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 industry minister, has postponed naming a winning bidder to operate South Africa’s lottery in the event the tenure of recent operator, Ithuba, ends in May future yr.
Ithuba’s licence was thanks to own expired in May 2023 but was extended for 2 a long time by Tau’s predecessor Ebrahim Patel following a ask for through the then freshly-appointed board of the National Lotteries Commission (NLC).
The Board, which was addressing the corruption that experienced confused the NLC, also advised Patel of representations by Ithuba that it were seriously affected from the Covid pandemic. This incorporated a ban about the sale of lottery tickets at the height in the pandemic.
With regard to the extension, Ithuba had to generate contributions for the NLC for distribution to excellent leads to at a higher level than furnished for within their Original licence.
New licence operators are presented 6 months to put in place infrastructure, such as ticket devices countrywide, to take about in the past operator ahead of the incumbent’s licence ends. This most recent postponement ensures that there won't be sufficient time to get a easy transition and It truly is not likely that Tau will prolong Ithuba’s licence yet again.
The whole process of appointing a completely new licence operator has also been plagued by allegations of conflict of desire as well as other problems.
GroundUp has learned which the NLC has contingency strategies 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 during the function of litigation by getting rid of bidders whenever a new operator is eventually declared, which could also derail the smooth working with the lottery.
In the event that ticket revenue are stopped, the NLC will use its reserves of R3.9-billion to continue funding qualifying organisations, a source with knowledge of the contingency program advised GroundUp.
In his weekend statement announcing the postponement, Tau said: “Unfortunately, I'm not able to generate a ultimate selection at this stage. Any these types of final decision at the moment would in all good conscience necessarily mean that I haven't applied my head with due thought of all of the applicable elements.”
“I've determined matters that need further more analysis. It would be inappropriate to disclose these problems now as well as their disclosure could really effectively prejudice the appropriate adjudication of your awarding in the licence.”
Tau said he was awaiting guidance on The simplest way to ensure the continuation of the lottery during the interim and also the “advancement of a programme to finalise this method”.
This, he said, must be carried out right after consultation with the Countrywide Treasury.”
Tau also hinted for the political makeup of your consortiums bidding with the licence as One more achievable reason behind the postponement.
He explained: “I need to also be certain that the entrepreneurs and administrators with the productive applicants are, given that the Act states, ‘match and suitable persons’. Furthermore, I need to ensure that no political get together or political Business office-bearer has any immediate fiscal fascination inside the applicant or even a shareholder from the applicant.”
Company Working day documented Formerly that many of the companies shortlisted for that tender are politically exposed.
The Gold Rush consortium is led by superior-profile businessperson Sandile Zungu, who challenged for your ANC KwaZulu-Natal chair position in 2022 in advance of dropping out soon after he didn't garner adequate support, the paper documented.
An additional politically linked bidder is HCI, and that is bulk-owned by the South African Clothes and Textile Employees’ Union, an affiliate of Cosatu, which happens to be in alliance Using the ANC. CEO Johnny Copelyn donated to President Cyril Ramaphosa’s CR17 marketing campaign for that ANC presidency.
A further shortlisted bidder, In keeping with Small business Day, is Thebe Investment Company, which was Established by ANC leaders in 1992. Thebe is fifty percent-owned by Batho Batho Trust. The have faith in has donated R60-million towards the ANC due to the fact 2021, Based on declarations manufactured to your electoral Fee.
Ithuba, the holder of the licence, can also be inside the managing, as is Umbulelo Consortium, led by Afrirent Holdings; and Giya Online games, As outlined by Business enterprise Working day.
Vivien Natasen consulted for Giya Video games on its bid. GroundUp noted in 2022 that Natasen, viaตรวจ หวย รัฐบาล his corporation Neo Solutions, contributed R2-million in the direction of the posh mansion in the then-NLC chair Aflred Nevhutanda — even though his corporation Neo Alternatives experienced a agreement Together with the NLC. Natasen advised GroundUp at that time that Neo Methods was “appointed in the NLC’s offer chain processes, as and when solutions are demanded”.