Announcement of new lottery licence operator postponed - again
Announcement of new lottery licence operator postponed - again
Blog Article
Parks Tau, the trade and market minister, has postponed naming a successful bidder to operate South Africa’s lottery if the tenure of latest operator, Ithuba, ends in Might next 12 months.
Ithuba’s licence was due to possess expired in May possibly 2023 but was prolonged for 2 yrs by Tau’s predecessor Ebrahim Patel following a request from the then freshly-appointed board of your Countrywide Lotteries Commission (NLC).
The Board, which was handling the corruption that had confused the NLC, also suggested Patel of representations by Ithuba that it were severely affected by the Covid pandemic. This involved a ban within the sale of lottery tickets at the height of the pandemic.
With regards to the extension, Ithuba experienced to create contributions to your NLC for distribution to very good leads to at a higher fee than furnished for inside their Preliminary licence.
New licence operators are offered 6 months to arrange infrastructure, including ticket equipment countrywide, to acquire around from your prior operator ahead of the incumbent’s licence ends. This hottest postponement implies that there won't be sufficient time for your smooth transition and It can be not likely that Tau will extend Ithuba’s licence once again.
The whole process of appointing a whole new licence operator has also been suffering from allegations of conflict of fascination and also other difficulties.
GroundUp has discovered that the NLC has contingency programs in place to carry on funding fantastic brings about for around a year In case the lottery along with the sale of lottery tickets are suspended.
The contingency also covers funding in the party of litigation by dropping bidders any time a new operator is at last declared, which could also derail The sleek working from the lottery.
Just in case 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 program instructed GroundUp.
In his weekend assertion asserting the postponement, Tau said: “Regrettably, I am not ready to make a final selection at this stage. Any this sort of conclusion presently would in all fantastic conscience signify that I haven't utilized my head with because of consideration of all the applicable things.”
“I've discovered issues that call for even further evaluation. It would be inappropriate to disclose these problems now and their disclosure could very properly prejudice the appropriate adjudication from the awarding on the licence.”
Tau claimed he was awaiting information on The easiest 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 said, must be finished immediately after consultation with the Countrywide Treasury.”
Tau also hinted on the political make-up from the consortiums bidding with the licence as Yet another probable basis for the postponement.
He claimed: “I need to also make certain that the house owners and administrators of the effective applicants are, since the Act states, ‘healthy and good persons’. Furthermore, I have to be certain that no political occasion or political Business-bearer has any immediate money fascination while in the applicant or even a shareholder in the applicant.”
Company Working day documented Formerly that almost all of the businesses shortlisted with the tender are politically exposed.
The Gold Hurry consortium is led by large-profile businessperson Sandile Zungu, who challenged for the ANC KwaZulu-Natal chair situation in 2022 ahead of dropping out after he did not garner more than enough help, the paper described.
A further politically related bidder is HCI, that is the greater part-owned via the South African Outfits and Textile Personnel’ Union, an affiliate of Cosatu, which is in alliance with the ANC. CEO Johnny Copelyn donated to President Cyril Ramaphosa’s CR17 marketing campaign for that ANC presidency.
A different shortlisted bidder, As outlined by Enterprise Working day, is Thebe Financial commitment Corporation, which was Started by ANC leaders in 1992. Thebe is 50 %-owned by Batho Batho Have faith in. The believe in has donated R60-million into the ANC given that 2021, As outlined by declarations made for the electoral commission.
Ithuba, the holder on the licence, is usually in the operating, 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, bylottovip his company Neo Options, contributed R2-million in direction of the posh mansion in the then-NLC chair Aflred Nevhutanda — even though his firm Neo Remedies had a deal While using the NLC. Natasen explained to GroundUp at that time that Neo Options was “appointed in the NLC’s offer chain processes, as and when expert services are essential”.