Announcement of new lottery licence operator postponed - again
Announcement of new lottery licence operator postponed - again
Blog Article
Parks Tau, the trade and market minister, has postponed naming a successful bidder to run South Africa’s lottery if the tenure of present-day operator, Ithuba, ends in Could up coming 12 months.
Ithuba’s licence was thanks to possess expired in Might 2023 but was prolonged for two several years by Tau’s predecessor Ebrahim Patel after a request because of the then recently-appointed board from the Countrywide Lotteries Commission (NLC).
The Board, which was managing the corruption that experienced overwhelmed the NLC, also advised Patel of representations by Ithuba that it had been seriously affected by the Covid pandemic. This provided a ban around the sale of lottery tickets at the height with the pandemic.
Regarding the extension, Ithuba experienced to create contributions for the NLC for distribution to fantastic results in at a greater amount than supplied for in their First licence.
New licence operators are presented six months to setup infrastructure, such as ticket equipment countrywide, to acquire in excess of from your previous operator prior to the incumbent’s licence finishes. This latest postponement ensures that there won't be adequate time for just a easy changeover and It really is not likely that Tau will prolong Ithuba’s licence again.
The whole process of appointing a different licence operator has also been suffering from allegations of conflict of desire and other challenges.
GroundUp has realized which the NLC has contingency programs set up to carry on funding great will cause for nearly a calendar year Should the lottery and also the sale of lottery tickets are suspended.
The contingency also covers funding in the party of litigation by getting rid of bidders any time a new operator is last but not least announced, which could also derail the smooth operating with the lottery.
In the event ticket gross sales are stopped, the NLC will use its reserves of R3.9-billion to carry on funding qualifying organisations, a source with familiarity with the contingency strategy explained to GroundUp.
In his weekend statement saying the postponement, Tau reported: “Sadly, I'm not ready to produce a last conclusion at this time. Any this kind of choice at this time would in all good conscience imply which i have not applied my thoughts with due thing to consider of every one of the related elements.”
“I've identified issues that need even further evaluation. It could be inappropriate to reveal these concerns now as well as their disclosure could very very well prejudice the proper adjudication in the awarding with the licence.”
Tau said he was awaiting tips on The obvious way to make sure the continuation of your lottery while in the interim and the “advancement of the programme to finalise this process”.
This, he claimed, must be carried out soon after consultation with the Countrywide Treasury.”
Tau also hinted on the political make-up with the consortiums bidding to the licence as An additional possible reason behind the postponement.
He claimed: “I have to also make sure that the entrepreneurs and professionals of your profitable applicants are, as being the Act states, ‘match and suitable people’. Furthermore, I need to make certain that no political occasion or political Workplace-bearer has any direct monetary interest within the applicant or perhaps a shareholder in the applicant.”
Enterprise Day claimed Earlier that a lot of of the companies shortlisted for the 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 after he did not garner sufficient aid, the paper noted.
A further politically related bidder is HCI, which can be the greater part-owned via the South African Outfits and Textile Personnel’ Union, an affiliate of Cosatu, and that is in alliance While using the ANC. CEO Johnny Copelyn donated to President Cyril Ramaphosa’s CR17 marketing campaign for your ANC presidency.
Another shortlisted bidder, In keeping with Small business Day, is Thebe Investment Corporation, which was Established by ANC leaders in 1992. Thebe is fifty percent-owned by Batho Batho Belief. The have confidence in has donated R60-million for the ANC since 2021, In line with declarations built towards the electoral commission.
Ithuba, the holder on the licence, is usually in the operating, as is Umbulelo Consortium, led by Afrirent Holdings; and Giya Games, In line with Small business Working day.
Vivien Natasen consulted for Giya Video games on its bid. GroundUp noted in 2022 that Natasen, viaเช ค หวย his company Neo Options, contributed R2-million in direction of the posh mansion in the then-NLC chair Aflred Nevhutanda — even though his firm Neo Alternatives had a contract With all the NLC. Natasen told GroundUp At the moment that Neo Remedies was “appointed with the NLC’s supply chain procedures, as and when providers are demanded”.