Announcement of recent lottery licence operator postponed - yet again
Announcement of recent lottery licence operator postponed - yet again
Blog Article
Parks Tau, the trade and sector minister, has postponed naming a winning bidder to operate South Africa’s lottery once the tenure of latest operator, Ithuba, finishes in Might upcoming 12 months.
Ithuba’s licence was owing to acquire expired in May perhaps 2023 but was prolonged for two a long time by Tau’s predecessor Ebrahim Patel after a ask for because of the then recently-appointed board from the Countrywide Lotteries Commission (NLC).
The Board, which was managing the corruption that experienced overcome the NLC, also encouraged Patel of representations by Ithuba that it had been seriously affected because of the Covid pandemic. This incorporated a ban on the sale of lottery tickets at the height with the pandemic.
With regards to the extension, Ithuba experienced to make contributions for the NLC for distribution to superior leads to at a better amount than delivered for of their Original licence.
New licence operators are given 6 months to build infrastructure, including ticket equipment countrywide, to acquire about through the preceding operator before the incumbent’s licence finishes. This most up-to-date postponement implies that there won't be adequate time to get a clean transition and It is actually unlikely that Tau will prolong Ithuba’s licence once more.
The whole process of appointing a fresh licence operator has also been stricken by allegations of conflict of interest and other concerns.
GroundUp has figured out which the NLC has contingency plans in place to continue funding great brings about for as many as a 12 months If your lottery as well as sale of lottery tickets are suspended.
The contingency also handles funding during the celebration of litigation by shedding bidders each time a new operator is lastly declared, which could also derail The sleek working of 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 supply with knowledge of the contingency system told GroundUp.
In his weekend statement asserting the postponement, Tau said: “However, I'm not ready to create a ultimate conclusion at this time. Any this kind of determination right now would in all superior conscience mean which i haven't utilized my brain with because of consideration of all of the related factors.”
“I've determined matters that require further more evaluation. It would be inappropriate to reveal these concerns now as well as their disclosure could quite nicely prejudice the appropriate adjudication in the awarding of your licence.”
Tau mentioned he was awaiting information on The ultimate way to ensure the continuation in the lottery during the interim and also the “growth of a programme to finalise this process”.
This, he explained, need to be done following consultation Using the National Treasury.”
Tau also hinted at the political make-up on the consortiums bidding to the licence as Yet another feasible reason for the postponement.
He reported: “I have to also make sure that the entrepreneurs and supervisors of the thriving applicants are, because the Act states, ‘in good shape and appropriate folks’. Furthermore, I have to ensure that no political get together or political Business-bearer has any immediate financial interest inside the applicant or possibly a shareholder with the applicant.”
Business enterprise Working day described Earlier that a lot of of the businesses shortlisted to the tender are politically exposed.
The Gold Hurry consortium is led by substantial-profile businessperson Sandile Zungu, who challenged for your ANC KwaZulu-Natal chair position in 2022 right before dropping out immediately after he failed to garner more than enough assist, the paper reported.
A different politically connected bidder is HCI, that's vast majority-owned because of the South African Clothing and Textile Employees’ 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 your ANC presidency.
One more shortlisted bidder, In keeping with Business Working day, is Thebe Investment Company, which was Launched by ANC leaders in 1992. Thebe is fifty percent-owned by Batho Batho Have confidence in. The have confidence in has donated R60-million towards the ANC because 2021, according to declarations built on the electoral Fee.
Ithuba, the holder on the licence, can also be during the working, as is Umbulelo Consortium, led by Afrirent Holdings; and Giya Game titles, In accordance with Business enterprise Day.
Vivien Natasen consulted for Giya Video games on its bid. GroundUp documented in 2022 that Natasen, as a result ofตา ว จ หวย his business Neo Methods, contributed R2-million in direction of the luxurious mansion from the then-NLC chair Aflred Nevhutanda — when his business Neo Remedies experienced a deal Using the NLC. Natasen advised GroundUp At the moment that Neo Alternatives was “appointed through the NLC’s supply chain procedures, as and when solutions are necessary”.
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