlisted with the tender are politically exposed.
The Gold Rush consortium is led by significant-profile businessperson Sandile Zungu, who challenged for the ANC KwaZulu-Natal chair placement in 2022 right before dropping out following he did not garner plenty of aid, the paper reported.
An additional politically connected bidder is HCI, which can be 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 Expenditure Company, which was Started by ANC leaders in 1992. Thebe is 50 percent-owned by Batho Batho Believe in. The rely on has donated R60-million towards the ANC due to the fact 2021, Based on declarations manufactured to your electoral Fee.
Ithuba, the holder of your licence, is also within the working, as is Umbulelo Consortium, led by Afrirent Holdings; and Giya Video games, In accordance with Organization Day.
Vivien Natasen consulted for Giya Games on its bid. GroundUp claimed in 2022 that Natasen, byluckyvip77 his business Neo Answers, contributed R2-million in direction of the posh mansion on the then-NLC chair Aflred Nevhutanda — even though his firm Neo Remedies had a deal While using the NLC. Natasen instructed GroundUp at that time that Neo Methods was “appointed from the NLC’s provide chain procedures, as and when companies are needed”.