Announcement of latest lottery licence operator postponed - once more
Announcement of latest lottery licence operator postponed - once more
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 latest operator, Ithuba, ends in Might next 12 months.
Ithuba’s licence was due to acquire expired in Might 2023 but was prolonged for 2 many years by Tau’s predecessor Ebrahim Patel following a ask for through the then recently-appointed board of your National Lotteries Commission (NLC).
The Board, which was working with 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 incorporated a ban around the sale of lottery tickets at the peak from the pandemic.
When it comes to the extension, Ithuba experienced to make contributions for the NLC for distribution to fantastic results in at the next rate than supplied for in their initial licence.
New licence operators are provided six months to set up infrastructure, together with ticket devices countrywide, to get above from the past operator prior to the incumbent’s licence ends. This hottest postponement signifies that there won't be ample time for your smooth transition and It truly is not likely that Tau will prolong Ithuba’s licence yet again.
The whole process of appointing a new licence operator has also been suffering from allegations of conflict of interest and also other difficulties.
GroundUp has uncovered the NLC has contingency ideas set up to carry on funding excellent 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 handles funding inside the party of litigation by dropping bidders any time a new operator is ultimately declared, which could also derail The graceful working on the lottery.
In the event that ticket revenue are stopped, the NLC will use its reserves of R3.9-billion to continue funding qualifying organisations, a source with understanding of the contingency program advised GroundUp.
In his weekend statement announcing the postponement, Tau mentioned: “However, I am not in a position to make a remaining conclusion at this time. Any these kinds of selection at this time would in all superior conscience signify that I haven't applied my head with due thought of each of the applicable aspects.”
“I've identified matters that have to have additional evaluation. It could be inappropriate to reveal these issues 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 easiest method to ensure the continuation of the lottery within the interim and also the “development of the programme to finalise this process”.
This, he stated, must be performed soon after consultation While using the Nationwide Treasury.”
Tau also hinted within the political makeup with the consortiums bidding for your licence as A different feasible cause for the postponement.
He said: “I must also be sure that the owners and managers in the prosperous applicants are, given that the Act states, ‘fit and proper persons’. Additionally, I must ensure that no political party or political Workplace-bearer has any immediate money curiosity within the applicant or a shareholder with the applicant.”
Organization Day described previously that the majority of of the companies shortlisted for that tender are politically uncovered.
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 ample aid, the paper reported.
Yet another politically connected bidder is HCI, that's the greater part-owned via the South African Outfits and Textile Staff’ Union, an affiliate of Cosatu, and that is in alliance Along with the ANC. CEO Johnny Copelyn donated to President Cyril Ramaphosa’s CR17 campaign for the ANC presidency.
A further shortlisted bidder, In keeping with Organization Day, is Thebe Financial investment Corporation, which was Launched by ANC leaders in 1992. Thebe is half-owned by Batho Batho Have faith in. The believe in has donated R60-million to your ANC because 2021, As outlined by declarations made for the electoral commission.
Ithuba, the holder on the licence, is likewise during the running, as is Umbulelo Consortium, led by Afrirent Holdings; and Giya Games, Based on Company Working day.
Vivien Natasen consulted for Giya Game titles on its bid. GroundUp described in 2022 that Natasen, by way ofตรวจ รางวัล his firm Neo Methods, contributed R2-million towards the luxurious mansion from 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 Remedies was “appointed throughout the NLC’s supply chain processes, as and when solutions are required”.