Announcement of recent lottery licence operator postponed - once again
Announcement of recent lottery licence operator postponed - once again
Blog Article
Parks Tau, the trade and sector minister, has postponed naming a successful bidder to run South Africa’s lottery once the tenure of present operator, Ithuba, finishes in May well following yr.
Ithuba’s licence was thanks to own expired in May 2023 but was prolonged for 2 several years by Tau’s predecessor Ebrahim Patel following a request by the then recently-appointed board of your Nationwide Lotteries Fee (NLC).
The Board, which was addressing the corruption that had overwhelmed the NLC, also encouraged Patel of representations by Ithuba that it were severely affected by the Covid pandemic. This integrated a ban on the sale of lottery tickets at the peak in the pandemic.
In terms of the extension, Ithuba had to make contributions to the NLC for distribution to very good leads to at the next level than offered for within their Preliminary licence.
New licence operators are offered 6 months to put in place infrastructure, like ticket machines countrywide, to acquire above from the past operator prior to the incumbent’s licence finishes. This newest postponement ensures that there will not be enough time to get a clean changeover and It truly is not likely that Tau will increase Ithuba’s licence once again.
The process of appointing a whole new licence operator has also been plagued by allegations of conflict of curiosity as well as other concerns.
GroundUp has acquired that the NLC has contingency programs in place to carry on funding superior results in for as much as a year In the event the lottery plus the sale of lottery tickets are suspended.
The contingency also addresses funding in the celebration of litigation by losing bidders every time a new operator is lastly introduced, which could also derail The graceful operating on the lottery.
In the event that ticket revenue are stopped, the NLC will use its reserves of R3.9-billion to continue funding qualifying organisations, a supply with familiarity with the contingency approach told GroundUp.
In his weekend statement asserting the postponement, Tau said: “Sadly, I am not ready to help make a final decision at this time. Any these final decision at the moment would in all great conscience mean that I haven't utilized my mind with owing consideration of many of the appropriate factors.”
“I have discovered matters that call for further evaluation. It could be inappropriate to reveal these issues now and their disclosure could really very well prejudice the appropriate adjudication from the awarding in the licence.”
Tau explained he was awaiting assistance on The simplest way to make sure the continuation of your lottery during the interim and the “enhancement of the programme to finalise this process”.
This, he said, needs to be performed right after session Along with the National Treasury.”
Tau also hinted within the political makeup with the consortiums bidding for your licence as A further achievable reason behind the postponement.
He stated: “I have to also make sure the proprietors and professionals with the successful applicants are, because the Act states, ‘suit and suitable people’. Also, I have to be certain that no political bash or political Business-bearer has any immediate fiscal curiosity within the applicant or a shareholder of your applicant.”
Small business Day described previously that the majority of of the companies shortlisted for that tender are politically exposed.
The Gold Rush consortium is led by significant-profile businessperson Sandile Zungu, who challenged for the ANC KwaZulu-Natal chair placement in 2022 right before dropping out right after he did not garner more than enough assistance, the paper documented.
A different politically related bidder is HCI, which is vast majority-owned through the South African Apparel and Textile Employees’ Union, an affiliate of Cosatu, which can be in alliance With all the ANC. CEO Johnny Copelyn donated to President Cyril Ramaphosa’s CR17 campaign with the ANC presidency.
Another shortlisted bidder, according to Small business Day, is Thebe Investment 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 on the ANC since 2021, In line with declarations made for the electoral commission.
Ithuba, the holder on the licence, is usually in the operating, 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, throughตรวจ หวย ผล สลากกินแบ่ง รัฐบาล งวด his enterprise Neo Options, contributed R2-million in direction of the posh mansion on the then-NLC chair Aflred Nevhutanda — when his corporation Neo Methods experienced a contract Using the NLC. Natasen informed GroundUp At the moment that Neo Remedies was “appointed throughout the NLC’s supply chain procedures, as and when companies are needed”.