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 marketplace minister, has postponed naming a successful bidder to operate South Africa’s lottery once the tenure of present operator, Ithuba, finishes in Might following 12 months.
Ithuba’s licence was owing to acquire expired in May perhaps 2023 but was prolonged for two yrs by Tau’s predecessor Ebrahim Patel after a request from the then freshly-appointed board of your Nationwide Lotteries Commission (NLC).
The Board, which was dealing with the corruption that experienced overwhelmed the NLC, also encouraged Patel of representations by Ithuba that it had been seriously affected because of the Covid pandemic. This provided a ban on the sale of lottery tickets at the height of your pandemic.
With regard to the extension, Ithuba experienced to produce contributions to your NLC for distribution to good triggers at an increased level than supplied for within their Preliminary licence.
New licence operators are presented six months to put in place infrastructure, which include ticket devices countrywide, to just take in excess of through the preceding operator before the incumbent’s licence finishes. This most up-to-date postponement signifies that there will not be ample time for the smooth changeover and It's not likely that Tau will lengthen Ithuba’s licence all over again.
The entire process of appointing a brand new licence operator has also been tormented by allegations of conflict of interest and various concerns.
GroundUp has figured out which the NLC has contingency ideas in position to continue funding very good results in for up to a year In the event the lottery plus the sale of lottery tickets are suspended.
The contingency also addresses funding while in the function of litigation by dropping bidders each time a new operator is ultimately announced, which could also derail The graceful managing in the lottery.
In case ticket gross sales are stopped, the NLC will use its reserves of R3.9-billion to carry on funding qualifying organisations, a source with expertise in the contingency program explained to GroundUp.
In his weekend statement saying the postponement, Tau said: “However, I'm not in a position to produce a remaining choice at this stage. Any these decision at this time would in all excellent conscience signify which i have not applied my thoughts with because of consideration of each of the pertinent aspects.”
“I have discovered issues that call for even more evaluation. It will be inappropriate to disclose these issues now as well as their disclosure could really well prejudice the right adjudication in the awarding of your licence.”
Tau explained he was awaiting guidance on The simplest way to make sure the continuation of your lottery inside the interim as well as “improvement of a programme to finalise this process”.
This, he explained, needs to be done right after consultation Together with the Nationwide Treasury.”
Tau also hinted on the political makeup from the consortiums bidding for the licence as An additional possible reason behind the postponement.
He claimed: “I have to also make sure that the entrepreneurs and supervisors from the thriving applicants are, since the Act states, ‘fit and right persons’. Also, I need to make certain that no political bash or political Place of work-bearer has any direct money desire within the applicant or possibly a shareholder with the applicant.”
Business enterprise Working day claimed Beforehand that most of the businesses shortlisted for that tender are politically exposed.
The Gold Rush consortium is led by high-profile businessperson Sandile Zungu, who challenged with the ANC KwaZulu-Natal chair situation in 2022 ahead of dropping out right after he didn't garner plenty of help, the paper claimed.
One more politically connected bidder is HCI, and that is vast majority-owned via the South African Clothes and Textile Staff’ Union, an affiliate of Cosatu, which is in alliance With all the ANC. CEO Johnny Copelyn donated to President Cyril Ramaphosa’s CR17 marketing campaign for that ANC presidency.
Another shortlisted bidder, In accordance with Organization Day, is Thebe Financial commitment Company, which was Started by ANC leaders in 1992. Thebe is fifty percent-owned by Batho Batho Have confidence in. The believe in has donated R60-million towards the ANC because 2021, according to declarations built on the electoral commission.
Ithuba, the holder with the licence, is additionally within the jogging, as is Umbulelo Consortium, led by Afrirent Holdings; and Giya Video games, In keeping with Enterprise Working day.
Vivien Natasen consulted for Giya Game titles on its bid. GroundUp noted in 2022 that Natasen, by way ofหวย หุ้น his firm Neo Options, contributed R2-million to the luxury mansion with the then-NLC chair Aflred Nevhutanda — whilst his firm Neo Solutions had a contract Together with the NLC. Natasen explained to GroundUp At the moment that Neo Solutions was “appointed with the NLC’s provide chain processes, as and when companies are essential”.
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