Announcement of new lottery licence operator postponed - yet again
Announcement of new lottery licence operator postponed - yet again
Blog Article
Parks Tau, the trade and market minister, has postponed naming a winning bidder to run South Africa’s lottery in the event the tenure of latest operator, Ithuba, ends in May future yr.
Ithuba’s licence was thanks to get expired in May 2023 but was extended for two years by Tau’s predecessor Ebrahim Patel after a request by the then newly-appointed board with the Countrywide Lotteries Commission (NLC).
The Board, which was handling the corruption that experienced overcome the NLC, also encouraged Patel of representations by Ithuba that it were seriously influenced because of the Covid pandemic. This included a ban on the sale of lottery tickets at the peak of your pandemic.
With regards to the extension, Ithuba had to create contributions to the NLC for distribution to good results in at an increased charge than supplied for of their Preliminary licence.
New licence operators are offered 6 months to set up infrastructure, which include ticket machines countrywide, to acquire more than with the prior operator prior to the incumbent’s licence finishes. This hottest postponement means that there will not be adequate time for your sleek changeover and It is actually not likely that Tau will increase Ithuba’s licence again.
The process of appointing a brand new licence operator has also been suffering from allegations of conflict of interest along with other problems.
GroundUp has discovered which the NLC has contingency options in place to carry on funding very good leads to for up to a 12 months When the lottery and the sale of lottery tickets are suspended.
The contingency also addresses funding in the occasion of litigation by dropping bidders when a new operator is lastly introduced, which could also derail The sleek operating of the lottery.
Just in case ticket product sales are stopped, the NLC will use its reserves of R3.nine-billion to carry on funding qualifying organisations, a resource with expertise in the contingency plan instructed GroundUp.
In his weekend assertion asserting the postponement, Tau reported: “Unfortunately, I'm not able to make a final decision at this time. Any these final decision at the moment would in all excellent conscience suggest that I haven't utilized my thoughts with due thing to consider of many of the suitable variables.”
“I've recognized issues that need even further evaluation. It might be inappropriate to reveal these challenges now and their disclosure could extremely properly prejudice the right adjudication of your awarding of your licence.”
Tau said he was awaiting guidance on the best way to make sure the continuation with the lottery from the interim plus the “progress of a programme to finalise this method”.
This, he explained, should be finished immediately after consultation with the Nationwide Treasury.”
Tau also hinted at the political makeup with the consortiums bidding for your licence as A different possible basis for the postponement.
He reported: “I need to also make certain that the house owners and administrators of your effective applicants are, because the Act states, ‘suit and appropriate individuals’. Furthermore, I must make sure that no political celebration or political Workplace-bearer has any immediate money curiosity in the applicant or a shareholder with the applicant.”
Enterprise Working day noted Beforehand that many of the businesses shortlisted for your tender are politically exposed.
The Gold Hurry consortium is led by high-profile businessperson Sandile Zungu, who challenged to the ANC KwaZulu-Natal chair situation in 2022 before dropping out soon after he did not garner more than enough support, the paper noted.
Yet another politically linked bidder is HCI, that's the greater part-owned via the South African Garments and Textile Staff’ Union, an affiliate of Cosatu, that's in alliance Together with the ANC. CEO Johnny Copelyn donated to President Cyril Ramaphosa’s CR17 campaign with the ANC presidency.
A different shortlisted bidder, In line with Company Working day, is Thebe Investment decision Company, which was founded by ANC leaders in 1992. Thebe is 50 percent-owned by Batho Batho Trust. The rely on has donated R60-million to the ANC considering that 2021, In keeping with declarations produced for the electoral commission.
Ithuba, the holder on the licence, is likewise from the functioning, as is Umbulelo Consortium, led by Afrirent Holdings; and Giya Game titles, In keeping with Business enterprise Working day.
Vivien Natasen consulted for Giya Video games on its bid. GroundUp noted in 2022 that Natasen, throughเช ค หวย his corporation Neo Methods, contributed R2-million towards the luxurious mansion of your then-NLC chair Aflred Nevhutanda — though his company Neo Methods experienced a contract Using the NLC. Natasen explained to GroundUp At the moment that Neo Options was “appointed through the NLC’s offer chain processes, as and when expert services are necessary”.