Announcement of new lottery licence operator postponed - again
Announcement of new lottery licence operator postponed - again
Blog Article
Parks Tau, the trade and sector minister, has postponed naming a profitable bidder to run South Africa’s lottery if the tenure of present-day operator, Ithuba, finishes in May subsequent yr.
Ithuba’s licence was due to possess expired in Might 2023 but was extended for 2 yrs by Tau’s predecessor Ebrahim Patel after a ask for via the then freshly-appointed board in the National Lotteries Fee (NLC).
The Board, which was handling the corruption that had overcome the NLC, also encouraged Patel of representations by Ithuba that it had been seriously affected because of the Covid pandemic. This incorporated a ban over the sale of lottery tickets at the height on the pandemic.
When it comes to the extension, Ithuba had to help make contributions towards the NLC for distribution to very good results in at a higher charge than presented for inside their First licence.
New licence operators are supplied 6 months to put in place infrastructure, which include ticket devices countrywide, to just take in excess of through the earlier operator before the incumbent’s licence finishes. This most recent postponement implies that there won't be adequate time for just a clean changeover and It can be unlikely that Tau will lengthen Ithuba’s licence again.
The entire process of appointing a new licence operator has also been affected by allegations of conflict of desire together with other issues.
GroundUp has uncovered the NLC has contingency designs set up to carry on funding good leads to for around a yr In case the lottery plus the sale of lottery tickets are suspended.
The contingency also addresses funding while in the function of litigation by dropping bidders when a new operator is finally declared, which could also derail the smooth running with the lottery.
In the event ticket sales are stopped, the NLC will use its reserves of R3.9-billion to carry on funding qualifying organisations, a source with familiarity with the contingency strategy instructed GroundUp.
In his weekend assertion announcing the postponement, Tau explained: “Unfortunately, I am not in a position for making a final selection at this stage. Any these conclusion at this time would in all great conscience suggest that I haven't used my head with owing thought of every one of the appropriate aspects.”
“I have recognized matters that have to have further more analysis. It could be inappropriate to disclose these challenges now as well as their disclosure could really properly prejudice the correct adjudication from the awarding of your licence.”
Tau explained he was awaiting guidance on The easiest method to make sure the continuation from the lottery in the interim and the “growth of the programme to finalise this method”.
This, he claimed, needs to be finished soon after session Using the Nationwide Treasury.”
Tau also hinted within the political makeup on the consortiums bidding for the licence as A different doable basis for the postponement.
He claimed: “I must also make sure that the proprietors and managers of the thriving applicants are, as being the Act states, ‘suit and proper individuals’. Additionally, I have to ensure that no political occasion or political Workplace-bearer has any immediate money desire within the applicant or possibly a shareholder with the applicant.”
Business Working day claimed Beforehand that most of the businesses shortlisted with the tender are politically exposed.
The Gold Rush consortium is led by higher-profile businessperson Sandile Zungu, who challenged for the ANC KwaZulu-Natal chair posture in 2022 right before dropping out after he didn't garner ample assistance, the paper claimed.
One more politically connected bidder is HCI, and that is bulk-owned by the South African Clothes and Textile Personnel’ Union, an affiliate of Cosatu, that is in alliance Along with the ANC. CEO Johnny Copelyn donated to President Cyril Ramaphosa’s CR17 marketing campaign for the ANC presidency.
One more shortlisted bidder, according to Company Day, is Thebe Expenditure Corporation, which was Started by ANC leaders in 1992. Thebe is half-owned by Batho Batho Trust. The trust has donated R60-million into the ANC since 2021, according to declarations made into the electoral commission.
Ithuba, the holder of your licence, can be within the functioning, as is Umbulelo Consortium, led by Afrirent Holdings; and Giya Video games, In keeping with Enterprise Working day.
Vivien Natasen consulted for Giya Game titles on its bid. GroundUp reported in 2022 that Natasen, by way ofผล สลาก his corporation Neo Options, contributed R2-million to the luxury mansion with the then-NLC chair Aflred Nevhutanda — whilst his corporation Neo Solutions had a contract Along with the NLC. Natasen told GroundUp at that time that Neo Answers was “appointed in the NLC’s supply chain processes, as and when companies are expected”.
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