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 business minister, has postponed naming a successful bidder to operate South Africa’s lottery when the tenure of present operator, Ithuba, ends in Might subsequent calendar year.
Ithuba’s licence was owing to get expired in May 2023 but was prolonged for 2 yrs by Tau’s predecessor Ebrahim Patel after a request from the then freshly-appointed board in the Nationwide Lotteries Commission (NLC).
The Board, which was coping with the corruption that experienced confused the NLC, also suggested Patel of representations by Ithuba that it were seriously affected because of the Covid pandemic. This incorporated a ban on the sale of lottery tickets at the height of your pandemic.
In terms of the extension, Ithuba had to help make contributions towards the NLC for distribution to very good causes at a greater level than supplied for in their Preliminary licence.
New licence operators are provided six months to put in place infrastructure, together with ticket machines countrywide, to consider above with the past operator ahead of the incumbent’s licence finishes. This most current postponement implies that there won't be adequate time for the sleek transition and It is unlikely that Tau will prolong Ithuba’s licence all over again.
The entire process of appointing a fresh licence operator has also been stricken by allegations of conflict of curiosity and other concerns.
GroundUp has uncovered which the NLC has contingency ideas in place to carry on funding fantastic will cause for as many as a yr In the event the lottery plus the sale of lottery tickets are suspended.
The contingency also handles funding during the event of litigation by getting rid of bidders every time a new operator is last but not least announced, which could also derail The sleek managing on the lottery.
In the event ticket 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 informed GroundUp.
In his weekend assertion asserting the postponement, Tau mentioned: “Regretably, I am not in a position to produce a closing decision at this stage. Any these decision at the moment would in all fantastic conscience necessarily mean which i haven't utilized my thoughts with due consideration of each of the suitable aspects.”
“I have discovered matters that need more analysis. It could be inappropriate to disclose these troubles now and their disclosure could pretty properly prejudice the proper adjudication with the awarding in the licence.”
Tau stated he was awaiting tips on The ultimate way to make sure the continuation on the lottery during the interim as well as the “enhancement of a programme to finalise this process”.
This, he stated, should be carried out right after consultation Along with the Nationwide Treasury.”
Tau also hinted at the political make-up with the consortiums bidding for that licence as A different probable reason behind the postponement.
He said: “I need to also be sure that the proprietors and administrators from the prosperous applicants are, because the Act states, ‘in shape and proper individuals’. Also, I must be sure that no political party or political Place of work-bearer has any direct economic fascination from the applicant or a shareholder from the applicant.”
Enterprise Day documented previously that the majority of the businesses shortlisted for that tender are politically exposed.
The Gold Hurry consortium is led by superior-profile businessperson Sandile Zungu, who challenged for that ANC KwaZulu-Natal chair placement in 2022 ahead of dropping out soon after he failed to garner ample help, the paper claimed.
Yet another politically linked bidder is HCI, which is the greater part-owned by the South African Apparel and Textile Personnel’ Union, an affiliate of Cosatu, which can be in alliance Along with the ANC. CEO Johnny Copelyn donated to President Cyril Ramaphosa’s CR17 marketing campaign to the ANC presidency.
A further shortlisted bidder, In keeping with Business Working day, is Thebe Expenditure Corporation, which was Established by ANC leaders in 1992. Thebe is 50 percent-owned by Batho Batho Have faith in. The have faith in has donated R60-million to your ANC due to the fact 2021, As outlined by declarations created to the electoral commission.
Ithuba, the holder in the licence, is usually within the managing, as is Umbulelo Consortium, led by Afrirent Holdings; and Giya Online games, In keeping with Company Day.
Vivien Natasen consulted for Giya Games on its bid. GroundUp noted in 2022 that Natasen, viacat888 his business Neo Answers, contributed R2-million toward the posh mansion on the then-NLC chair Aflred Nevhutanda — when his corporation Neo Alternatives had a contract with the NLC. Natasen told GroundUp At the moment that Neo Answers was “appointed with the NLC’s source chain processes, as and when solutions are required”.