Announcement of new lottery licence operator postponed - again
Announcement of new lottery licence operator postponed - again
Blog Article
Parks Tau, the trade and marketplace minister, has postponed naming a successful bidder to run South Africa’s lottery if the tenure of present operator, Ithuba, ends in May well subsequent yr.
Ithuba’s licence was because of to own expired in May well 2023 but was extended for two a long time by Tau’s predecessor Ebrahim Patel after a ask for by the then freshly-appointed board of the National Lotteries Fee (NLC).
The Board, which was dealing with the corruption that had confused the NLC, also suggested Patel of representations by Ithuba that it were severely affected via the Covid pandemic. This involved a ban about the sale of lottery tickets at the height on the pandemic.
With regards to the extension, Ithuba experienced to generate contributions to the NLC for distribution to very good causes at a better level than offered for within their First licence.
New licence operators are given 6 months to set up infrastructure, such as ticket machines countrywide, to take over in the prior operator ahead of the incumbent’s licence finishes. This most up-to-date postponement implies that there will not be enough time for your easy changeover and It is actually unlikely that Tau will lengthen Ithuba’s licence all over again.
The entire process of appointing a fresh licence operator has also been stricken by allegations of conflict of curiosity and other difficulties.
GroundUp has discovered the NLC has contingency plans in position to continue funding superior triggers for as many as a calendar year Should the lottery and also the sale of lottery tickets are suspended.
The contingency also covers funding within the function of litigation by dropping bidders each time a new operator is eventually introduced, which could also derail the smooth working on the lottery.
Just in case ticket product sales are stopped, the NLC will use its reserves of R3.nine-billion to continue funding qualifying organisations, a source with familiarity with the contingency approach told GroundUp.
In his weekend assertion saying the postponement, Tau stated: “Regretably, I'm not ready to make a closing determination at this time. Any these selection presently would in all good conscience necessarily mean which i haven't applied my thoughts with because of consideration of many of the related components.”
“I have recognized matters that demand further more analysis. It could be inappropriate to reveal these problems now as well as their disclosure could incredibly properly prejudice the correct adjudication from the awarding of the licence.”
Tau said he was awaiting guidance on The easiest way to ensure the continuation on the lottery inside the interim and also the “enhancement of the programme to finalise this process”.
This, he claimed, must be completed soon after session with the National Treasury.”
Tau also hinted on the political makeup on the consortiums bidding to the licence as One more achievable basis for the postponement.
He mentioned: “I have to also make certain that the homeowners and managers of the successful applicants are, given that the Act states, ‘healthy and suitable individuals’. Furthermore, I must make sure no political occasion or political Office environment-bearer has any immediate fiscal interest from the applicant or even a shareholder with the applicant.”
Company Day reported Formerly that the majority of of the companies shortlisted for your tender are politically exposed.
The Gold Hurry consortium is led by large-profile businessperson Sandile Zungu, who challenged for your ANC KwaZulu-Natal chair situation in 2022 ahead of dropping out just after he didn't garner enough support, the paper claimed.
A different politically connected bidder is HCI, that is vast majority-owned by the South African Garments and Textile Personnel’ Union, an affiliate of Cosatu, that's in alliance Using the ANC. CEO Johnny Copelyn donated to President Cyril Ramaphosa’s CR17 marketing campaign for your ANC presidency.
A further shortlisted bidder, In line with Business enterprise Day, is Thebe Financial commitment Company, which was founded by ANC leaders in 1992. Thebe is half-owned by Batho Batho Have faith in. The rely on has donated R60-million into the ANC considering the fact that 2021, In keeping with declarations designed to your electoral Fee.
Ithuba, the holder with the licence, is likewise from the managing, as is Umbulelo Consortium, led by Afrirent Holdings; and Giya Games, Based on Company Working day.
Vivien Natasen consulted for Giya Game titles on its bid. GroundUp documented in 2022 that Natasen, by means oflottovip his business Neo Methods, contributed R2-million in direction of the luxurious mansion in the then-NLC chair Aflred Nevhutanda — though his firm Neo Options experienced a deal With all the NLC. Natasen instructed GroundUp At the moment that Neo Options was “appointed from the NLC’s source chain procedures, as and when providers are essential”.
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