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 industry minister, has postponed naming a profitable bidder to run South Africa’s lottery once the tenure of latest operator, Ithuba, finishes in May up coming yr.
Ithuba’s licence was because of to get expired in Could 2023 but was extended for 2 decades by Tau’s predecessor Ebrahim Patel following a request through the then newly-appointed board with the Nationwide Lotteries Fee (NLC).
The Board, which was addressing the corruption that had confused the NLC, also suggested Patel of representations by Ithuba that it were severely influenced from the Covid pandemic. This involved a ban within the sale of lottery tickets at the peak of the pandemic.
With regard to the extension, Ithuba experienced to produce contributions to your NLC for distribution to good triggers at an increased level than provided for in their initial licence.
New licence operators are given 6 months to arrange infrastructure, including ticket equipment countrywide, to choose about with the preceding operator before the incumbent’s licence finishes. This most up-to-date postponement implies that there won't be adequate time to get a clean transition and It can be unlikely that Tau will prolong Ithuba’s licence again.
The entire process of appointing a brand new licence operator has also been tormented by allegations of conflict of interest together with other problems.
GroundUp has uncovered the NLC has contingency options set up to carry on funding superior 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 any time a new operator is eventually introduced, which could also derail The graceful jogging in the lottery.
In case ticket profits are stopped, the NLC will use its reserves of R3.9-billion to continue funding qualifying organisations, a resource with understanding of the contingency system informed GroundUp.
In his weekend statement asserting the postponement, Tau stated: “Sad to say, I'm not ready to create a ultimate conclusion at this time. Any such selection at the moment would in all very good conscience signify which i have not applied my mind with due thing to consider of many of the applicable things.”
“I have identified issues that call for more analysis. It could be inappropriate to disclose these difficulties now and their disclosure could pretty properly prejudice the proper adjudication on the awarding of the licence.”
Tau explained he was awaiting advice on the best way to ensure the continuation on the lottery during the interim and also the “growth of the programme to finalise this method”.
This, he claimed, needs to be done following consultation Using the National Treasury.”
Tau also hinted within the political make-up on the consortiums bidding for your licence as An additional possible reason behind the postponement.
He claimed: “I must also ensure that the house owners and managers with the productive applicants are, given that the Act states, ‘suit and good individuals’. Also, I need to make certain that no political occasion or political Workplace-bearer has any direct economic curiosity while in the applicant or maybe a shareholder of your applicant.”
Business Working day described Earlier that a lot of of the companies shortlisted for your tender are politically uncovered.
The Gold Rush consortium is led by higher-profile businessperson Sandile Zungu, who challenged for the ANC KwaZulu-Natal chair situation in 2022 ahead of dropping out right after he didn't garner adequate support, the paper described.
Another politically linked bidder is HCI, which happens to be greater part-owned via the South African Clothes and Textile Staff’ Union, an affiliate of Cosatu, which happens to be in alliance Using the ANC. CEO Johnny Copelyn donated to President Cyril Ramaphosa’s CR17 campaign for your ANC presidency.
One more shortlisted bidder, As outlined by Business enterprise Working day, is Thebe Financial commitment Company, which was Started by ANC leaders in 1992. Thebe is half-owned by Batho Batho Trust. The trust has donated R60-million to your ANC due to the fact 2021, In line with declarations produced into the electoral commission.
Ithuba, the holder of your licence, is additionally in the managing, as is Umbulelo Consortium, led by Afrirent Holdings; and Giya Game titles, In accordance with Business enterprise Day.
Vivien Natasen consulted for Giya Games on its bid. GroundUp documented in 2022 that Natasen, byltpbet his corporation Neo Options, contributed R2-million to the luxury mansion in the then-NLC chair Aflred Nevhutanda — though his business Neo Remedies experienced a agreement with the NLC. Natasen informed GroundUp at that time that Neo Options was “appointed throughout the NLC’s provide chain processes, as and when providers are necessary”.
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