Announcement of recent lottery licence operator postponed - again
Announcement of recent lottery licence operator postponed - again
Blog Article
Parks Tau, the trade and industry minister, has postponed naming a winning bidder to run South Africa’s lottery once the tenure of recent operator, Ithuba, ends in Might subsequent calendar year.
Ithuba’s licence was because of to have expired in May well 2023 but was extended for 2 several years by Tau’s predecessor Ebrahim Patel following a request via the then recently-appointed board of your National Lotteries Commission (NLC).
The Board, which was coping with the corruption that had confused the NLC, also encouraged Patel of representations by Ithuba that it were seriously affected through the Covid pandemic. This involved a ban over the sale of lottery tickets at the peak of the pandemic.
Regarding the extension, Ithuba had for making contributions into the NLC for distribution to fantastic will cause at an increased amount than presented for within their Original licence.
New licence operators are supplied six months to setup infrastructure, including ticket equipment countrywide, to consider around from your previous operator prior to the incumbent’s licence finishes. This most recent postponement means that there will not be enough time to get a clean changeover and It really is not likely that Tau will extend Ithuba’s licence once more.
The whole process of appointing a brand new licence operator has also been affected by allegations of conflict of curiosity and various challenges.
GroundUp has learned which the NLC has contingency designs set up to continue funding excellent triggers for around a yr When the lottery along with the sale of lottery tickets are suspended.
The contingency also covers funding in the celebration of litigation by dropping bidders any time a new operator is eventually announced, which could also derail The sleek 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 resource with understanding of the contingency system told GroundUp.
In his weekend statement announcing the postponement, Tau claimed: “Unfortunately, I am not in a position for making a remaining decision at this stage. Any this kind of selection at the moment would in all very good conscience indicate that I haven't utilized my brain with because of consideration of all the relevant components.”
“I have determined issues that call for further analysis. It will be inappropriate to disclose these troubles now as well as their disclosure could extremely properly prejudice the appropriate adjudication from the awarding from the licence.”
Tau explained he was awaiting assistance on The obvious way to make sure the continuation with the lottery from the interim as well as “development of the programme to finalise this process”.
This, he stated, should be carried out after session With all the National Treasury.”
Tau also hinted for the political makeup of your consortiums bidding to the licence as An additional doable cause of the postponement.
He claimed: “I must also be certain that the owners and professionals on the successful applicants are, because the Act states, ‘in shape and right folks’. Additionally, I must be certain that no political social gathering or political Business-bearer has any immediate fiscal curiosity within the applicant or perhaps a shareholder of the applicant.”
Business enterprise Day reported Earlier that almost all of the businesses shortlisted to the tender are politically uncovered.
The Gold Rush consortium is led by substantial-profile businessperson Sandile Zungu, who challenged for the ANC KwaZulu-Natal chair placement in 2022 before dropping out soon after he didn't garner sufficient assist, the paper claimed.
An additional politically connected bidder is HCI, which happens to be vast majority-owned with the South African Outfits and Textile Personnel’ Union, an affiliate of Cosatu, which happens to be in alliance With all the ANC. CEO Johnny Copelyn donated to President Cyril Ramaphosa’s CR17 campaign for the ANC presidency.
Another shortlisted bidder, according to Business enterprise Working day, is Thebe Investment decision Company, which was Launched by ANC leaders in 1992. Thebe is half-owned by Batho Batho Rely on. The have confidence in has donated R60-million to the ANC due to the fact 2021, Based on declarations manufactured into the electoral Fee.
Ithuba, the holder from the licence, is additionally from the functioning, as is Umbulelo Consortium, led by Afrirent Holdings; and Giya Game titles, Based on Enterprise Day.
Vivien Natasen consulted for Giya Games on its bid. GroundUp claimed in 2022 that Natasen, as a result ofหวย ลาว ย้อน หลัง his firm Neo Methods, contributed R2-million towards the luxury mansion of the then-NLC chair Aflred Nevhutanda — while his business Neo Solutions experienced a agreement Together with the NLC. Natasen advised GroundUp at that time that Neo Methods was “appointed from the NLC’s provide chain procedures, as and when companies are needed”.