Announcement of new lottery licence operator postponed - again
Announcement of new lottery licence operator postponed - again
Blog Article
Parks Tau, the trade and industry minister, has postponed naming a winning bidder to operate South Africa’s lottery in the event the tenure of present operator, Ithuba, finishes in May possibly future year.
Ithuba’s licence was thanks to obtain expired in Could 2023 but was prolonged for two many years by Tau’s predecessor Ebrahim Patel following a ask for by the then recently-appointed board of the Nationwide Lotteries Fee (NLC).
The Board, which was handling the corruption that experienced confused the NLC, also advised Patel of representations by Ithuba that it had been seriously affected from the Covid pandemic. This provided a ban to the sale of lottery tickets at the peak with the pandemic.
With regards to the extension, Ithuba had for making contributions to the NLC for distribution to good causes at a higher level than furnished for within their Original licence.
New licence operators are presented six months to build infrastructure, which includes ticket machines countrywide, to acquire above within the preceding operator before the incumbent’s licence ends. This most up-to-date postponement means that there will not be adequate time for the sleek changeover and It is unlikely that Tau will extend Ithuba’s licence again.
The process of appointing a fresh licence operator has also been affected by allegations of conflict of curiosity and also other troubles.
GroundUp has realized that the NLC has contingency designs in position to continue funding fantastic brings about for as much as a calendar year In case the lottery and also the sale of lottery tickets are suspended.
The contingency also handles funding within the celebration of litigation by losing bidders each time a new operator is at last announced, which could also derail the smooth managing of your lottery.
In case ticket product sales are stopped, the NLC will use its reserves of R3.9-billion to continue funding qualifying organisations, a source with understanding of the contingency prepare instructed GroundUp.
In his weekend statement announcing the postponement, Tau mentioned: “Regrettably, I am not ready to help make a closing determination at this stage. Any such conclusion right now would in all great conscience necessarily mean that I haven't applied my head with due thought of all of the suitable elements.”
“I have discovered matters that demand even further analysis. It would be inappropriate to disclose these concerns now and their disclosure could incredibly perfectly prejudice the proper adjudication from the awarding from the licence.”
Tau mentioned he was awaiting suggestions on The ultimate way to make sure the continuation on the lottery while in the interim along with the “advancement of a programme to finalise this method”.
This, he mentioned, must be finished soon after session Along with the National Treasury.”
Tau also hinted with the political make-up in the consortiums bidding with the licence as An additional doable reason for the postponement.
He mentioned: “I have to also ensure that the proprietors and professionals on the prosperous applicants are, given that the Act states, ‘in good shape and proper folks’. On top of that, I need to be sure that no political occasion or political Office environment-bearer has any direct financial desire while in the applicant or even a shareholder of the applicant.”
Small business Day described previously that the majority of of the companies shortlisted for that tender are politically uncovered.
The Gold Rush consortium is led by large-profile businessperson Sandile Zungu, who challenged with the ANC KwaZulu-Natal chair position in 2022 ahead of dropping out just after he didn't garner sufficient help, the paper described.
A different politically related bidder is HCI, and that is the vast majority-owned by 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 with the ANC presidency.
A different shortlisted bidder, In line with Company Working day, is Thebe Investment decision Company, which was founded by ANC leaders in 1992. Thebe is 50 percent-owned by Batho Batho Trust. The have faith in 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, can also be within the working, as is Umbulelo Consortium, led by Afrirent Holdings; and Giya Video games, In line with Organization Day.
Vivien Natasen consulted for Giya Games on its bid. GroundUp claimed in 2022 that Natasen, byผล สลาก his business Neo Remedies, contributed R2-million toward the posh mansion on the then-NLC chair Aflred Nevhutanda — when his firm Neo Remedies had a deal While using the NLC. Natasen instructed GroundUp at that time that Neo Solutions was “appointed from the NLC’s provide chain procedures, as and when companies are needed”.