Announcement of latest lottery licence operator postponed - yet again
Announcement of latest lottery licence operator postponed - yet again
Blog Article
Parks Tau, the trade and marketplace minister, has postponed naming a winning bidder to run South Africa’s lottery in the event the tenure of present operator, Ithuba, ends in Might up coming yr.
Ithuba’s licence was because of to get expired in Could 2023 but was extended for 2 decades by Tau’s predecessor Ebrahim Patel following a request by the then freshly-appointed board on the National Lotteries Fee (NLC).
The Board, which was working with the corruption that had confused the NLC, also suggested Patel of representations by Ithuba that it were seriously impacted by the Covid pandemic. This provided a ban around the sale of lottery tickets at the height of your pandemic.
Regarding the extension, Ithuba experienced to create contributions on the NLC for distribution to superior leads to at a better amount than delivered for of their Original licence.
New licence operators are specified 6 months to build infrastructure, together with ticket devices countrywide, to just take in excess of through the earlier operator before the incumbent’s licence finishes. This most recent postponement means that there won't be adequate time for just a clean changeover and It truly is unlikely that Tau will lengthen Ithuba’s licence all over again.
The entire process of appointing a new licence operator has also been tormented by allegations of conflict of desire and also other issues.
GroundUp has realized the NLC has contingency strategies in position to carry on funding fantastic causes for as much as a year In the event the lottery along with the sale of lottery tickets are suspended.
The contingency also addresses funding inside the occasion of litigation by losing bidders any time a new operator is eventually 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 familiarity with the contingency plan advised GroundUp.
In his weekend assertion asserting the postponement, Tau mentioned: “Regretably, I am not in a position to generate a remaining choice at this stage. Any these kinds of final decision presently would in all good conscience imply that I haven't used my head with owing thought of every one of the appropriate aspects.”
“I have discovered matters that need further analysis. It might be inappropriate to reveal these concerns now as well as their disclosure could quite very well prejudice the right adjudication on the awarding in the licence.”
Tau said he was awaiting information on The simplest way to make sure the continuation from the lottery from the interim and also the “progress of the programme to finalise this process”.
This, he mentioned, need to be done soon after consultation Using the Countrywide Treasury.”
Tau also hinted with the political make-up of the consortiums bidding to the licence as A further feasible cause of the postponement.
He stated: “I must also ensure that the proprietors and managers from the productive applicants are, as the Act states, ‘healthy and suitable persons’. Also, I must make sure no political occasion or political Office environment-bearer has any direct fiscal desire within the applicant or possibly a shareholder with the applicant.”
Business Day reported Beforehand that the majority of the companies shortlisted for the tender are politically uncovered.
The Gold Rush consortium is led by large-profile businessperson Sandile Zungu, who challenged for your ANC KwaZulu-Natal chair place in 2022 prior to dropping out after he did not garner ample help, the paper claimed.
A further politically connected bidder is HCI, which happens to be greater part-owned by the South African Apparel and Textile Staff’ Union, an affiliate of Cosatu, which can be in alliance While using the ANC. CEO Johnny Copelyn donated to President Cyril Ramaphosa’s CR17 marketing campaign for the ANC presidency.
Yet another shortlisted bidder, In line with Business enterprise Working day, is Thebe Investment Company, which was Launched by ANC leaders in 1992. Thebe is 50 percent-owned by Batho Batho Have faith in. The have faith in has donated R60-million for the ANC given that 2021, In accordance with declarations produced to the electoral commission.
Ithuba, the holder with the licence, can be within the running, as is Umbulelo Consortium, led by Afrirent Holdings; and Giya Online games, Based on Small business Working day.
Vivien Natasen consulted for Giya Games on its bid. GroundUp documented in 2022 that Natasen, as a result ofผล หวย his organization Neo Solutions, contributed R2-million toward the luxurious mansion on the then-NLC chair Aflred Nevhutanda — whilst his enterprise Neo Answers experienced a deal with the NLC. Natasen informed GroundUp at that time that Neo Alternatives was “appointed through the NLC’s supply chain processes, as and when companies are demanded”.
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