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 industry minister, has postponed naming a successful bidder to operate South Africa’s lottery if the tenure of present-day operator, Ithuba, finishes in May well upcoming 12 months.
Ithuba’s licence was owing to acquire expired in May well 2023 but was extended for two a long time by Tau’s predecessor Ebrahim Patel following a request by the then recently-appointed board of the Nationwide Lotteries Fee (NLC).
The Board, which was handling the corruption that experienced overwhelmed the NLC, also suggested Patel of representations by Ithuba that it had been seriously afflicted by the Covid pandemic. This provided a ban over the sale of lottery tickets at the peak of the pandemic.
Regarding the extension, Ithuba had to generate contributions to your NLC for distribution to superior causes at the next price than supplied for within their First licence.
New licence operators are presented six months to set up infrastructure, including ticket equipment countrywide, to get more than with the earlier operator ahead of the incumbent’s licence ends. This most current postponement ensures that there will not be adequate time for your smooth transition and It truly is not likely that Tau will increase Ithuba’s licence again.
The entire process of appointing a different licence operator has also been stricken by allegations of conflict of interest and also other challenges.
GroundUp has discovered that the NLC has contingency programs set up to carry on funding superior causes for up to a calendar year If your lottery as well as sale of lottery tickets are suspended.
The contingency also addresses funding inside the event of litigation by shedding bidders every time a new operator is ultimately declared, which could also derail The sleek functioning with the lottery.
In the event ticket gross sales are stopped, the NLC will use its reserves of R3.9-billion to continue funding qualifying organisations, a resource with knowledge of the contingency prepare explained to GroundUp.
In his weekend assertion announcing the postponement, Tau mentioned: “Sad to say, I'm not able to make a final selection at this stage. Any these decision at this time would in all good conscience imply which i haven't applied my mind with thanks thought of each of the pertinent elements.”
“I've recognized issues that demand additional evaluation. It will be inappropriate to reveal these difficulties now as well as their disclosure could really perfectly prejudice the correct adjudication of your awarding from the licence.”
Tau explained he was awaiting assistance on The easiest way to make sure the continuation with the lottery in the interim and also the “progress of a programme to finalise this process”.
This, he stated, should be done just after consultation Using the Countrywide Treasury.”
Tau also hinted with the political makeup of your consortiums bidding with the licence as A further doable cause of the postponement.
He reported: “I must also ensure that the homeowners and administrators of the prosperous applicants are, given that the Act states, ‘suit and good persons’. Furthermore, I have to be sure that no political party or political Workplace-bearer has any immediate economical fascination while in the applicant or even a shareholder from the applicant.”
Business Working day noted previously that most of the businesses 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 situation in 2022 prior to dropping out just after he failed to garner ample assistance, the paper described.
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, which can be in alliance Together with the ANC. CEO Johnny Copelyn donated to President Cyril Ramaphosa’s CR17 campaign with the ANC presidency.
One more shortlisted bidder, In accordance with Company Working day, is Thebe Investment decision Company, which was founded by ANC leaders in 1992. Thebe is 50 percent-owned by Batho Batho Trust. The belief has donated R60-million towards the ANC due to the fact 2021, Based on declarations created 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, In line with Small business Day.
Vivien Natasen consulted for Giya Games on its bid. GroundUp claimed in 2022 that Natasen, byหวย รัฐบาล his corporation Neo Methods, contributed R2-million towards 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 Remedies was “appointed with the NLC’s source chain processes, as and when services are expected”.