Announcement of latest lottery licence operator postponed - yet again
Announcement of latest lottery licence operator postponed - yet again
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Parks Tau, the trade and business minister, has postponed naming a winning bidder to run South Africa’s lottery when the tenure of present operator, Ithuba, finishes in May well following yr.
Ithuba’s licence was thanks to get expired in Might 2023 but was prolonged for 2 several years by Tau’s predecessor Ebrahim Patel following a request via the then newly-appointed board on the Countrywide Lotteries Commission (NLC).
The Board, which was handling the corruption that experienced confused the NLC, also encouraged Patel of representations by Ithuba that it had been severely affected through the Covid pandemic. This provided a ban about the sale of lottery tickets at the height on the pandemic.
With regard to the extension, Ithuba experienced for making contributions to your NLC for distribution to fantastic brings about at a better charge than supplied for of their Preliminary licence.
New licence operators are given 6 months to setup infrastructure, together with ticket devices countrywide, to choose in excess of from the preceding operator ahead of the incumbent’s licence ends. This most current postponement ensures that there won't be sufficient time for any clean changeover and It is actually not likely that Tau will extend Ithuba’s licence once more.
The entire process of appointing a whole new licence operator has also been tormented by allegations of conflict of fascination and other issues.
GroundUp has learned which the NLC has contingency options in position to carry on funding fantastic brings about for around a calendar year If your lottery along with the sale of lottery tickets are suspended.
The contingency also covers funding from the occasion of litigation by shedding bidders when a new operator is ultimately declared, which could also derail the smooth working with the lottery.
In case ticket product sales are stopped, the NLC will use its reserves of R3.9-billion to continue funding qualifying organisations, a supply with familiarity with the contingency system explained to GroundUp.
In his weekend assertion saying the postponement, Tau explained: “However, I am not in a position to create a final choice at this time. Any these determination at the moment would in all great conscience necessarily mean that I haven't utilized my intellect with because of thing to consider of every one of the related components.”
“I have determined issues that require even more analysis. It would be inappropriate to disclose these troubles now as well as their disclosure could pretty nicely prejudice the correct adjudication on the awarding with the licence.”
Tau reported he was awaiting advice on The obvious way to make sure the continuation in the lottery inside the interim as well as the “advancement of a programme to finalise this method”.
This, he mentioned, should be done just after consultation with the Nationwide Treasury.”
Tau also hinted in the political makeup of your consortiums bidding to the licence as A further achievable reason behind the postponement.
He stated: “I have to also make sure the owners and professionals on the prosperous applicants are, given that the Act states, ‘match and appropriate individuals’. Furthermore, I must make certain that no political get together or political Place of work-bearer has any direct economical fascination inside the applicant or perhaps a shareholder of the applicant.”
Business enterprise Day claimed Formerly that the majority of the businesses shortlisted for the tender are politically exposed.
The Gold Hurry consortium is led by high-profile businessperson Sandile Zungu, who challenged for your ANC KwaZulu-Natal chair situation in 2022 prior to dropping out soon after he didn't garner more than enough assistance, the paper documented.
One more politically linked bidder is HCI, and that is majority-owned by the South African Outfits and Textile Personnel’ Union, an affiliate of Cosatu, which happens to be in alliance While using the ANC. CEO Johnny Copelyn donated to President Cyril Ramaphosa’s CR17 marketing campaign for your ANC presidency.
Another shortlisted bidder, In keeping with Small business Day, is Thebe Investment Corporation, which was Established by ANC leaders in 1992. Thebe is half-owned by Batho Batho Rely on. The believe in has donated R60-million to your ANC because 2021, As outlined by 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, by way ofหวย ลาว ย้อน หลัง his organization Neo Alternatives, contributed R2-million to the luxury mansion in the then-NLC chair Aflred Nevhutanda — when his company Neo Options had a deal With all the NLC. Natasen instructed GroundUp at that time that Neo Answers was “appointed with the NLC’s supply chain processes, as and when products and services are expected”.