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 industry minister, has postponed naming a profitable bidder to operate South Africa’s lottery when the tenure of existing operator, Ithuba, ends in Might future yr.
Ithuba’s licence was thanks to get expired in May 2023 but was extended for 2 years by Tau’s predecessor Ebrahim Patel after a request by the then newly-appointed board with the Countrywide Lotteries Fee (NLC).
The Board, which was managing the corruption that had overcome the NLC, also recommended Patel of representations by Ithuba that it were seriously influenced because of the Covid pandemic. This bundled a ban on the sale of lottery tickets at the peak of your pandemic.
In terms of the extension, Ithuba experienced to help make contributions to your NLC for distribution to very good brings about at a greater rate than delivered for inside their initial licence.
New licence operators are supplied six months to build infrastructure, which includes ticket equipment countrywide, to get around from your past operator before the incumbent’s licence ends. This most current postponement ensures that there won't be ample time to get a easy transition and It really is unlikely that Tau will lengthen Ithuba’s licence once again.
The entire process of appointing a different licence operator has also been tormented by allegations of conflict of fascination and various challenges.
GroundUp has figured out the NLC has contingency ideas set up to continue funding great results in for approximately a year Should the lottery plus the sale of lottery tickets are suspended.
The contingency also covers funding while in the event of litigation by dropping bidders every time a new operator is lastly introduced, which could also derail The sleek jogging of the lottery.
In case ticket product sales are stopped, the NLC will use its reserves of R3.9-billion to continue funding qualifying organisations, a source with understanding of the contingency program informed GroundUp.
In his weekend statement announcing the postponement, Tau said: “Unfortunately, I'm not able to produce a last choice at this time. Any these kinds of selection at the moment would in all great conscience mean which i haven't applied my head with owing thought of each of the relevant components.”
“I've identified matters that have to have additional evaluation. It could be inappropriate to reveal these problems now and their disclosure could quite very well prejudice the appropriate adjudication of the awarding from the licence.”
Tau mentioned he was awaiting tips on The simplest way to make sure the continuation of your lottery within the interim as well as the “growth of the programme to finalise this process”.
This, he explained, have to be finished just after session While using the Nationwide Treasury.”
Tau also hinted with the political makeup with the consortiums bidding for your licence as another doable cause of the postponement.
He reported: “I must also ensure that the house owners and managers with the productive applicants are, as being the Act states, ‘fit and correct persons’. Additionally, I must make sure no political party or political Place of work-bearer has any direct economic curiosity while in the applicant or even a shareholder from the applicant.”
Business Day reported Earlier that almost all of the businesses shortlisted for your tender are politically exposed.
The Gold Hurry consortium is led by large-profile businessperson Sandile Zungu, who challenged with the ANC KwaZulu-Natal chair place in 2022 ahead of dropping out after he failed to garner adequate assist, the paper described.
A further politically related bidder is HCI, which is vast majority-owned from the South African Clothes and Textile Workers’ Union, an affiliate of Cosatu, which can be in alliance With all the ANC. CEO Johnny Copelyn donated to President Cyril Ramaphosa’s CR17 campaign for the ANC presidency.
An additional shortlisted bidder, In accordance with Enterprise Day, is Thebe Expense Company, which was Started by ANC leaders in 1992. Thebe is fifty percent-owned by Batho Batho Trust. The have faith in has donated R60-million to the ANC due to the fact 2021, according to declarations manufactured to the electoral commission.
Ithuba, the holder on the licence, is usually inside the jogging, as is Umbulelo Consortium, led by Afrirent Holdings; and Giya Games, As outlined by Company Day.
Vivien Natasen consulted for Giya Game titles on its bid. GroundUp reported in 2022 that Natasen, viaหวย รัฐบาล his company Neo Answers, contributed R2-million in direction of the luxurious mansion with the then-NLC chair Aflred Nevhutanda — though his enterprise Neo Methods experienced a agreement With all the NLC. Natasen advised GroundUp at that time that Neo Solutions was “appointed in the NLC’s offer chain processes, as and when services are demanded”.