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 marketplace minister, has postponed naming a winning bidder to operate South Africa’s lottery in the event the tenure of present operator, Ithuba, ends in May possibly upcoming 12 months.
Ithuba’s licence was owing to own expired in May well 2023 but was extended for two many years by Tau’s predecessor Ebrahim Patel following a request with the then newly-appointed board of your Nationwide Lotteries Commission (NLC).
The Board, which was addressing the corruption that had confused the NLC, also suggested Patel of representations by Ithuba that it were severely influenced from the Covid pandemic. This involved a ban around the sale of lottery tickets at the peak of your pandemic.
With regard to the extension, Ithuba experienced to produce contributions to your NLC for distribution to good triggers at a better amount than provided for in their initial licence.
New licence operators are given 6 months to arrange infrastructure, together with ticket equipment countrywide, to acquire in excess of through the earlier operator before the incumbent’s licence finishes. This most recent postponement means that there won't be adequate time for just a clean changeover and It truly is not likely that Tau will lengthen Ithuba’s licence all over again.
The entire process of appointing a new licence operator has also been affected by allegations of conflict of desire along with other difficulties.
GroundUp has learned that the NLC has contingency programs in position to continue funding very good results in for nearly a calendar year if the lottery and also the sale of lottery tickets are suspended.
The contingency also covers funding in the event of litigation by getting rid of bidders every time a new operator is last but not least announced, which could also derail The graceful managing in the lottery.
In case ticket profits are stopped, the NLC will use its reserves of R3.9-billion to continue funding qualifying organisations, a resource with understanding of the contingency plan advised GroundUp.
In his weekend assertion asserting the postponement, Tau mentioned: “Sad to say, I'm not in a position to produce a closing decision at this stage. Any this sort of final decision presently would in all superior conscience mean which i haven't utilized my brain with because of thought of each of the pertinent elements.”
“I've determined matters that require further more evaluation. It would be inappropriate to reveal these problems now as well as their disclosure could quite well prejudice the right adjudication from the awarding with the licence.”
Tau mentioned he was awaiting information on The easiest way to make sure the continuation from the lottery from the interim and the “advancement of a programme to finalise this process”.
This, he explained, need to be finished after session with the Countrywide Treasury.”
Tau also hinted within the political make-up in the consortiums bidding for your licence as An additional possible reason behind the postponement.
He explained: “I must also ensure that the house owners and professionals of your profitable applicants are, as the Act states, ‘in shape and proper individuals’. On top of that, I must be sure that no political party or political Place of work-bearer has any direct money desire during the applicant or a shareholder from the applicant.”
Enterprise Day reported previously that the majority 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 that ANC KwaZulu-Natal chair place in 2022 prior to dropping out just after he did not garner enough guidance, the paper noted.
A further politically connected bidder is HCI, which happens to be bulk-owned via the South African Clothes and Textile Staff’ Union, an affiliate of Cosatu, which happens to be in alliance With all the ANC. CEO Johnny Copelyn donated to President Cyril Ramaphosa’s CR17 campaign to the ANC presidency.
A different shortlisted bidder, according to Company Working day, is Thebe Investment Company, which was Launched by ANC leaders in 1992. Thebe is fifty percent-owned by Batho Batho Have confidence in. The have confidence in has donated R60-million towards the ANC because 2021, according to declarations designed for the electoral Fee.
Ithuba, the holder on the licence, can be from the working, as is Umbulelo Consortium, led by Afrirent Holdings; and Giya Games, according to Small business Day.
Vivien Natasen consulted for Giya Game titles on its bid. GroundUp described in 2022 that Natasen, throughตา ว จ หวย his corporation Neo Remedies, contributed R2-million in the direction of the luxurious mansion from the then-NLC chair Aflred Nevhutanda — when his organization Neo Solutions had a agreement While using the NLC. Natasen informed GroundUp at that time that Neo Alternatives was “appointed in the NLC’s supply chain procedures, as and when solutions are necessary”.
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