Announcement of new lottery licence operator postponed - once more
Announcement of new lottery licence operator postponed - once more
Blog Article
Parks Tau, the trade and field minister, has postponed naming a winning bidder to run South Africa’s lottery once the tenure of recent operator, Ithuba, ends in May possibly following yr.
Ithuba’s licence was due to obtain expired in May well 2023 but was extended for 2 decades by Tau’s predecessor Ebrahim Patel after a ask for via the then recently-appointed board of the Nationwide Lotteries Fee (NLC).
The Board, which was handling the corruption that experienced overwhelmed the NLC, also suggested Patel of representations by Ithuba that it were seriously afflicted by the Covid pandemic. This provided a ban over the sale of lottery tickets at the peak with the pandemic.
When it comes to the extension, Ithuba had to create contributions towards the NLC for distribution to great leads to at a higher level than furnished for inside their Preliminary licence.
New licence operators are offered 6 months to build infrastructure, together with ticket devices countrywide, to consider around with the earlier operator ahead of the incumbent’s licence finishes. This most current postponement means that there will not be adequate time for your sleek transition and It truly is not likely that Tau will increase Ithuba’s licence again.
The whole process of appointing a new licence operator has also been affected by allegations of conflict of curiosity and various challenges.
GroundUp has acquired the NLC has contingency strategies in place to carry on funding fantastic brings about for around a year If your lottery along with the sale of lottery tickets are suspended.
The contingency also covers funding while in the event of litigation by shedding bidders whenever a new operator is eventually 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 supply with understanding of the contingency prepare instructed GroundUp.
In his weekend statement saying the postponement, Tau explained: “However, I am not in a position to create a final choice at this time. Any these determination at the moment would in all good conscience signify that I haven't applied my head with due thought of all of the applicable variables.”
“I've identified matters that have to have further evaluation. It could be inappropriate to reveal these challenges now as well as their disclosure could extremely properly prejudice the right adjudication of your awarding of your licence.”
Tau said he was awaiting guidance on The ultimate way to make sure the continuation on the lottery while in the interim as well as the “advancement of a programme to finalise this method”.
This, he mentioned, must be finished immediately after consultation While using the Nationwide Treasury.”
Tau also hinted at the political makeup with the consortiums bidding for your licence as A different feasible cause for the postponement.
He stated: “I have to also make sure the owners and professionals in the prosperous applicants are, given that the Act states, ‘fit and correct persons’. Additionally, I must make sure that no political party or political Workplace-bearer has any immediate money curiosity within the applicant or a shareholder with the applicant.”
Organization Day documented previously that the majority of of the companies shortlisted for that tender are politically uncovered.
The Gold Rush consortium is led by superior-profile businessperson Sandile Zungu, who challenged for your ANC KwaZulu-Natal chair situation in 2022 prior to dropping out immediately after he didn't garner sufficient assist, the paper described.
Another politically connected bidder is HCI, that is greater part-owned because of the South African Garments and Textile Staff’ Union, an affiliate of Cosatu, that's in alliance Along with the ANC. CEO Johnny Copelyn donated to President Cyril Ramaphosa’s CR17 campaign for the ANC presidency.
Another shortlisted bidder, according to Business enterprise Day, is Thebe Expense Company, which was Established by ANC leaders in 1992. Thebe is fifty percent-owned by Batho Batho Belief. The have faith in has donated R60-million to the ANC due to the fact 2021, according to declarations created to your electoral Fee.
Ithuba, the holder of your licence, can also be inside the managing, as is Umbulelo Consortium, led by Afrirent Holdings; and Giya Video games, In line with Small business Day.
Vivien Natasen consulted for Giya Games on its bid. GroundUp reported in 2022 that Natasen, as a result ofตรวจ หวย his enterprise Neo Solutions, contributed R2-million towards the luxury mansion of the then-NLC chair Aflred Nevhutanda — while his company Neo Solutions experienced a contract Using 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”.