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 sector minister, has postponed naming a successful bidder to run South Africa’s lottery once the tenure of existing operator, Ithuba, finishes in May well following year.
Ithuba’s licence was owing to get expired in May 2023 but was extended for 2 many years by Tau’s predecessor Ebrahim Patel after a ask for through 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 seriously afflicted by the Covid pandemic. This integrated a ban within the sale of lottery tickets at the height from the pandemic.
Regarding 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 provided 6 months to create infrastructure, including ticket devices countrywide, to take in excess of from the earlier operator ahead of the incumbent’s licence finishes. This newest postponement signifies that there won't be enough time for just a smooth transition and It's unlikely that Tau will lengthen Ithuba’s licence once more.
The entire process of appointing a whole new licence operator has also been tormented by allegations of conflict of fascination and various challenges.
GroundUp has figured out the NLC has contingency programs set up to carry on funding great causes for as many as a yr Should the lottery plus the sale of lottery tickets are suspended.
The contingency also covers funding from the occasion of litigation by shedding bidders when a new operator is last but not least 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 carry on funding qualifying organisations, a resource with expertise in the contingency plan told GroundUp.
In his weekend assertion asserting the postponement, Tau claimed: “Regretably, I'm not in a position to produce a last choice at this time. Any these determination at this time would in all superior conscience indicate which i have not used my thoughts with thanks consideration of many of the pertinent things.”
“I have recognized issues that involve more analysis. It will be inappropriate to reveal these issues now and their disclosure could really very well prejudice the right adjudication of your awarding of your licence.”
Tau said he was awaiting advice on The easiest way to ensure the continuation in the lottery within the interim and also the “development of the programme to finalise this process”.
This, he reported, need to be completed following session Using the Countrywide Treasury.”
Tau also hinted in the political make-up of the consortiums bidding for your licence as A further feasible cause for the postponement.
He reported: “I must also make certain that the house owners and administrators of your effective applicants are, because the Act states, ‘suit and suitable individuals’. Furthermore, I must make sure that no political celebration or political Workplace-bearer has any immediate fiscal interest during the applicant or maybe a shareholder in the applicant.”
Business Day claimed Formerly that most of the companies shortlisted for that tender are politically uncovered.
The Gold Rush consortium is led by substantial-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 documented.
A different politically linked bidder is HCI, and that is the vast majority-owned via the South African Outfits and Textile Staff’ Union, an affiliate of Cosatu, that's in alliance With all the ANC. CEO Johnny Copelyn donated to President Cyril Ramaphosa’s CR17 campaign for that ANC presidency.
One more shortlisted bidder, In accordance with Business Day, is Thebe Expense 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 to your ANC since 2021, In line with declarations designed to the electoral Fee.
Ithuba, the holder of the licence, can also be inside the working, as is Umbulelo Consortium, led by Afrirent Holdings; and Giya Video games, In accordance with Enterprise Day.
Vivien Natasen consulted for Giya Game titles on its bid. GroundUp documented in 2022 that Natasen, by means ofหวย ออก his company Neo Options, contributed R2-million in the direction of the luxury mansion from the then-NLC chair Aflred Nevhutanda — whilst his business Neo Solutions experienced a agreement With all the NLC. Natasen told GroundUp At the moment that Neo Answers was “appointed through the NLC’s offer chain processes, as and when products and services are essential”.