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 business minister, has postponed naming a winning bidder to run South Africa’s lottery once the tenure of recent operator, Ithuba, ends in Could subsequent calendar year.
Ithuba’s licence was because of to have expired in May well 2023 but was extended for two decades by Tau’s predecessor Ebrahim Patel after a request by the then newly-appointed board on 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.
When it comes to the extension, Ithuba experienced to make contributions into the NLC for distribution to superior will cause at a better charge than supplied for of their Preliminary licence.
New licence operators are given 6 months to setup infrastructure, together with ticket machines countrywide, to acquire above with the prior operator prior to the incumbent’s licence finishes. This latest postponement implies that there won't be enough time for just a smooth transition and It's unlikely that Tau will extend Ithuba’s licence once more.
The entire process of appointing a whole new licence operator has also been affected by allegations of conflict of fascination together with other difficulties.
GroundUp has uncovered that the NLC has contingency plans in position to continue funding superior will cause for around a calendar year In case the lottery as well as the sale of lottery tickets are suspended.
The contingency also handles funding inside the party of litigation by losing bidders every time a new operator is finally introduced, which could also derail The sleek jogging of the lottery.
In the event ticket income are stopped, the NLC will use its reserves of R3.nine-billion to carry on funding qualifying organisations, a supply with familiarity with the contingency system explained to GroundUp.
In his weekend assertion saying the postponement, Tau explained: “However, I am not in a position to help make a remaining final decision at this stage. Any this kind of decision right now would in all excellent conscience mean which i haven't applied my intellect with because of thing to consider of each of the applicable aspects.”
“I've identified matters that call for further evaluation. It might be inappropriate to disclose these difficulties now as well as their disclosure could very nicely prejudice the correct adjudication in the awarding on the licence.”
Tau claimed he was awaiting assistance on The easiest method to ensure the continuation of the lottery in the interim and the “enhancement of a programme to finalise this method”.
This, he claimed, have to be carried out after session With all the National Treasury.”
Tau also hinted for the political makeup of your consortiums bidding for your licence as another achievable reason behind the postponement.
He stated: “I must also be sure that the entrepreneurs and managers from the productive applicants are, since the Act states, ‘healthy and right people’. Also, I have to be certain that no political social gathering or political Business office-bearer has any direct economical fascination within the applicant or a shareholder with the applicant.”
Organization Working day documented Beforehand that many of the businesses shortlisted for your tender are politically uncovered.
The Gold Hurry consortium is led by high-profile businessperson Sandile Zungu, who challenged to the ANC KwaZulu-Natal chair posture in 2022 prior to dropping out soon after he did not garner more than enough support, the paper reported.
Yet another politically connected bidder is HCI, which can be greater part-owned with the South African Apparel and Textile Employees’ Union, an affiliate of Cosatu, that is in alliance Using the ANC. CEO Johnny Copelyn donated to President Cyril Ramaphosa’s CR17 marketing campaign to the ANC presidency.
Yet another shortlisted bidder, Based on Business enterprise Day, is Thebe Investment Corporation, which was Established by ANC leaders in 1992. Thebe is fifty percent-owned by Batho Batho Rely on. The believe in has donated R60-million to your ANC because 2021, As outlined by declarations made towards the electoral commission.
Ithuba, the holder in the licence, can be 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, throughruay his enterprise Neo Solutions, contributed R2-million in the direction of the luxury mansion of the then-NLC chair Aflred Nevhutanda — while his company Neo Solutions experienced a agreement With all the NLC. Natasen told GroundUp At the moment that Neo Answers was “appointed with the NLC’s source chain processes, as and when products and services are expected”.