Announcement of new lottery licence operator postponed - once again
Announcement of new lottery licence operator postponed - once again
Blog Article
Parks Tau, the trade and marketplace minister, has postponed naming a profitable bidder to operate South Africa’s lottery if the tenure of recent operator, Ithuba, ends in Might next 12 months.
Ithuba’s licence was because of to have expired in May well 2023 but was extended for two decades by Tau’s predecessor Ebrahim Patel after a request by the then recently-appointed board of your National Lotteries Commission (NLC).
The Board, which was addressing the corruption that experienced overwhelmed the NLC, also suggested Patel of representations by Ithuba that it had been severely affected through the Covid pandemic. This provided a ban to the sale of lottery tickets at the peak with the pandemic.
Concerning the extension, Ithuba experienced for making contributions to your NLC for distribution to fantastic brings about at a better charge than supplied for of their Preliminary licence.
New licence operators are given 6 months to setup infrastructure, together with ticket devices countrywide, to take in excess of in the past operator before the incumbent’s licence ends. This most current postponement ensures that there will not be sufficient time for any clean changeover and It is not likely that Tau will increase Ithuba’s licence again.
The process of appointing a fresh licence operator has also been tormented by allegations of conflict of fascination and various challenges.
GroundUp has figured out the NLC has contingency programs in place to carry on funding excellent leads to for up to a 12 months In the event the lottery and also the sale of lottery tickets are suspended.
The contingency also handles funding inside the party of litigation by losing bidders every time a new operator is lastly introduced, which could also derail The graceful running in the lottery.
Just in case ticket gross sales are stopped, the NLC will use its reserves of R3.nine-billion to carry on funding qualifying organisations, a resource with expertise in the contingency plan informed GroundUp.
In his weekend statement asserting the postponement, Tau said: “Unfortunately, I'm not able to generate a ultimate determination at this stage. Any such conclusion right now would in all excellent conscience mean which i haven't utilized my intellect with because of thing to consider of every one of the related components.”
“I've recognized matters that involve more analysis. It will be inappropriate to reveal these problems now and their disclosure could quite perfectly prejudice the proper adjudication from the awarding in the licence.”
Tau explained he was awaiting tips on The simplest way to ensure the continuation of your lottery during the interim as well as “enhancement of a programme to finalise this method”.
This, he claimed, have to be carried out after consultation Using the Nationwide Treasury.”
Tau also hinted in the political make-up of the consortiums bidding to the licence as another achievable reason behind the postponement.
He stated: “I have to also make sure the owners and professionals in the prosperous applicants are, as the Act states, ‘in good shape and appropriate people’. In addition, I must make sure no political party or political Place of work-bearer has any direct financial interest within the applicant or perhaps a shareholder from the applicant.”
Company Working day described Formerly that almost all of the businesses shortlisted to the tender are politically uncovered.
The Gold Rush consortium is led by superior-profile businessperson Sandile Zungu, who challenged to the ANC KwaZulu-Natal chair position in 2022 in advance of dropping out soon after he failed to garner plenty of help, the paper described.
An additional politically linked bidder is HCI, which is the greater part-owned by the South African Garments and Textile Personnel’ Union, an affiliate of Cosatu, which is in alliance With all the ANC. CEO Johnny Copelyn donated to President Cyril Ramaphosa’s CR17 campaign for your ANC presidency.
Another shortlisted bidder, In line with Organization Day, is Thebe Investment 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 since 2021, In line with declarations made on the electoral Fee.
Ithuba, the holder with the licence, is also within the managing, as is Umbulelo Consortium, led by Afrirent Holdings; and Giya Online games, In keeping with Business Working day.
Vivien Natasen consulted for Giya Online games on its bid. GroundUp documented in 2022 that Natasen, by means ofcat888 his business Neo Answers, contributed R2-million toward the posh mansion on the then-NLC chair Aflred Nevhutanda — when his corporation Neo Alternatives had a contract with the NLC. Natasen explained to GroundUp At the moment that Neo Options was “appointed through the NLC’s offer chain processes, as and when products and services are essential”.