Announcement of recent lottery licence operator postponed - again
Announcement of recent lottery licence operator postponed - again
Blog Article
Parks Tau, the trade and field minister, has postponed naming a profitable bidder to operate South Africa’s lottery if the tenure of recent operator, Ithuba, finishes in May well next calendar year.
Ithuba’s licence was owing to get expired in Might 2023 but was prolonged for 2 decades by Tau’s predecessor Ebrahim Patel after a request because of the then newly-appointed board in the National Lotteries Fee (NLC).
The Board, which was dealing with the corruption that experienced overwhelmed the NLC, also advised Patel of representations by Ithuba that it had been seriously impacted through the Covid pandemic. This integrated a ban to the sale of lottery tickets at the peak on the pandemic.
With regard to the extension, Ithuba had for making contributions to the NLC for distribution to very good causes at a better fee than provided for in their initial licence.
New licence operators are provided six months to arrange infrastructure, together with ticket devices countrywide, to just take more than within the past operator before the incumbent’s licence ends. This latest postponement signifies that there won't be sufficient time for the sleek changeover and It really is unlikely that Tau will prolong Ithuba’s licence all over again.
The process of appointing a fresh licence operator has also been tormented by allegations of conflict of fascination as well as other difficulties.
GroundUp has acquired the NLC has contingency options in position to continue funding good causes for nearly a yr When the lottery and also the sale of lottery tickets are suspended.
The contingency also handles funding inside the event of litigation by shedding bidders whenever a new operator is at last announced, which could also derail The sleek functioning in the lottery.
In the event that ticket revenue are stopped, the NLC will use its reserves of R3.9-billion to continue funding qualifying organisations, a supply with expertise in the contingency plan told GroundUp.
In his weekend statement announcing the postponement, Tau stated: “Regrettably, I am not in a position to make a final decision at this time. Any these kinds of determination at the moment would in all good conscience mean which i have not utilized my mind with thanks thought of all the suitable elements.”
“I have discovered issues that demand additional evaluation. It will be inappropriate to reveal these troubles now as well as their disclosure could very properly prejudice the right adjudication of the awarding from the licence.”
Tau mentioned he was awaiting tips on The obvious way to make sure the continuation on the lottery while in the interim plus the “progress of a programme to finalise this process”.
This, he reported, needs to be finished soon after consultation While using the Nationwide Treasury.”
Tau also hinted in the political make-up from the consortiums bidding with the licence as Yet another possible cause for the postponement.
He mentioned: “I have to also make sure that the house owners and administrators of the profitable applicants are, given that the Act states, ‘fit and correct individuals’. Moreover, I have to be certain that no political occasion or political office-bearer has any immediate money fascination while in the applicant or even a shareholder of the applicant.”
Business enterprise Day reported Beforehand that a lot of of the companies shortlisted with the tender are politically exposed.
The Gold Rush consortium is led by high-profile businessperson Sandile Zungu, who challenged for that ANC KwaZulu-Natal chair position in 2022 ahead of dropping out after he failed to garner adequate guidance, the paper claimed.
Another politically connected bidder is HCI, that is greater part-owned with the South African Apparel and Textile Staff’ Union, an affiliate of Cosatu, that's in alliance Along with the ANC. CEO Johnny Copelyn donated to President Cyril Ramaphosa’s CR17 marketing campaign for your ANC presidency.
An additional shortlisted bidder, Based on Business Day, is Thebe Investment decision Company, which was Started by ANC leaders in 1992. Thebe is 50 %-owned by Batho Batho Have confidence in. The trust has donated R60-million to your ANC because 2021, As outlined by declarations made towards the electoral commission.
Ithuba, the holder on the licence, is likewise during the running, as is Umbulelo Consortium, led by Afrirent Holdings; and Giya Games, Based on Company Day.
Vivien Natasen consulted for Giya Game titles on its bid. GroundUp claimed in 2022 that Natasen, byตรวจ รางวัล his corporation Neo Methods, contributed R2-million towards the luxury mansion of the then-NLC chair Aflred Nevhutanda — while his business Neo Options experienced a agreement Together with the NLC. Natasen advised GroundUp at that time that Neo Methods was “appointed from the NLC’s provide chain procedures, as and when companies are necessary”.