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 sector minister, has postponed naming a successful bidder to operate South Africa’s lottery once the tenure of present operator, Ithuba, finishes in May well following yr.
Ithuba’s licence was thanks to acquire expired in Could 2023 but was prolonged for 2 several years by Tau’s predecessor Ebrahim Patel following a request via the then newly-appointed board on the Countrywide Lotteries Fee (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 from the Covid pandemic. This provided a ban to the sale of lottery tickets at the peak with the pandemic.
In terms of the extension, Ithuba experienced to help make contributions to the NLC for distribution to good causes at the next amount than presented for within their initial licence.
New licence operators are supplied six months to build infrastructure, like ticket equipment countrywide, to just take over with the prior operator prior to the incumbent’s licence finishes. This newest postponement signifies that there won't be ample time to get a easy transition and It can be not likely that Tau will increase Ithuba’s licence all over again.
The process of appointing a brand new licence operator has also been affected by allegations of conflict of curiosity together with other difficulties.
GroundUp has figured out the NLC has contingency programs in place to carry on funding superior leads to for approximately a calendar year In case the lottery plus the sale of lottery tickets are suspended.
The contingency also addresses funding within the function of litigation by shedding bidders each time a new operator is lastly declared, which could also derail the smooth working from the lottery.
Just in case ticket 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 asserting the postponement, Tau said: “Regrettably, I am not in a position to create a ultimate conclusion at this time. Any this kind of selection at this time would in all good conscience imply which i have not used my brain with due thing to consider of each of the relevant components.”
“I have discovered matters that require further more evaluation. It will be inappropriate to disclose these concerns now as well as their disclosure could pretty well prejudice the correct adjudication in the awarding on the licence.”
Tau claimed he was awaiting information on The easiest way to make sure the continuation on the lottery while in the interim along with the “advancement of a programme to finalise this method”.
This, he mentioned, should be done just after consultation Using the Countrywide Treasury.”
Tau also hinted in the political make-up of the consortiums bidding to the licence as another doable reason for the postponement.
He mentioned: “I need to also make sure that the homeowners and supervisors with the successful applicants are, because the Act states, ‘suit and suitable individuals’. Moreover, I have to make certain that no political social gathering or political Business office-bearer has any direct financial desire while in the applicant or even a shareholder of the applicant.”
Business enterprise Day claimed Formerly that the majority of the businesses shortlisted for the tender are politically exposed.
The Gold Rush consortium is led by superior-profile businessperson Sandile Zungu, who challenged for your ANC KwaZulu-Natal chair situation in 2022 before dropping out soon after he did not garner more than enough assistance, the paper noted.
One more politically linked bidder is HCI, and that is the vast majority-owned by the South African Clothing and Textile Personnel’ Union, an affiliate of Cosatu, which happens to be in alliance While using the ANC. CEO Johnny Copelyn donated to President Cyril Ramaphosa’s CR17 marketing campaign for your ANC presidency.
Another shortlisted bidder, according to Small business Day, is Thebe 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 to your electoral Fee.
Ithuba, the holder of your licence, can also be inside the managing, as is Umbulelo Consortium, led by Afrirent Holdings; and Giya Online games, As outlined by Small business Working day.
Vivien Natasen consulted for Giya Video games on its bid. GroundUp reported in 2022 that Natasen, throughหวย ออก his organization Neo Alternatives, contributed R2-million to the luxurious mansion of your then-NLC chair Aflred Nevhutanda — while his business Neo Solutions experienced a agreement Along with the NLC. Natasen advised GroundUp at that time that Neo Solutions was “appointed in the NLC’s provide chain procedures, as and when expert services are essential”.