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 business minister, has postponed naming a successful bidder to operate South Africa’s lottery if the tenure of present 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 a long time by Tau’s predecessor Ebrahim Patel after a request through the then freshly-appointed board of your Nationwide Lotteries Commission (NLC).
The Board, which was handling the corruption that had confused the NLC, also suggested Patel of representations by Ithuba that it were seriously influenced because of the Covid pandemic. This integrated a ban over the sale of lottery tickets at the peak from the pandemic.
When it comes to the extension, Ithuba had to create contributions to your NLC for distribution to great leads to at an increased price than presented for of their Preliminary licence.
New licence operators are offered 6 months to put in place infrastructure, such as ticket devices countrywide, to take above with the preceding operator prior to the incumbent’s licence ends. This most recent postponement signifies that there will not be sufficient time for a smooth changeover and It really is unlikely that Tau will increase Ithuba’s licence all over again.
The entire process of appointing a different licence operator has also been stricken by allegations of conflict of fascination together with other challenges.
GroundUp has acquired that the NLC has contingency options in place to continue funding great brings about for as much as a yr if the lottery as well as sale of lottery tickets are suspended.
The contingency also covers funding during the function of litigation by shedding bidders any time a new operator is ultimately announced, which could also derail the smooth running from the lottery.
In the event that ticket product sales are stopped, the NLC will use its reserves of R3.9-billion to continue funding qualifying organisations, a supply with understanding of the contingency approach informed GroundUp.
In his weekend statement saying the postponement, Tau explained: “Regretably, I'm not ready to create a ultimate selection at this stage. Any this kind of choice at this time would in all good conscience necessarily mean that I haven't used my intellect with due thing to consider of many of the applicable things.”
“I have recognized issues that involve even further evaluation. It will be inappropriate to reveal these troubles now as well as their disclosure could really very well prejudice the appropriate adjudication from the awarding on the licence.”
Tau claimed he was awaiting guidance on The easiest method to make sure the continuation with the lottery in the interim as well as the “progress of the programme to finalise this process”.
This, he mentioned, have to be completed just after session While using the Countrywide Treasury.”
Tau also hinted on the political makeup of your consortiums bidding for that licence as One more attainable basis for the postponement.
He stated: “I need to also be sure that the owners and supervisors of the prosperous applicants are, since the Act states, ‘fit and suitable persons’. Moreover, I need to make sure that no political occasion or political office-bearer has any direct fiscal desire in the applicant or a shareholder from the applicant.”
Company Working day described Formerly that many of the companies shortlisted for that tender are politically exposed.
The Gold Hurry consortium is led by high-profile businessperson Sandile Zungu, who challenged for that ANC KwaZulu-Natal chair place in 2022 before dropping out soon after he didn't garner enough help, the paper described.
Another politically related bidder is HCI, which can be the greater part-owned via the South African Clothing and Textile Personnel’ Union, an affiliate of Cosatu, which can be in alliance Together with the ANC. CEO Johnny Copelyn donated to President Cyril Ramaphosa’s CR17 campaign for your ANC presidency.
An additional shortlisted bidder, according to Company Working day, is Thebe Expenditure Corporation, which was Launched by ANC leaders in 1992. Thebe is half-owned by Batho Batho Trust. The have confidence in has donated R60-million to the ANC since 2021, In line with declarations made towards the electoral commission.
Ithuba, the holder with the licence, is also inside the managing, as is Umbulelo Consortium, led by Afrirent Holdings; and Giya Online games, As outlined by Business Working day.
Vivien Natasen consulted for Giya Game titles on its bid. GroundUp described in 2022 that Natasen, byตรวจ สลาก his corporation Neo Solutions, contributed R2-million in the direction of the luxury mansion in the then-NLC chair Aflred Nevhutanda — although his firm Neo Answers had a deal While using the NLC. Natasen instructed GroundUp at that time that Neo Options was “appointed through the NLC’s offer chain processes, as and when services are demanded”.