Announcement of latest lottery licence operator postponed - once again
Announcement of latest 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 recent operator, Ithuba, ends in May future 12 months.
Ithuba’s licence was because of to possess expired in May 2023 but was prolonged for 2 decades by Tau’s predecessor Ebrahim Patel after a ask for with the then freshly-appointed board in the Countrywide Lotteries Commission (NLC).
The Board, which was dealing with the corruption that had overwhelmed the NLC, also recommended Patel of representations by Ithuba that it were seriously afflicted from the Covid pandemic. This provided a ban over the sale of lottery tickets at the peak of the pandemic.
Concerning the extension, Ithuba experienced to help make contributions to the NLC for distribution to great triggers at a better charge than offered for in their Original licence.
New licence operators are supplied six months to arrange infrastructure, which include ticket machines countrywide, to choose above from the preceding operator ahead of the incumbent’s licence ends. This hottest postponement means that there will not be enough time for a smooth transition and It is actually unlikely that Tau will lengthen Ithuba’s licence yet again.
The process of appointing a different licence operator has also been stricken by allegations of conflict of interest and also other challenges.
GroundUp has learned that the NLC has contingency ideas in place to carry on funding superior will cause for as many as a 12 months In the event the lottery and also the sale of lottery tickets are suspended.
The contingency also handles funding while in the occasion of litigation by shedding bidders when a new operator is eventually announced, which could also derail The sleek functioning in the lottery.
In the event that ticket revenue are stopped, the NLC will use its reserves of R3.9-billion to carry on funding qualifying organisations, a supply with familiarity with the contingency approach told GroundUp.
In his weekend statement announcing the postponement, Tau stated: “Regrettably, I am not in a position to make a final choice at this stage. Any such decision at this time would in all good conscience imply which i have not used my head with because of thing to consider of many of the suitable aspects.”
“I have determined matters that involve even more analysis. It might be inappropriate to reveal these issues now and their disclosure could incredibly well prejudice the correct adjudication on the awarding of your licence.”
Tau said he was awaiting tips on The easiest method to ensure the continuation in the lottery while in the interim plus the “progress of a programme to finalise this process”.
This, he reported, need to be accomplished soon after consultation with the Countrywide Treasury.”
Tau also hinted on the political make-up in the consortiums bidding for the licence as A further attainable reason for the postponement.
He explained: “I need to also make certain that the house owners and administrators from the prosperous applicants are, given that the Act states, ‘match and appropriate individuals’. Moreover, I have to be certain that no political social gathering or political Office environment-bearer has any immediate economic interest in the applicant or simply a shareholder on the applicant.”
Organization Day described Formerly that most of the companies shortlisted with the tender are politically exposed.
The Gold Rush consortium is led by high-profile businessperson Sandile Zungu, who challenged to the ANC KwaZulu-Natal chair posture in 2022 just before dropping out just after he failed to garner plenty of support, the paper documented.
A different politically related bidder is HCI, that is bulk-owned with 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 for the ANC presidency.
A different shortlisted bidder, As outlined by Organization Day, is Thebe Financial investment Corporation, which was Established by ANC leaders in 1992. Thebe is fifty percent-owned by Batho Batho Trust. The belief has donated R60-million for the ANC since 2021, In line with declarations built towards the electoral commission.
Ithuba, the holder in the licence, is likewise in the working, as is Umbulelo Consortium, led by Afrirent Holdings; and Giya Video games, In line with Small business Day.
Vivien Natasen consulted for Giya Video games on its bid. GroundUp reported in 2022 that Natasen, throughตรวจ รางวัล his corporation Neo Methods, contributed R2-million towards the luxury mansion from the then-NLC chair Aflred Nevhutanda — whilst his organization Neo Answers had a deal While using the NLC. Natasen instructed GroundUp at that time that Neo Solutions was “appointed in the NLC’s provide chain procedures, as and when expert services are necessary”.