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 marketplace minister, has postponed naming a profitable bidder to operate South Africa’s lottery if the tenure of latest operator, Ithuba, ends in Might next 12 months.
Ithuba’s licence was because of to obtain expired in May possibly 2023 but was extended for two decades 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 had overwhelmed the NLC, also suggested Patel of representations by Ithuba that it had been severely impacted because of the Covid pandemic. This bundled a ban on the sale of lottery tickets at the peak of the pandemic.
With regards to the extension, Ithuba had to produce contributions towards the NLC for distribution to great causes at the next amount than presented for in their Original licence.
New licence operators are presented 6 months to build infrastructure, which includes ticket equipment countrywide, to get over through the previous 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 lengthen 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 realized that the NLC has contingency plans set up to continue funding good causes for as many as a yr When the lottery as well as sale of lottery tickets are suspended.
The contingency also addresses funding in the function of litigation by getting rid of bidders each time a new operator is finally announced, which could also derail The sleek functioning in the lottery.
Just in case 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 program advised GroundUp.
In his weekend statement announcing the postponement, Tau stated: “Regrettably, I am not in a position to make a remaining decision at this time. Any these kinds of selection at this time would in all superior conscience signify that I have not used my brain with due thought of all of the suitable aspects.”
“I've identified matters that call for further evaluation. It could be inappropriate to reveal these issues now and their disclosure could really properly 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 also the “development of the programme to finalise this process”.
This, he said, needs to be performed soon after consultation Along with the National Treasury.”
Tau also hinted within the political makeup on the consortiums bidding for the licence as One more possible basis for the postponement.
He reported: “I need to also make certain that the house owners and administrators of the productive applicants are, since the Act states, ‘healthy and right folks’. On top of that, I have to be sure that no political occasion or political Office environment-bearer has any direct monetary interest from the applicant or perhaps a shareholder with the applicant.”
Small business Working day described Formerly that a lot of of the companies shortlisted for the tender are politically uncovered.
The Gold Rush consortium is led by superior-profile businessperson Sandile Zungu, who challenged for that ANC KwaZulu-Natal chair placement in 2022 prior to dropping out after he didn't garner adequate aid, the paper documented.
A further politically connected bidder is HCI, which can be majority-owned through the South African Apparel and Textile Staff’ Union, an affiliate of Cosatu, which is in alliance While using the ANC. CEO Johnny Copelyn donated to President Cyril Ramaphosa’s CR17 marketing campaign with the ANC presidency.
Another shortlisted bidder, according to Business Working day, is Thebe Investment Company, which was founded by ANC leaders in 1992. Thebe is 50 percent-owned by Batho Batho Believe in. The trust has donated R60-million to your ANC considering that 2021, Based on declarations designed towards the electoral commission.
Ithuba, the holder with the licence, is also from the running, as is Umbulelo Consortium, led by Afrirent Holdings; and Giya Video games, As outlined by Company Day.
Vivien Natasen consulted for Giya Video games on its bid. GroundUp described in 2022 that Natasen, as a result ofhihuay his organization Neo Options, contributed R2-million toward the luxurious mansion of your then-NLC chair Aflred Nevhutanda — while his business Neo Options experienced a deal While using the NLC. Natasen explained to GroundUp At the moment that Neo Answers was “appointed through the NLC’s source chain processes, as and when solutions are demanded”.