Announcement of new lottery licence operator postponed - once more
Announcement of new lottery licence operator postponed - once more
Blog Article
Parks Tau, the trade and market minister, has postponed naming a winning bidder to operate South Africa’s lottery once the tenure of current operator, Ithuba, ends in Could future yr.
Ithuba’s licence was owing to obtain expired in Might 2023 but was extended for 2 a long time by Tau’s predecessor Ebrahim Patel after a request via the then freshly-appointed board of the National Lotteries Fee (NLC).
The Board, which was handling the corruption that experienced overcome the NLC, also encouraged Patel of representations by Ithuba that it were seriously influenced via the Covid pandemic. This integrated a ban over the sale of lottery tickets at the height on the pandemic.
Concerning the extension, Ithuba experienced to make contributions towards the NLC for distribution to great triggers at a better charge than offered for in their Preliminary licence.
New licence operators are supplied 6 months to arrange infrastructure, such as ticket machines countrywide, to consider above through the preceding operator prior to the incumbent’s licence ends. This latest postponement ensures that there will not be sufficient time for any smooth transition and It truly is not likely that Tau will lengthen Ithuba’s licence again.
The process of appointing a completely new licence operator has also been tormented by allegations of conflict of desire and other challenges.
GroundUp has uncovered that the NLC has contingency plans in position to carry on funding very good leads to for approximately a calendar year When the lottery plus the sale of lottery tickets are suspended.
The contingency also handles funding within the function of litigation by shedding bidders every time a new operator is at last declared, which could also derail The graceful jogging with the lottery.
Just in case ticket profits 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 instructed GroundUp.
In his weekend assertion saying the postponement, Tau mentioned: “However, I am not able to produce a ultimate choice at this time. Any these kinds of choice presently would in all very good conscience mean that I have not applied my brain with thanks thought of each of the related components.”
“I have identified matters that demand further more analysis. It will be inappropriate to reveal these issues now as well as their disclosure could really properly prejudice the correct adjudication in the awarding on the licence.”
Tau explained he was awaiting guidance on The easiest way to ensure the continuation of the lottery from the interim as well as the “development of a programme to finalise this method”.
This, he said, has to be finished right after consultation While using the National Treasury.”
Tau also hinted on the political makeup in the consortiums bidding for that licence as A different possible reason for the postponement.
He said: “I need to also be sure that the entrepreneurs and supervisors in the productive applicants are, because the Act states, ‘in good shape and suitable folks’. Moreover, I need to make certain that no political bash or political Place of work-bearer has any direct economical desire within the applicant or possibly a shareholder with the applicant.”
Business Working day claimed previously that many of the companies shortlisted to the tender are politically exposed.
The Gold Hurry consortium is led by superior-profile businessperson Sandile Zungu, who challenged with the ANC KwaZulu-Natal chair posture in 2022 in advance of dropping out immediately after he failed to garner enough aid, the paper described.
Yet another politically related bidder is HCI, which happens to be the greater part-owned through the South African Clothing and Textile Employees’ Union, an affiliate of Cosatu, which is in alliance With all the ANC. CEO Johnny Copelyn donated to President Cyril Ramaphosa’s CR17 marketing campaign with the ANC presidency.
Another shortlisted bidder, In line with Small business Working day, is Thebe Investment Company, which was Established by ANC leaders in 1992. Thebe is 50 %-owned by Batho Batho Belief. The belief has donated R60-million to the ANC because 2021, Based on declarations built into the electoral commission.
Ithuba, the holder from the licence, is usually while in the operating, as is Umbulelo Consortium, led by Afrirent Holdings; and Giya Online games, Based on Business enterprise Day.
Vivien Natasen consulted for Giya Video games on its bid. GroundUp described in 2022 that Natasen, throughluckyvip77 his enterprise Neo Remedies, contributed R2-million towards the luxury mansion with the then-NLC chair Aflred Nevhutanda — whilst his firm Neo Methods had a contract Together with the NLC. Natasen explained to GroundUp At the moment that Neo Solutions was “appointed through the NLC’s supply chain processes, as and when solutions are necessary”.
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