Announcement of new lottery licence operator postponed - once again
Announcement of new lottery licence operator postponed - once again
Blog Article
Parks Tau, the trade and field minister, has postponed naming a profitable bidder to operate South Africa’s lottery in the event the tenure of latest operator, Ithuba, ends in Might future yr.
Ithuba’s licence was thanks to acquire expired in Could 2023 but was prolonged for two several years by Tau’s predecessor Ebrahim Patel after a request via the then newly-appointed board with the Countrywide Lotteries Commission (NLC).
The Board, which was working with the corruption that experienced confused the NLC, also advised Patel of representations by Ithuba that it had been severely impacted with the Covid pandemic. This bundled a ban on the sale of lottery tickets at the peak of your pandemic.
With regards to the extension, Ithuba had to create contributions towards the NLC for distribution to great causes at a higher level than furnished for within their initial licence.
New licence operators are supplied six months to arrange infrastructure, like ticket machines countrywide, to acquire more than with the earlier operator ahead of the incumbent’s licence finishes. This most recent postponement signifies that there won't be ample time to get a easy changeover and It is actually not likely that Tau will increase Ithuba’s licence again.
The process of appointing a whole new licence operator has also been tormented by allegations of conflict of fascination and other issues.
GroundUp has learned which the NLC has contingency strategies in position to carry on funding fantastic brings about for around a year If your lottery plus the sale of lottery tickets are suspended.
The contingency also covers funding from the occasion of litigation by shedding bidders whenever a new operator is eventually announced, which could also derail the smooth managing 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 approach told GroundUp.
In his weekend assertion asserting the postponement, Tau claimed: “Regretably, I'm not able to produce a last selection at this stage. Any such conclusion right now would in all great conscience mean which i haven't utilized my mind with because of thing to consider of the many related components.”
“I have recognized issues that require even more analysis. It will be inappropriate to disclose these concerns now as well as their disclosure could pretty well prejudice the correct adjudication in the awarding on the licence.”
Tau claimed he was awaiting information on The easiest method to ensure the continuation from the lottery in the interim and the “development of the programme to finalise this process”.
This, he reported, need to be completed following session With all the Countrywide Treasury.”
Tau also hinted on the political make-up from the consortiums bidding for that licence as another attainable reason behind the postponement.
He stated: “I have to also make sure the owners and managers in the profitable applicants are, as being the Act states, ‘in good shape and proper folks’. In addition, I need to make sure no political bash or political Business-bearer has any direct monetary desire from the applicant or possibly a shareholder of the applicant.”
Business enterprise Day claimed Formerly that the majority of of the companies shortlisted for that tender are politically uncovered.
The Gold Rush consortium is led by large-profile businessperson Sandile Zungu, who challenged with the ANC KwaZulu-Natal chair position in 2022 ahead of dropping out just after he didn't garner sufficient help, the paper described.
A different politically related bidder is HCI, which happens to be majority-owned by the South African Clothing and Textile Personnel’ Union, an affiliate of Cosatu, and that is in alliance Along with the ANC. CEO Johnny Copelyn donated to President Cyril Ramaphosa’s CR17 campaign for the ANC presidency.
A further shortlisted bidder, As outlined by Organization Working day, is Thebe Financial commitment Company, which was Started by ANC leaders in 1992. Thebe is 50 %-owned by Batho Batho Have confidence in. The belief has donated R60-million for the ANC considering the fact that 2021, In accordance with declarations manufactured into the 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, As outlined by Small business Working day.
Vivien Natasen consulted for Giya Video games on its bid. GroundUp reported in 2022 that Natasen, throughlottovip his enterprise Neo Solutions, contributed R2-million in the direction of the luxury mansion from the then-NLC chair Aflred Nevhutanda — although his organization Neo Answers had a deal Along with the NLC. Natasen instructed GroundUp at that time that Neo Methods was “appointed from the NLC’s provide chain procedures, as and when expert services are necessary”.