Announcement of recent lottery licence operator postponed - again
Announcement of recent lottery licence operator postponed - again
Blog Article
Parks Tau, the trade and market minister, has postponed naming a successful bidder to operate South Africa’s lottery if the tenure of latest operator, Ithuba, ends in May well upcoming yr.
Ithuba’s licence was because of to possess expired in Might 2023 but was extended for 2 a long time by Tau’s predecessor Ebrahim Patel after a request from the then recently-appointed board of your National Lotteries Commission (NLC).
The Board, which was dealing with the corruption that had overcome the NLC, also recommended Patel of representations by Ithuba that it were seriously affected with the Covid pandemic. This bundled a ban on the sale of lottery tickets at the peak of your pandemic.
Regarding the extension, Ithuba had to produce contributions for the NLC for distribution to excellent leads to at a higher rate than provided for of their Preliminary licence.
New licence operators are offered 6 months to setup infrastructure, including ticket devices countrywide, to take in excess of in the past operator before the incumbent’s licence ends. This latest postponement ensures that there won't be sufficient time for the clean changeover and It is unlikely that Tau will extend Ithuba’s licence once more.
The entire process of appointing a different licence operator has also been stricken by allegations of conflict of desire along with other concerns.
GroundUp has realized that the NLC has contingency plans set up to carry on funding very good brings about for approximately a year Should the lottery plus the sale of lottery tickets are suspended.
The contingency also addresses funding in the function of litigation by getting rid of bidders each time a new operator is at last announced, which could also derail The sleek jogging of the lottery.
In the event ticket income are stopped, the NLC will use its reserves of R3.nine-billion to carry on funding qualifying organisations, a supply with familiarity with the contingency system instructed GroundUp.
In his weekend assertion saying the postponement, Tau explained: “However, I am not in a position to make a remaining conclusion at this time. Any this sort of choice presently would in all fantastic conscience suggest which i have not used my thoughts with owing consideration of many of the pertinent things.”
“I have determined issues that require more analysis. It will be inappropriate to reveal these problems now and their disclosure could quite perfectly prejudice the proper adjudication from the awarding in the licence.”
Tau explained he was awaiting information on The easiest method to ensure the continuation from the lottery within the interim and the “development of the programme to finalise this process”.
This, he said, need to be accomplished following session With all the Countrywide Treasury.”
Tau also hinted on the political make-up from the consortiums bidding for that licence as An additional attainable reason for the postponement.
He mentioned: “I have to also ensure that the proprietors and professionals on the prosperous applicants are, given that the Act states, ‘fit and proper persons’. In addition, I need to ensure that no political bash or political Business-bearer has any immediate monetary desire from the applicant or even a shareholder of the applicant.”
Business enterprise Day claimed Formerly that most of the companies shortlisted for that tender are politically uncovered.
The Gold Rush consortium is led by large-profile businessperson Sandile Zungu, who challenged for that ANC KwaZulu-Natal chair position in 2022 just before dropping out just after he didn't garner enough help, the paper documented.
One more politically linked bidder is HCI, and that is the vast majority-owned via the South African Outfits and Textile Staff’ Union, an affiliate of Cosatu, that's in alliance Together with the ANC. CEO Johnny Copelyn donated to President Cyril Ramaphosa’s CR17 campaign with the ANC presidency.
A different shortlisted bidder, In line with Company Working day, is Thebe Investment decision Company, which was founded by ANC leaders in 1992. Thebe is 50 percent-owned by Batho Batho Believe in. The belief 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, is also inside the working, as is Umbulelo Consortium, led by Afrirent Holdings; and Giya Video games, In line with Organization Day.
Vivien Natasen consulted for Giya Games on its bid. GroundUp reported in 2022 that Natasen, as a result ofตรวจ his company Neo Options, contributed R2-million in direction of the posh mansion in the then-NLC chair Aflred Nevhutanda — although his organization Neo Options experienced a agreement Together with the NLC. Natasen informed GroundUp at that time that Neo Alternatives was “appointed throughout the NLC’s supply chain procedures, as and when companies are required”.