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 field minister, has postponed naming a successful bidder to operate South Africa’s lottery when the tenure of existing operator, Ithuba, ends in May possibly upcoming 12 months.
Ithuba’s licence was owing to acquire expired in May well 2023 but was extended for two years 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 working with the corruption that had confused the NLC, also suggested Patel of representations by Ithuba that it were severely impacted by the Covid pandemic. This involved a ban within the sale of lottery tickets at the peak of the pandemic.
With regard to the extension, Ithuba experienced to produce contributions to your NLC for distribution to good triggers at an increased amount than provided for in their initial licence.
New licence operators are offered 6 months to arrange infrastructure, including ticket equipment countrywide, to choose about with the preceding operator before the incumbent’s licence finishes. This most up-to-date postponement implies that there won't be adequate time for a clean transition and It can be unlikely that Tau will prolong Ithuba’s licence 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 if the lottery as well as the sale of lottery tickets are suspended.
The contingency also covers funding within the event of litigation by getting rid of bidders every time a new operator is last but not least announced, which could also derail The graceful managing from the lottery.
In the event that ticket income are stopped, the NLC will use its reserves of R3.nine-billion to continue funding qualifying organisations, a supply with knowledge of the contingency system told GroundUp.
In his weekend statement saying the postponement, Tau reported: “Regrettably, I'm not ready to make a last final decision at this time. Any such choice at the moment would in all excellent conscience indicate that I have not used my intellect with thanks thought of every one of the appropriate aspects.”
“I have discovered matters that need further analysis. It would be inappropriate to reveal these concerns now as well as their disclosure could really well prejudice the right adjudication of the awarding with the licence.”
Tau stated he was awaiting assistance on The obvious way to make sure the continuation of the lottery inside the interim as well as “development of a programme to finalise this process”.
This, he stated, has to be accomplished soon after consultation Together with the Nationwide Treasury.”
Tau also hinted on the political makeup of your consortiums bidding for that licence as A different achievable cause of the postponement.
He said: “I have to also make certain that the entrepreneurs and supervisors of the prosperous applicants are, because the Act states, ‘in good shape and appropriate people’. In addition, I have to be sure that no political celebration or political Business office-bearer has any immediate money desire during the applicant or a shareholder from the applicant.”
Enterprise Day reported previously that most of the businesses shortlisted for that tender are politically exposed.
The Gold Hurry consortium is led by significant-profile businessperson Sandile Zungu, who challenged to the 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 majority-owned with the South African Outfits and Textile Workers’ Union, an affiliate of Cosatu, that's in alliance While using the ANC. CEO Johnny Copelyn donated to President Cyril Ramaphosa’s CR17 marketing campaign for the ANC presidency.
An additional shortlisted bidder, In line with Small business Day, is Thebe Financial commitment Corporation, which was founded by ANC leaders in 1992. Thebe is half-owned by Batho Batho Belief. The belief has donated R60-million to your ANC considering that 2021, In accordance with declarations made to your electoral commission.
Ithuba, the holder with the licence, is additionally during the working, as is Umbulelo Consortium, led by Afrirent Holdings; and Giya Game titles, Based on Small business Working day.
Vivien Natasen consulted for Giya Games on its bid. GroundUp noted in 2022 that Natasen, by way ofตรวจ รางวัล his enterprise Neo Remedies, contributed R2-million towards the posh mansion of your then-NLC chair Aflred Nevhutanda — although his corporation Neo Solutions had a agreement Along with the NLC. Natasen explained to GroundUp At the moment that Neo Solutions was “appointed with the NLC’s provide chain processes, as and when providers are essential”.
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