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 sector minister, has postponed naming a profitable bidder to operate South Africa’s lottery when the tenure of present operator, Ithuba, finishes in May well following yr.
Ithuba’s licence was thanks to own expired in Might 2023 but was prolonged for 2 several years by Tau’s predecessor Ebrahim Patel following a request via the then recently-appointed board with the National Lotteries Commission (NLC).
The Board, which was coping with the corruption that had overcome the NLC, also recommended Patel of representations by Ithuba that it were seriously afflicted by the Covid pandemic. This incorporated a ban about the sale of lottery tickets at the height in the pandemic.
Concerning the extension, Ithuba experienced to help make contributions into the NLC for distribution to superior will cause at an increased charge than offered for in their First licence.
New licence operators are provided 6 months to put in place infrastructure, which includes ticket equipment countrywide, to consider about from your former operator before the incumbent’s licence ends. This hottest postponement implies that there will not be enough time for just a smooth transition and It really is unlikely that Tau will lengthen Ithuba’s licence once again.
The entire process of appointing a different licence operator has also been stricken by allegations of conflict of desire as well as other concerns.
GroundUp has uncovered the NLC has contingency programs in place to carry on funding excellent triggers for up to a calendar year In case the lottery as well as the sale of lottery tickets are suspended.
The contingency also handles funding inside the event of litigation by dropping bidders any time a new operator is ultimately declared, which could also derail The graceful operating with 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 source with understanding of the contingency system explained to GroundUp.
In his weekend assertion saying the postponement, Tau explained: “Sad to say, I am not able to produce a last choice at this time. Any these determination at the moment would in all good conscience necessarily mean that I haven't applied my head with because of thing to consider of every one of the relevant variables.”
“I've identified matters that require more analysis. It will be inappropriate to reveal these problems now and their disclosure could quite perfectly prejudice the proper adjudication from the awarding in the licence.”
Tau explained he was awaiting tips on The simplest way to ensure the continuation of the lottery in the interim as well as “enhancement of a programme to finalise this process”.
This, he reported, need to be completed following session Together with the National Treasury.”
Tau also hinted for the political make-up in the consortiums bidding with the licence as Yet another probable cause of the postponement.
He claimed: “I need to also make sure that the homeowners and supervisors of your effective applicants are, because the Act states, ‘suit and suitable individuals’. Moreover, I have to be certain that no political social gathering or political Business office-bearer has any direct financial fascination while in the applicant or perhaps a shareholder of the applicant.”
Small business Day described Formerly that most of the companies shortlisted with the tender are politically exposed.
The Gold Rush consortium is led by significant-profile businessperson Sandile Zungu, who challenged for the ANC KwaZulu-Natal chair placement in 2022 right before dropping out right after he did not garner plenty of aid, the paper reported.
Yet another politically linked bidder is HCI, that's the greater part-owned because of the South African Garments and Textile Staff’ 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 Corporation, which was Launched by ANC leaders in 1992. Thebe is half-owned by Batho Batho Have faith in. The believe in has donated R60-million to your ANC given that 2021, In keeping with declarations made for 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 Enterprise Day.
Vivien Natasen consulted for Giya Game titles on its bid. GroundUp described in 2022 that Natasen, byหวย ไทยรัฐ his organization Neo Alternatives, contributed R2-million to the luxurious mansion of your then-NLC chair Aflred Nevhutanda — while his company Neo Solutions experienced a agreement Together with the NLC. Natasen informed GroundUp At the moment that Neo Alternatives was “appointed throughout the NLC’s supply chain procedures, as and when companies are needed”.