Announcement of new lottery licence operator postponed - again
Announcement of new lottery licence operator postponed - again
Blog Article
Parks Tau, the trade and field minister, has postponed naming a winning bidder to operate South Africa’s lottery in the event the tenure of present operator, Ithuba, ends in May possibly upcoming 12 months.
Ithuba’s licence was owing to acquire expired in May well 2023 but was prolonged for two many years by Tau’s predecessor Ebrahim Patel following a ask for with the then newly-appointed board of the Countrywide Lotteries Commission (NLC).
The Board, which was coping with the corruption that experienced overwhelmed the NLC, also recommended Patel of representations by Ithuba that it had been severely afflicted with the Covid pandemic. This integrated a ban to the sale of lottery tickets at the height in the pandemic.
In terms of the extension, Ithuba had for making contributions to the NLC for distribution to excellent will cause at the next rate than offered for within their Preliminary licence.
New licence operators are presented six months to create infrastructure, like ticket machines countrywide, to consider more than from the former operator ahead of the incumbent’s licence ends. This latest postponement ensures that there will not be ample time for the smooth changeover and It's not likely that Tau will extend Ithuba’s licence once again.
The process of appointing a whole new licence operator has also been plagued by allegations of conflict of curiosity and other concerns.
GroundUp has figured out which the NLC has contingency plans in place to carry on funding good leads to for around a yr In the event the lottery plus the sale of lottery tickets are suspended.
The contingency also addresses funding inside the occasion of litigation by losing bidders when a new operator is at last introduced, which could also derail the smooth functioning on 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 resource with understanding of the contingency approach advised GroundUp.
In his weekend assertion announcing the postponement, Tau mentioned: “Regretably, I am not in a position to generate a remaining choice at this stage. Any these kinds of final decision presently would in all good conscience imply which i haven't utilized my brain with because of consideration of each of the related elements.”
“I've determined matters that involve further more evaluation. It will be inappropriate to disclose these problems now as well as their disclosure could extremely perfectly prejudice the correct adjudication of the awarding on the licence.”
Tau said he was awaiting tips on The obvious way to make sure the continuation of your lottery inside the interim plus the “development of a programme to finalise this method”.
This, he said, should be completed soon after consultation Together with the Nationwide Treasury.”
Tau also hinted on the political makeup of your consortiums bidding with the licence as A different attainable cause of the postponement.
He said: “I need to also be certain that the owners and supervisors from the thriving applicants are, since the Act states, ‘fit and suitable folks’. Additionally, I have to ensure that no political get together or political Office environment-bearer has any immediate economical interest within the applicant or possibly a shareholder on the applicant.”
Business enterprise Working day documented Formerly that many of the companies shortlisted for the tender are politically uncovered.
The Gold Rush consortium is led by higher-profile businessperson Sandile Zungu, who challenged with the ANC KwaZulu-Natal chair situation in 2022 just before dropping out following he didn't garner adequate support, the paper documented.
An additional politically linked bidder is HCI, which is greater part-owned by the South African Apparel 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 campaign to the ANC presidency.
A different shortlisted bidder, In keeping with Company Working day, is Thebe Investment Company, which was Launched by ANC leaders in 1992. Thebe is fifty percent-owned by Batho Batho Have confidence in. The have confidence in has donated R60-million towards the ANC since 2021, In keeping with declarations designed for the electoral Fee.
Ithuba, the holder from the licence, is also while in the running, as is Umbulelo Consortium, led by Afrirent Holdings; and Giya Video games, In keeping with Enterprise Working day.
Vivien Natasen consulted for Giya Online games on its bid. GroundUp claimed in 2022 that Natasen, viaหวย ไทยรัฐ his corporation Neo Answers, contributed R2-million in the direction of the posh mansion of the then-NLC chair Aflred Nevhutanda — although his enterprise Neo Options had a agreement Along with the NLC. Natasen told GroundUp at that time that Neo Options was “appointed throughout the NLC’s provide chain processes, as and when companies are essential”.
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