ANNOUNCEMENT OF LATEST LOTTERY LICENCE OPERATOR POSTPONED - YET AGAIN

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 business minister, has postponed naming a winning bidder to run South Africa’s lottery if the tenure of present operator, Ithuba, ends in May perhaps up coming calendar year.

Ithuba’s licence was due to possess expired in Could 2023 but was extended for 2 decades by Tau’s predecessor Ebrahim Patel following a request from the then freshly-appointed board with the Nationwide Lotteries Fee (NLC).

The Board, which was addressing the corruption that had confused the NLC, also suggested Patel of representations by Ithuba that it were severely influenced by the Covid pandemic. This involved a ban around the sale of lottery tickets at the height of your pandemic.

Regarding the extension, Ithuba experienced to create contributions to your NLC for distribution to good triggers at a better amount than provided for in their Original licence.

New licence operators are given 6 months to arrange infrastructure, including ticket equipment countrywide, to acquire about through the earlier operator before the incumbent’s licence finishes. This most current postponement implies that there won't be adequate time for a clean changeover and It truly is not likely that Tau will lengthen Ithuba’s licence all over again.

The entire process of appointing a new licence operator has also been affected by allegations of conflict of desire and also other challenges.

GroundUp has discovered the NLC has contingency strategies in position to carry on funding fantastic results in for up to a year When the lottery as well as the sale of lottery tickets are suspended.

The contingency also addresses funding within the occasion of litigation by losing bidders any time a new operator is at last introduced, which could also derail the smooth jogging on the lottery.

In case ticket profits are stopped, the NLC will use its reserves of R3.9-billion to carry on funding qualifying organisations, a resource with understanding of the contingency approach informed GroundUp.

In his weekend assertion asserting the postponement, Tau stated: “Sad to say, I'm not in a position to produce a closing decision at this stage. Any this sort of final decision right now would in all superior conscience mean which i haven't utilized my thoughts with because of consideration of all the relevant things.”

“I've recognized issues that have to have even more evaluation. It could be inappropriate to disclose these challenges now and their disclosure could very very well prejudice the proper adjudication with the awarding in the licence.”

Tau reported he was awaiting suggestions on The easiest method to make sure the continuation of the lottery inside the interim plus the “development of a programme to finalise this process”.

This, he stated, has to be accomplished immediately after session Along with the Nationwide Treasury.”

Tau also hinted with the political makeup from the consortiums bidding for the licence as A further probable cause for the postponement.

He mentioned: “I need to also make sure the homeowners and managers on the effective applicants are, given that the Act states, ‘suit and good persons’. Also, I need to make certain that no political bash or political Workplace-bearer has any direct fiscal fascination during the applicant or a shareholder from the applicant.”

Enterprise Day reported Beforehand that most of the businesses shortlisted to the tender are politically exposed.

The Gold Hurry consortium is led by substantial-profile businessperson Sandile Zungu, who challenged for your ANC KwaZulu-Natal chair position in 2022 right before dropping out immediately after he failed to garner more than enough assist, the paper reported.

A different politically connected bidder is HCI, that's vast majority-owned with the South African Outfits and Textile Workers’ Union, an affiliate of Cosatu, that's in alliance with the ANC. CEO Johnny Copelyn donated to President Cyril Ramaphosa’s CR17 campaign for the ANC presidency.

An additional shortlisted bidder, In line with Small business Working day, is Thebe Financial commitment Corporation, which was Established by ANC leaders in 1992. Thebe is fifty percent-owned by Batho Batho Trust. The belief has donated R60-million on the ANC because 2021, In keeping with declarations created into the electoral commission.

Ithuba, the holder on the licence, is also inside the jogging, as is Umbulelo Consortium, led by Afrirent Holdings; and Giya Game titles, Based on Organization Working day.

Vivien Natasen consulted for Giya Online games on its bid. GroundUp documented in 2022 that Natasen, by way ofตรวจ หวย ผล สลากกินแบ่ง รัฐบาล งวด his company Neo Remedies, contributed R2-million towards the luxury mansion on the then-NLC chair Aflred Nevhutanda — though his organization Neo Remedies experienced a agreement While using the NLC. Natasen told GroundUp at that time that Neo Options was “appointed with the NLC’s provide chain processes, as and when solutions are needed”.

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