Announcement of latest lottery licence operator postponed - yet again
Announcement of latest lottery licence operator postponed - yet again
Blog Article
Parks Tau, the trade and sector minister, has postponed naming a winning bidder to run South Africa’s lottery if the tenure of latest operator, Ithuba, ends in Could subsequent year.
Ithuba’s licence was owing to possess expired in May perhaps 2023 but was extended for 2 many years by Tau’s predecessor Ebrahim Patel following a ask for with the then recently-appointed board of the Nationwide Lotteries Fee (NLC).
The Board, which was working with the corruption that experienced confused the NLC, also encouraged Patel of representations by Ithuba that it were seriously affected from the Covid pandemic. This provided a ban to the sale of lottery tickets at the height on the pandemic.
Concerning the extension, Ithuba experienced for making contributions to your NLC for distribution to very good brings about at a greater price than provided for of their Preliminary licence.
New licence operators are given six months to set up infrastructure, which include ticket machines countrywide, to acquire more than with the prior operator prior to the incumbent’s licence ends. This newest postponement signifies that there will not be sufficient time for your smooth transition and It's unlikely that Tau will lengthen Ithuba’s licence all over again.
The entire process of appointing a different licence operator has also been plagued by allegations of conflict of interest and other problems.
GroundUp has uncovered which the NLC has contingency designs set up to continue funding great causes for nearly a 12 months In the event the lottery as well as the sale of lottery tickets are suspended.
The contingency also handles funding inside the party of litigation by dropping bidders any time a new operator is ultimately declared, which could also derail The graceful operating with the lottery.
In the event that ticket revenue are stopped, the NLC will use its reserves of R3.nine-billion to continue funding qualifying organisations, a source with familiarity with the contingency strategy advised GroundUp.
In his weekend statement announcing the postponement, Tau mentioned: “However, I am not in a position to make a final decision at this time. Any these determination at the moment would in all good conscience necessarily mean that I haven't applied my intellect with because of thing to consider of every one of the related things.”
“I have determined issues that need even further analysis. It would be inappropriate to disclose these difficulties now as well as their disclosure could very effectively prejudice the right adjudication of your awarding from the licence.”
Tau explained he was awaiting information on the best way to ensure the continuation of your lottery in the interim and also the “advancement of the programme to finalise this method”.
This, he mentioned, has to be completed soon after consultation Along with the Nationwide Treasury.”
Tau also hinted at the political makeup of the consortiums bidding for that licence as An additional probable cause of the postponement.
He reported: “I must also be certain that the entrepreneurs and managers on the thriving applicants are, as the Act states, ‘match and appropriate individuals’. Furthermore, I have to be certain that no political occasion or political Business-bearer has any immediate economic curiosity within the applicant or a shareholder of your applicant.”
Small business Day claimed Formerly that the majority of the businesses shortlisted for your tender are politically uncovered.
The Gold Hurry consortium is led by large-profile businessperson Sandile Zungu, who challenged for the ANC KwaZulu-Natal chair placement in 2022 right before dropping out soon after he didn't garner enough help, the paper described.
A further politically related bidder is HCI, that is bulk-owned because of the South African Outfits and Textile Personnel’ Union, an affiliate of Cosatu, which happens to be in alliance with the ANC. CEO Johnny Copelyn donated to President Cyril Ramaphosa’s CR17 campaign for that ANC presidency.
A different shortlisted bidder, In keeping with Small business Day, is Thebe Financial investment Corporation, which was Established by ANC leaders in 1992. Thebe is fifty percent-owned by Batho Batho Belief. The have confidence in has donated R60-million towards the ANC due to the fact 2021, Based on declarations manufactured into the electoral Fee.
Ithuba, the holder from the licence, can be during the functioning, as is Umbulelo Consortium, led by Afrirent Holdings; and Giya Game titles, according to Company Day.
Vivien Natasen consulted for Giya Games on its bid. GroundUp claimed in 2022 that Natasen, throughruay his company Neo Options, contributed R2-million in direction of the luxury mansion from the then-NLC chair Aflred Nevhutanda — although his organization Neo Options experienced a deal Along 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 required”.