Announcement of new lottery licence operator postponed - again
Announcement of new lottery licence operator postponed - again
Blog Article
Parks Tau, the trade and business minister, has postponed naming a winning bidder to run South Africa’s lottery when the tenure of present operator, Ithuba, finishes in May next 12 months.
Ithuba’s licence was because of to have expired in May possibly 2023 but was extended for two years by Tau’s predecessor Ebrahim Patel after a ask for from the then recently-appointed board with the National Lotteries Commission (NLC).
The Board, which was handling the corruption that experienced confused the NLC, also encouraged Patel of representations by Ithuba that it were seriously afflicted by the Covid pandemic. This integrated a ban within the sale of lottery tickets at the height from the pandemic.
Regarding the extension, Ithuba had to produce contributions towards the NLC for distribution to great causes at the next amount than offered for in their First licence.
New licence operators are provided 6 months to setup infrastructure, together with ticket devices countrywide, to choose above from the earlier operator ahead of the incumbent’s licence finishes. This newest postponement signifies that there won't be ample time for a smooth transition and It's unlikely that Tau will lengthen Ithuba’s licence once more.
The entire process of appointing a whole new licence operator has also been tormented by allegations of conflict of fascination together with other difficulties.
GroundUp has figured out that the NLC has contingency plans in position to continue funding superior will cause for around a calendar year In case the lottery as well as the sale of lottery tickets are suspended.
The contingency also handles funding within the celebration of litigation by losing bidders each time a new operator is at last announced, which could also derail the smooth managing of your lottery.
In case ticket product sales are stopped, the NLC will use its reserves of R3.9-billion to continue funding qualifying organisations, a source with understanding of the contingency program advised GroundUp.
In his weekend statement announcing the postponement, Tau said: “Sadly, I'm not able to generate a ultimate selection at this time. Any these determination at the moment would in all good conscience signify that I have not used my brain with thanks consideration of many of the pertinent things.”
“I have recognized issues that involve more evaluation. It could be inappropriate to reveal these issues now and their disclosure could really properly prejudice the right adjudication with the awarding of your licence.”
Tau reported he was awaiting advice on The obvious way to ensure the continuation from the lottery in the interim and the “enhancement of a programme to finalise this method”.
This, he claimed, has to be carried out just after consultation with the Nationwide Treasury.”
Tau also hinted within the political makeup on the consortiums bidding for the licence as One more probable cause of the postponement.
He claimed: “I need to also make sure that the homeowners and supervisors with the thriving applicants are, as the Act states, ‘fit and correct persons’. In addition, I need to make sure no political bash or political Business-bearer has any direct monetary desire while in the applicant or even a shareholder of the applicant.”
Small business Day documented previously that a lot of of the companies shortlisted for your tender are politically uncovered.
The Gold Hurry consortium is led by high-profile businessperson Sandile Zungu, who challenged to the ANC KwaZulu-Natal chair situation in 2022 before dropping out right after he did not garner plenty of aid, the paper reported.
An additional politically connected bidder is HCI, that is bulk-owned through the South African Clothes and Textile Workers’ Union, an affiliate of Cosatu, which happens to be in alliance While using the ANC. CEO Johnny Copelyn donated to President Cyril Ramaphosa’s CR17 marketing campaign for your ANC presidency.
A further shortlisted bidder, As outlined by Organization Working day, is Thebe Financial commitment Company, which was Started 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 created to your electoral Fee.
Ithuba, the holder with the licence, is usually in the operating, as is Umbulelo Consortium, led by Afrirent Holdings; and Giya Games, Based on Company Working day.
Vivien Natasen consulted for Giya Online games on its bid. GroundUp documented in 2022 that Natasen, vialottovip his corporation Neo Methods, contributed R2-million towards the luxury mansion of the then-NLC chair Aflred Nevhutanda — while his enterprise Neo Methods experienced a contract Using the NLC. Natasen explained to GroundUp At the moment that Neo Options was “appointed through the NLC’s offer chain procedures, as and when expert services are necessary”.