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 market minister, has postponed naming a profitable bidder to run South Africa’s lottery in the event the tenure of present operator, Ithuba, ends in May well future year.
Ithuba’s licence was due to possess expired in Might 2023 but was extended for 2 decades by Tau’s predecessor Ebrahim Patel following a request through the then newly-appointed board of your Nationwide Lotteries Commission (NLC).
The Board, which was dealing with the corruption that experienced overwhelmed the NLC, also recommended Patel of representations by Ithuba that it had been seriously afflicted because of the Covid pandemic. This incorporated a ban over the sale of lottery tickets at the height on the pandemic.
With regards to the extension, Ithuba experienced to make contributions for the NLC for distribution to superior leads to at a better amount than provided for in their initial licence.
New licence operators are offered six months to setup infrastructure, such as ticket machines countrywide, to consider over from the previous operator ahead of the incumbent’s licence ends. This newest postponement means that there won't be sufficient time for just a easy changeover and It truly is not likely that Tau will lengthen Ithuba’s licence again.
The entire process of appointing a new licence operator has also been tormented by allegations of conflict of interest together with other problems.
GroundUp has uncovered which the NLC has contingency plans in place to continue funding excellent brings about for as many as a calendar year Should the lottery and also the sale of lottery tickets are suspended.
The contingency also covers funding within the event of litigation by getting rid of bidders any time a new operator is eventually introduced, which could also derail the smooth functioning with the lottery.
In the event ticket sales are stopped, the NLC will use its reserves of R3.nine-billion to carry on funding qualifying organisations, a supply with expertise in the contingency prepare told GroundUp.
In his weekend statement saying the postponement, Tau said: “However, I'm not in a position to produce a remaining choice at this stage. Any these kinds of conclusion at this time would in all great conscience suggest that I have not used my mind with thanks thing to consider of many of the applicable things.”
“I've recognized issues that involve even further evaluation. It would be inappropriate to reveal these problems now as well as their disclosure could really nicely prejudice the appropriate adjudication in the awarding of your licence.”
Tau explained he was awaiting advice on the best way to ensure the continuation of your lottery within the interim plus the “enhancement of the programme to finalise this process”.
This, he mentioned, need to be done right after consultation Along with the Countrywide Treasury.”
Tau also hinted within the political make-up of your consortiums bidding with the licence as another possible reason for the postponement.
He reported: “I have to also be sure that the homeowners and professionals of the successful applicants are, as being the Act states, ‘match and appropriate individuals’. Additionally, I need to make sure no political social gathering or political Business office-bearer has any immediate economical curiosity during the applicant or simply a shareholder of your applicant.”
Business enterprise Working day claimed Beforehand that the majority of the companies shortlisted for the tender are politically exposed.
The Gold Hurry consortium is led by significant-profile businessperson Sandile Zungu, who challenged for that ANC KwaZulu-Natal chair placement in 2022 just before dropping out right after he failed to garner more than enough guidance, the paper documented.
Another politically linked bidder is HCI, which is the vast majority-owned because of the South African Clothing and Textile Employees’ Union, an affiliate of Cosatu, and that is in alliance With all the ANC. CEO Johnny Copelyn donated to President Cyril Ramaphosa’s CR17 campaign with the ANC presidency.
An additional shortlisted bidder, As outlined by Business Working day, is Thebe Investment decision Corporation, which was Launched by ANC leaders in 1992. Thebe is 50 %-owned by Batho Batho Trust. The trust has donated R60-million to the ANC since 2021, Based on declarations made to the electoral Fee.
Ithuba, the holder in the licence, can also be inside the operating, as is Umbulelo Consortium, led by Afrirent Holdings; and Giya Game titles, As outlined by Company Working day.
Vivien Natasen consulted for Giya Game titles on its bid. GroundUp noted in 2022 that Natasen, byหวย his firm Neo Answers, contributed R2-million in the direction of the luxurious mansion from the then-NLC chair Aflred Nevhutanda — when his organization Neo Methods had a contract Along with the NLC. Natasen informed GroundUp at that time that Neo Alternatives was “appointed in the NLC’s source chain procedures, as and when solutions are necessary”.
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