Announcement of latest lottery licence operator postponed - yet again
Announcement of latest lottery licence operator postponed - yet again
Blog Article
Parks Tau, the trade and sector minister, has postponed naming a profitable bidder to operate South Africa’s lottery in the event the tenure of present operator, Ithuba, finishes in May next calendar year.
Ithuba’s licence was owing to acquire expired in May possibly 2023 but was extended for 2 a long time by Tau’s predecessor Ebrahim Patel following a request by the then recently-appointed board from the Nationwide Lotteries Fee (NLC).
The Board, which was handling the corruption that had overwhelmed the NLC, also recommended Patel of representations by Ithuba that it were severely impacted because of the Covid pandemic. This included a ban about the sale of lottery tickets at the height on the pandemic.
Concerning the extension, Ithuba experienced to help make contributions to the NLC for distribution to superior leads to at a higher level than furnished for within their initial licence.
New licence operators are specified 6 months to arrange infrastructure, together with ticket devices countrywide, to acquire above from your prior operator ahead of the incumbent’s licence ends. This newest postponement ensures that there will not be sufficient time for just a easy changeover and It can be not likely that Tau will lengthen Ithuba’s licence again.
The entire process of appointing a brand new licence operator has also been stricken by allegations of conflict of interest and also other challenges.
GroundUp has learned that the NLC has contingency plans set up to carry on funding good causes for up to a calendar year Should the lottery as well as sale of lottery tickets are suspended.
The contingency also addresses funding within the event of litigation by shedding bidders each time a new operator is at last introduced, which could also derail The graceful managing of the lottery.
Just in case ticket gross sales are stopped, the NLC will use its reserves of R3.9-billion to continue funding qualifying organisations, a resource with understanding of the contingency system instructed GroundUp.
In his weekend statement announcing the postponement, Tau mentioned: “Sad to say, I'm not able for making a final choice at this time. Any such decision presently would in all good conscience imply that I haven't utilized my thoughts with due consideration of each of the related factors.”
“I have discovered matters that require further more evaluation. It would be inappropriate to disclose these problems now as well as their disclosure could quite well prejudice the right adjudication from the awarding of the licence.”
Tau explained he was awaiting advice on The easiest way to ensure the continuation with the lottery in the interim along with the “improvement of a programme to finalise this process”.
This, he reported, should be carried out right after consultation Using the National Treasury.”
Tau also hinted at the political make-up from the consortiums bidding with the licence as One more achievable reason for the postponement.
He claimed: “I must also be sure that the owners and professionals with the successful applicants are, as being the Act states, ‘fit and suitable folks’. Additionally, I must be sure that no political party or political Business office-bearer has any direct financial desire during the applicant or simply a shareholder on the applicant.”
Organization Working day described previously that most of the companies shortlisted with the tender are politically exposed.
The Gold Hurry consortium is led by high-profile businessperson Sandile Zungu, who challenged to the ANC KwaZulu-Natal chair posture in 2022 just before dropping out immediately after he didn't garner sufficient assist, the paper claimed.
An additional politically connected bidder is HCI, which can be majority-owned through the South African Apparel and Textile Staff’ Union, an affiliate of Cosatu, which happens to be in alliance Along with the ANC. CEO Johnny Copelyn donated to President Cyril Ramaphosa’s CR17 marketing campaign for your ANC presidency.
Yet another shortlisted bidder, In accordance with Company Working day, is Thebe Financial commitment Corporation, which was Launched by ANC leaders in 1992. Thebe is half-owned by Batho Batho Belief. The have faith in has donated R60-million for the ANC since 2021, In line with declarations made for the electoral Fee.
Ithuba, the holder on the licence, is also while in the jogging, as is Umbulelo Consortium, led by Afrirent Holdings; and Giya Game titles, according to Business Working day.
Vivien Natasen consulted for Giya Game titles on its bid. GroundUp described in 2022 that Natasen, byหวย หุ้น his firm Neo Alternatives, contributed R2-million to the luxurious mansion of the then-NLC chair Aflred Nevhutanda — whilst his business Neo Options had a deal While using the NLC. Natasen instructed GroundUp At the moment that Neo Remedies was “appointed from the NLC’s offer chain processes, as and when solutions are necessary”.