Announcement of latest lottery licence operator postponed - once again
Announcement of latest lottery licence operator postponed - once again
Blog Article
Parks Tau, the trade and field minister, has postponed naming a winning bidder to run South Africa’s lottery in the event the tenure of current operator, Ithuba, finishes in May possibly up coming year.
Ithuba’s licence was owing to possess expired in May 2023 but was extended for 2 a long time by Tau’s predecessor Ebrahim Patel following a request via the then newly-appointed board on the National Lotteries Commission (NLC).
The Board, which was dealing with the corruption that had overcome the NLC, also encouraged Patel of representations by Ithuba that it had been severely influenced from the Covid pandemic. This involved a ban on the sale of lottery tickets at the height on the pandemic.
In terms of the extension, Ithuba experienced to make contributions to the NLC for distribution to good results in at the next amount than furnished for within their Original licence.
New licence operators are presented six months to build infrastructure, which includes ticket equipment countrywide, to just take around within the preceding operator before the incumbent’s licence ends. This latest postponement ensures that there won't be adequate time for a clean changeover and It is not likely that Tau will lengthen Ithuba’s licence again.
The whole process of appointing a whole new licence operator has also been plagued by allegations of conflict of interest and various problems.
GroundUp has uncovered the NLC has contingency designs set up to continue funding very good brings about for as many as a yr When the lottery along with the sale of lottery tickets are suspended.
The contingency also covers funding in the celebration of litigation by losing bidders every time a new operator is lastly introduced, which could also derail The graceful running of your lottery.
In the event that ticket product sales are stopped, the NLC will use its reserves of R3.nine-billion to carry on funding qualifying organisations, a source with familiarity with the contingency plan informed GroundUp.
In his weekend statement announcing the postponement, Tau explained: “Sad to say, I'm not able to make a final decision at this time. Any this kind of choice at this time would in all good conscience imply which i have not used my mind with owing thought of each of the related factors.”
“I have discovered matters that involve even more analysis. It could be inappropriate to disclose these difficulties now as well as their disclosure could very properly prejudice the proper adjudication in the awarding from the licence.”
Tau said he was awaiting tips on The obvious way to ensure the continuation with the lottery within the interim along with the “progress of the programme to finalise this method”.
This, he explained, need to be performed after session While using the Nationwide Treasury.”
Tau also hinted for the political makeup in the consortiums bidding for the licence as A different doable cause for the postponement.
He said: “I have to also make sure the proprietors and supervisors of the prosperous applicants are, as the Act states, ‘suit and right people’. Furthermore, I have to be sure that no political bash or political office-bearer has any immediate money curiosity within the applicant or perhaps a shareholder from the applicant.”
Business Working day documented previously that the majority of of the companies shortlisted with 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 place in 2022 before dropping out just after he failed to garner plenty of assistance, the paper documented.
Another politically connected bidder is HCI, which can be majority-owned from the South African Apparel and Textile Employees’ Union, an affiliate of Cosatu, that's in alliance With all the ANC. CEO Johnny Copelyn donated to President Cyril Ramaphosa’s CR17 campaign for your ANC presidency.
Yet another shortlisted bidder, In accordance with Organization Day, is Thebe Investment decision Company, which was Launched by ANC leaders in 1992. Thebe is fifty percent-owned by Batho Batho Have confidence in. The believe in has donated R60-million to the ANC since 2021, In line with declarations created into the electoral commission.
Ithuba, the holder of your licence, is additionally from the running, as is Umbulelo Consortium, led by Afrirent Holdings; and Giya Games, As outlined by Company Day.
Vivien Natasen consulted for Giya Games on its bid. GroundUp noted in 2022 that Natasen, byหวย วัน นี้ his enterprise Neo Options, contributed R2-million in direction of the posh mansion with the then-NLC chair Aflred Nevhutanda — though his company Neo Methods experienced a agreement Together with the NLC. Natasen advised GroundUp at that time that Neo Solutions was “appointed in the NLC’s provide chain procedures, as and when expert services are essential”.