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 market minister, has postponed naming a successful bidder to run South Africa’s lottery when the tenure of present operator, Ithuba, finishes in May possibly up coming calendar year.
Ithuba’s licence was owing to possess expired in May well 2023 but was extended for two decades by Tau’s predecessor Ebrahim Patel after a request by the then recently-appointed board with the Countrywide Lotteries Commission (NLC).
The Board, which was handling the corruption that experienced confused the NLC, also encouraged Patel of representations by Ithuba that it were seriously afflicted by the Covid pandemic. This integrated a ban within the sale of lottery tickets at the height from the pandemic.
Regarding the extension, Ithuba had to produce contributions for the NLC for distribution to great leads to at the next amount than presented for within their Original licence.
New licence operators are presented 6 months to create infrastructure, such as ticket devices countrywide, to consider about in the preceding operator ahead of the incumbent’s licence ends. This most recent postponement ensures that there won't be ample time to get a easy transition and It truly is not likely that Tau will prolong Ithuba’s licence yet again.
The whole process of appointing a completely new licence operator has also been stricken by allegations of conflict of desire as well as other issues.
GroundUp has learned which the NLC has contingency strategies in place to carry on funding very good triggers for up to a 12 months In the event the lottery and the sale of lottery tickets are suspended.
The contingency also addresses funding in the function of litigation by getting rid of bidders each time a new operator is at last announced, which could also derail the smooth managing of your lottery.
In case ticket revenue are stopped, the NLC will use its reserves of R3.9-billion to continue funding qualifying organisations, a source with knowledge of the contingency program advised GroundUp.
In his weekend statement announcing the postponement, Tau said: “Sadly, I'm not able to generate a ultimate selection at this stage. Any these types of conclusion at the moment would in all great conscience necessarily mean that I haven't applied my head with due thought of all of the suitable elements.”
“I have discovered issues that demand even further analysis. It would be inappropriate to disclose these concerns now as well as their disclosure could incredibly well prejudice the proper adjudication from the awarding in the licence.”
Tau explained he was awaiting tips on The simplest way to make sure the continuation of your lottery during the interim plus the “progress of a programme to finalise this method”.
This, he explained, should be done immediately after consultation While using the Nationwide Treasury.”
Tau also hinted within the political makeup on the consortiums bidding for the licence as One more possible cause of the postponement.
He claimed: “I need to also make sure that the homeowners and supervisors with the successful applicants are, because the Act states, ‘suit and appropriate individuals’. Furthermore, I must make sure that no political celebration or political Workplace-bearer has any immediate money curiosity within the applicant or a shareholder with the applicant.”
Enterprise Working day noted Beforehand that almost all of the businesses shortlisted for your tender are politically exposed.
The Gold Hurry consortium is led by high-profile businessperson Sandile Zungu, who challenged for your ANC KwaZulu-Natal chair situation in 2022 before dropping out right after he did not garner plenty of aid, the paper reported.
An additional politically connected bidder is HCI, which can be bulk-owned with the South African Apparel and Textile Employees’ Union, an affiliate of Cosatu, that is in alliance Using the ANC. CEO Johnny Copelyn donated to President Cyril Ramaphosa’s CR17 marketing campaign to the ANC presidency.
An additional shortlisted bidder, according to Business enterprise Day, is Thebe Financial investment Corporation, which was Launched by ANC leaders in 1992. Thebe is half-owned by Batho Batho Have faith in. The trust has donated R60-million for the ANC considering the fact that 2021, In accordance with declarations designed to the electoral Fee.
Ithuba, the holder of the licence, can also be inside the managing, as is Umbulelo Consortium, led by Afrirent Holdings; and Giya Online games, In line with Small business Day.
Vivien Natasen consulted for Giya Games on its bid. GroundUp claimed in 2022 that Natasen, as a result ofตรวจ หวย ลาว his business Neo Answers, contributed R2-million toward the posh mansion on the then-NLC chair Aflred Nevhutanda — even though his firm Neo Remedies had a deal While using the NLC. Natasen explained to GroundUp at that time that Neo Options was “appointed in the NLC’s offer chain processes, as and when expert services are essential”.