Announcement of latest lottery licence operator postponed - yet again
Announcement of latest lottery licence operator postponed - yet again
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Parks Tau, the trade and field minister, has postponed naming a winning bidder to operate South Africa’s lottery in the event the tenure of recent operator, Ithuba, finishes in May subsequent year.
Ithuba’s licence was due to possess expired in Might 2023 but was prolonged for two many years by Tau’s predecessor Ebrahim Patel following a request by the then recently-appointed board from the Countrywide Lotteries Fee (NLC).
The Board, which was addressing the corruption that had overwhelmed the NLC, also recommended Patel of representations by Ithuba that it were severely influenced by the Covid pandemic. This provided a ban over the sale of lottery tickets at the peak of your pandemic.
When it comes to the extension, Ithuba had to make contributions to the NLC for distribution to good causes at an increased fee than offered for of their initial licence.
New licence operators are provided 6 months to build infrastructure, which include ticket devices countrywide, to just take above through the prior operator ahead of the incumbent’s licence finishes. This most current postponement means that there won't be ample time for any clean changeover and It really is not likely that Tau will extend Ithuba’s licence once again.
The whole process of appointing a brand new licence operator has also been affected by allegations of conflict of fascination and other issues.
GroundUp has learned that the NLC has contingency options set up to carry on funding excellent leads to for nearly a 12 months When the lottery and also the sale of lottery tickets are suspended.
The contingency also addresses funding within the celebration of litigation by losing bidders each time a new operator is at last announced, which could also derail The sleek jogging of the lottery.
In case 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 prepare instructed GroundUp.
In his weekend statement announcing the postponement, Tau stated: “Sadly, I am not ready for making a ultimate selection at this stage. Any these types of final decision at the moment would in all great conscience necessarily mean that I haven't applied my head with due thought of all the suitable elements.”
“I have discovered issues that demand further more analysis. It would be inappropriate to disclose these troubles now as well as their disclosure could incredibly perfectly prejudice the proper adjudication from the awarding from the licence.”
Tau mentioned he was awaiting tips on the best way to make sure the continuation with the lottery from the interim along with the “advancement of a programme to finalise this method”.
This, he stated, must be performed soon after session Together with the National Treasury.”
Tau also hinted with the political make-up from the consortiums bidding for that licence as An additional doable reason for the postponement.
He mentioned: “I have to also make sure the proprietors and professionals in the thriving applicants are, given that the Act states, ‘fit and correct persons’. In addition, I need to make sure no political bash or political Business-bearer has any immediate economic interest from the applicant or possibly a shareholder from the applicant.”
Business enterprise Day claimed Formerly that the majority of 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 sufficient help, the paper documented.
A different politically linked bidder is HCI, and that is the vast majority-owned by the South African Outfits and Textile Personnel’ Union, an affiliate of Cosatu, and that is in alliance Along 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 fifty percent-owned by Batho Batho Belief. The have faith in has donated R60-million into the ANC given that 2021, In keeping with declarations made for the electoral commission.
Ithuba, the holder in the licence, can be from the functioning, as is Umbulelo Consortium, led by Afrirent Holdings; and Giya Game titles, In keeping with Business enterprise Working day.
Vivien Natasen consulted for Giya Video games on its bid. GroundUp reported in 2022 that Natasen, throughหวย ออก his business Neo Remedies, contributed R2-million toward the posh mansion with the then-NLC chair Aflred Nevhutanda — when his corporation Neo Methods experienced a contract Using the NLC. Natasen told GroundUp At the moment that Neo Answers was “appointed through the NLC’s offer chain processes, as and when products and services are expected”.