Announcement of new lottery licence operator postponed - yet again
Announcement of new lottery licence operator postponed - yet again
Blog Article
Parks Tau, the trade and industry minister, has postponed naming a winning bidder to run South Africa’s lottery in the event the tenure of present operator, Ithuba, ends in May perhaps subsequent year.
Ithuba’s licence was due to possess expired in Might 2023 but was extended for 2 several years by Tau’s predecessor Ebrahim Patel after a ask for via the then recently-appointed board on the National Lotteries Fee (NLC).
The Board, which was addressing the corruption that had confused the NLC, also suggested Patel of representations by Ithuba that it were severely affected via the Covid pandemic. This incorporated a ban around the sale of lottery tickets at the height on the pandemic.
With regards to the extension, Ithuba had for making contributions to the NLC for distribution to good leads to at a greater charge than offered for within their First licence.
New licence operators are supplied six months to setup infrastructure, like ticket devices countrywide, to get above with the earlier operator ahead of the incumbent’s licence ends. This most up-to-date postponement means that there won't be ample time for any clean changeover and It's unlikely that Tau will prolong Ithuba’s licence again.
The entire process of appointing a new licence operator has also been affected by allegations of conflict of curiosity along with other difficulties.
GroundUp has learned that the NLC has contingency ideas in position to continue funding fantastic causes for as much as a yr In the event the lottery along with the sale of lottery tickets are suspended.
The contingency also covers funding in the party of litigation by dropping bidders when a new operator is at last introduced, which could also derail The graceful jogging in the lottery.
In the event that ticket income are stopped, the NLC will use its reserves of R3.nine-billion to carry on funding qualifying organisations, a resource with knowledge of the contingency program advised GroundUp.
In his weekend statement saying the postponement, Tau claimed: “Regretably, I'm not ready to help make a remaining decision at this time. Any these final decision right now would in all very good conscience suggest which i have not used my head with due thought of each of the related things.”
“I have determined issues that need further more evaluation. It might be inappropriate to disclose these issues now and their disclosure could quite very well prejudice the appropriate adjudication of the awarding from the licence.”
Tau mentioned he was awaiting tips on The easiest method to ensure the continuation from the lottery inside the interim as well as the “growth of a programme to finalise this method”.
This, he explained, has to be done just after consultation With all the Countrywide Treasury.”
Tau also hinted on the political make-up on the consortiums bidding for the licence as A further attainable reason for the postponement.
He explained: “I need to also make certain that the house owners and administrators from the profitable applicants are, given that the Act states, ‘match and suitable individuals’. Moreover, I have to be certain that no political occasion or political Business-bearer has any immediate money curiosity within the applicant or a shareholder of your applicant.”
Small business Day claimed Formerly that the majority of the businesses shortlisted for the tender are politically exposed.
The Gold Hurry consortium is led by higher-profile businessperson Sandile Zungu, who challenged for that ANC KwaZulu-Natal chair position in 2022 ahead of dropping out after he failed to garner ample aid, the paper reported.
Yet another politically linked bidder is HCI, and that is the vast majority-owned by the South African Clothing and Textile Personnel’ Union, an affiliate of Cosatu, which is in alliance Using the ANC. CEO Johnny Copelyn donated to President Cyril Ramaphosa’s CR17 marketing campaign for that ANC presidency.
One more shortlisted bidder, In line with Enterprise Working day, is Thebe Financial commitment Corporation, which was Launched by ANC leaders in 1992. Thebe is half-owned by Batho Batho Trust. The rely on has donated R60-million towards the ANC considering the fact that 2021, In accordance with declarations built towards the electoral commission.
Ithuba, the holder in the licence, is likewise during the running, as is Umbulelo Consortium, led by Afrirent Holdings; and Giya Games, Based on Enterprise Day.
Vivien Natasen consulted for Giya Game titles on its bid. GroundUp claimed in 2022 that Natasen, throughหวย หุ้น ช่อง 9 his enterprise Neo Options, contributed R2-million in direction of the posh mansion on the then-NLC chair Aflred Nevhutanda — even though his corporation Neo Alternatives had a contract Together with the NLC. Natasen instructed GroundUp at that time that Neo Options was “appointed through the NLC’s offer chain processes, as and when products and services are expected”.