Announcement of new lottery licence operator postponed - once more
Announcement of new lottery licence operator postponed - once more
Blog Article
Parks Tau, the trade and industry minister, has postponed naming a successful bidder to operate South Africa’s lottery when the tenure of recent operator, Ithuba, finishes in Might following 12 months.
Ithuba’s licence was because of to possess expired in Might 2023 but was prolonged for 2 yrs by Tau’s predecessor Ebrahim Patel after a ask for through the then recently-appointed board with the National Lotteries Fee (NLC).
The Board, which was handling the corruption that had overwhelmed the NLC, also recommended Patel of representations by Ithuba that it were seriously impacted because of the Covid pandemic. This integrated a ban within the sale of lottery tickets at the peak of the pandemic.
Concerning the extension, Ithuba had for making contributions on the NLC for distribution to superior will cause at an increased level than presented for within their Preliminary licence.
New licence operators are provided six months to create infrastructure, together with ticket devices countrywide, to just take over from your earlier operator prior to the incumbent’s licence finishes. This latest postponement signifies that there won't be adequate time for just a clean changeover and It really is unlikely that Tau will increase Ithuba’s licence yet again.
The process of appointing a new licence operator has also been tormented by allegations of conflict of fascination and other troubles.
GroundUp has figured out the NLC has contingency options in position to continue funding very good will cause for as many as a 12 months Should the lottery as well as the sale of lottery tickets are suspended.
The contingency also covers funding inside the event of litigation by losing bidders when a new operator is at last introduced, which could also derail the smooth operating of your lottery.
In the event ticket gross sales are stopped, the NLC will use its reserves of R3.9-billion to carry on funding qualifying organisations, a source with familiarity with the contingency program told GroundUp.
In his weekend statement asserting the postponement, Tau stated: “Sad to say, I'm not ready to make a final decision at this stage. Any these decision at this time would in all good conscience suggest that I haven't used my mind with thanks thing to consider of the many pertinent elements.”
“I've recognized matters that have to have even more evaluation. It could be inappropriate to disclose these difficulties now as well as their disclosure could quite perfectly prejudice the correct adjudication from the awarding on the licence.”
Tau said he was awaiting suggestions on The easiest way to make sure the continuation in the lottery during the interim and also the “development of a programme to finalise this method”.
This, he claimed, have to be accomplished just after consultation With all the National Treasury.”
Tau also hinted in the political make-up in the consortiums bidding for your licence as another doable cause of the postponement.
He said: “I have to also make sure that the house owners and administrators of your thriving applicants are, as the Act states, ‘match and right persons’. Also, I have to make sure no political occasion or political Workplace-bearer has any direct fiscal fascination in the applicant or perhaps a shareholder from the applicant.”
Company Day documented Earlier that the majority of the businesses shortlisted with the tender are politically uncovered.
The Gold Rush consortium is led by high-profile businessperson Sandile Zungu, who challenged with the ANC KwaZulu-Natal chair situation in 2022 prior to dropping out following he didn't garner ample support, the paper described.
Yet another politically related bidder is HCI, that's vast majority-owned via the South African Clothes and Textile Staff’ Union, an affiliate of Cosatu, and that is in alliance Using the ANC. CEO Johnny Copelyn donated to President Cyril Ramaphosa’s CR17 campaign for that ANC presidency.
Another shortlisted bidder, In line with Business enterprise Working day, is Thebe Investment Company, which was Launched by ANC leaders in 1992. Thebe is fifty percent-owned by Batho Batho Rely on. The have faith in has donated R60-million to your ANC considering that 2021, In line with declarations created to the electoral commission.
Ithuba, the holder of your licence, is likewise within the running, as is Umbulelo Consortium, led by Afrirent Holdings; and Giya Game titles, Based on Organization Working day.
Vivien Natasen consulted for Giya Online games on its bid. GroundUp reported in 2022 that Natasen, by way ofตรวจ สลาก his company Neo Remedies, contributed R2-million to the luxurious mansion of the then-NLC chair Aflred Nevhutanda — whilst his organization Neo Answers had a deal Using the NLC. Natasen told GroundUp At the moment that Neo Methods was “appointed in the NLC’s provide chain procedures, as and when products and services are expected”.