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 field minister, has postponed naming a winning bidder to run South Africa’s lottery if the tenure of latest operator, Ithuba, finishes in May following 12 months.
Ithuba’s licence was owing to own expired in Could 2023 but was prolonged for two yrs by Tau’s predecessor Ebrahim Patel after a ask for by the then recently-appointed board from the Countrywide Lotteries Commission (NLC).
The Board, which was handling the corruption that experienced overwhelmed the NLC, also recommended Patel of representations by Ithuba that it were severely impacted by the Covid pandemic. This involved a ban about the sale of lottery tickets at the peak from the pandemic.
Concerning the extension, Ithuba experienced to make contributions on the NLC for distribution to fantastic will cause at the next level than provided for within their initial licence.
New licence operators are offered 6 months to build infrastructure, like ticket machines countrywide, to take around through the previous operator prior to the incumbent’s licence finishes. This newest postponement signifies that there will not be adequate time for a easy changeover and It's unlikely that Tau will increase Ithuba’s licence once more.
The entire process of appointing a fresh licence operator has also been tormented by allegations of conflict of interest and also other challenges.
GroundUp has acquired that the NLC has contingency programs in place to continue funding good leads to for as much as a yr If your lottery as well as sale of lottery tickets are suspended.
The contingency also addresses funding while in the occasion of litigation by getting rid of bidders any time a new operator is eventually declared, which could also derail The sleek functioning in the lottery.
In the event that ticket product sales are stopped, the NLC will use its reserves of R3.nine-billion to continue funding qualifying organisations, a supply with expertise in the contingency program instructed GroundUp.
In his weekend assertion asserting the postponement, Tau stated: “However, I'm not able for making a final choice at this stage. Any this kind of selection at the moment would in all very good conscience indicate that I haven't used my brain with because of thing to consider of many of the applicable things.”
“I have identified issues that call for more analysis. It might be inappropriate to reveal these problems now as well as their disclosure could extremely properly prejudice the appropriate adjudication from the awarding in the licence.”
Tau claimed he was awaiting advice on The simplest way to ensure the continuation on the lottery during the interim and the “advancement of a programme to finalise this method”.
This, he claimed, need to be performed following session Using the Countrywide Treasury.”
Tau also hinted for the political makeup of the consortiums bidding for that licence as Yet another possible reason behind the postponement.
He claimed: “I must also ensure that the homeowners and administrators of the prosperous applicants are, as the Act states, ‘in good shape and proper individuals’. Moreover, I have to make sure no political party or political Place of work-bearer has any direct economic interest in the applicant or a shareholder of your applicant.”
Business enterprise Day noted Beforehand that many of the companies shortlisted to the tender are politically exposed.
The Gold Rush consortium is led by high-profile businessperson Sandile Zungu, who challenged for that ANC KwaZulu-Natal chair position in 2022 in advance of dropping out following he did not garner sufficient guidance, the paper claimed.
Yet another politically linked bidder is HCI, which is bulk-owned because of the South African Garments and Textile Personnel’ Union, an affiliate of Cosatu, which is in alliance Using the ANC. CEO Johnny Copelyn donated to President Cyril Ramaphosa’s CR17 campaign for the ANC presidency.
Another shortlisted bidder, according to Business Working day, is Thebe Expenditure Corporation, which was Launched by ANC leaders in 1992. Thebe is half-owned by Batho Batho Trust. The belief has donated R60-million on the ANC because 2021, according to declarations created to your electoral Fee.
Ithuba, the holder of the licence, can be from the functioning, as is Umbulelo Consortium, led by Afrirent Holdings; and Giya Game titles, according to Company Working day.
Vivien Natasen consulted for Giya Game titles on its bid. GroundUp described in 2022 that Natasen, byltpbet his firm Neo Alternatives, contributed R2-million to the luxurious mansion of your then-NLC chair Aflred Nevhutanda — though his enterprise Neo Methods had a contract with the NLC. Natasen explained to GroundUp At the moment that Neo Options was “appointed through the NLC’s offer chain processes, as and when products and services are essential”.