Announcement of recent lottery licence operator postponed - again
Announcement of recent lottery licence operator postponed - again
Blog Article
Parks Tau, the trade and marketplace minister, has postponed naming a profitable bidder to operate South Africa’s lottery in the event the tenure of present operator, Ithuba, ends in Might up coming yr.
Ithuba’s licence was due to acquire expired in May well 2023 but was prolonged for 2 yrs 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 addressing the corruption that experienced confused the NLC, also advised Patel of representations by Ithuba that it had been severely affected through the Covid pandemic. This provided a ban to the sale of lottery tickets at the peak on the pandemic.
Concerning the extension, Ithuba experienced for making contributions to your NLC for distribution to fantastic triggers at a greater charge than supplied for in their First licence.
New licence operators are supplied six months to build infrastructure, like ticket machines countrywide, to acquire more than from the preceding operator before the incumbent’s licence ends. This hottest postponement signifies that there won't be sufficient time for your easy transition and It is actually unlikely that Tau will extend Ithuba’s licence once more.
The entire process of appointing a new licence operator has also been suffering from allegations of conflict of curiosity together with other issues.
GroundUp has learned that the NLC has contingency plans set up to continue funding excellent leads to for up to a calendar year In case the lottery along with the sale of lottery tickets are suspended.
The contingency also covers funding from the function of litigation by getting rid of bidders every time a new operator is lastly introduced, which could also derail The graceful running of your lottery.
In case ticket product sales are stopped, the NLC will use its reserves of R3.nine-billion to continue funding qualifying organisations, a supply with familiarity with the contingency system explained to GroundUp.
In his weekend assertion saying the postponement, Tau explained: “Sad to say, I am not in a position to make a final conclusion at this time. Any these kinds of choice presently would in all very good conscience suggest which i have not utilized my mind with owing consideration of the many related components.”
“I've identified matters that have to have additional evaluation. It could be inappropriate to reveal these challenges now as well as their disclosure could extremely effectively prejudice the correct adjudication on the awarding with the licence.”
Tau reported he was awaiting information on The obvious way to ensure the continuation from the lottery within the interim and also the “improvement of the programme to finalise this process”.
This, he said, needs to be accomplished right after session Together with the Countrywide Treasury.”
Tau also hinted with the political make-up from the consortiums bidding for that licence as An additional attainable reason for the postponement.
He mentioned: “I have to also make sure the proprietors and professionals on the thriving applicants are, given that the Act states, ‘fit and correct persons’. Additionally, I must ensure that no political party or political office-bearer has any immediate economic interest during the applicant or maybe a shareholder in the applicant.”
Company Working day reported Earlier that the majority of the businesses shortlisted for the tender are politically exposed.
The Gold Rush consortium is led by superior-profile businessperson Sandile Zungu, who challenged for your ANC KwaZulu-Natal chair placement in 2022 right before dropping out right after he did not garner plenty of aid, the paper reported.
Yet another politically connected bidder is HCI, which can be greater part-owned with the South African Apparel and Textile Employees’ Union, an affiliate of Cosatu, that is in alliance Using the ANC. CEO Johnny Copelyn donated to President Cyril Ramaphosa’s CR17 marketing campaign for that ANC presidency.
Yet another shortlisted bidder, Based on Business enterprise Day, is Thebe Investment Corporation, which was Established by ANC leaders in 1992. Thebe is half-owned by Batho Batho Rely on. The believe in has donated R60-million into the ANC given that 2021, As outlined by declarations made towards the electoral commission.
Ithuba, the holder in the licence, can be from the functioning, as is Umbulelo Consortium, led by Afrirent Holdings; and Giya Game titles, according to Business Working day.
Vivien Natasen consulted for Giya Video games on its bid. GroundUp noted in 2022 that Natasen, viaเช ค หวย his corporation Neo Methods, contributed R2-million towards the luxury mansion of the then-NLC chair Aflred Nevhutanda — whilst his business Neo Solutions experienced a agreement Together with the NLC. Natasen advised GroundUp at that time that Neo Methods was “appointed from the NLC’s provide chain procedures, as and when companies are needed”.