Announcement of recent lottery licence operator postponed - once again
Announcement of recent lottery licence operator postponed - once again
Blog Article
Parks Tau, the trade and industry minister, has postponed naming a successful bidder to operate South Africa’s lottery when the tenure of present operator, Ithuba, ends in Could following yr.
Ithuba’s licence was due to obtain expired in May well 2023 but was extended for two many years by Tau’s predecessor Ebrahim Patel following a request by the then recently-appointed board from the Nationwide Lotteries Fee (NLC).
The Board, which was working with the corruption that had confused the NLC, also advised Patel of representations by Ithuba that it were seriously afflicted through the Covid pandemic. This integrated a ban over the sale of lottery tickets at the height in the pandemic.
In terms of the extension, Ithuba had to produce contributions on the NLC for distribution to fantastic brings about at the next level than provided for of their First licence.
New licence operators are presented six months to setup infrastructure, such as ticket devices countrywide, to get around with the former operator prior to the incumbent’s licence finishes. This most up-to-date postponement implies that there won't be sufficient time for the smooth changeover and It is actually not likely that Tau will prolong Ithuba’s licence once again.
The whole process of appointing a whole new licence operator has also been plagued by allegations of conflict of interest and other troubles.
GroundUp has learned the NLC has contingency designs in place to carry on funding great triggers for as many as a 12 months If your lottery and the sale of lottery tickets are suspended.
The contingency also handles funding within the function of litigation by dropping bidders each time a new operator is lastly announced, which could also derail The graceful working of the lottery.
In the event ticket gross sales are stopped, the NLC will use its reserves of R3.nine-billion to continue funding qualifying organisations, a source with familiarity with the contingency program instructed GroundUp.
In his weekend assertion asserting the postponement, Tau reported: “Regrettably, I'm not able for making a final final decision at this time. Any these types of choice at the moment would in all excellent conscience indicate that I haven't used my head with because of thing to consider of many of the applicable variables.”
“I have determined matters that have to have even more analysis. It might be inappropriate to reveal these problems now and their disclosure could pretty effectively prejudice the right adjudication from the awarding on the licence.”
Tau reported he was awaiting advice on The simplest way to ensure the continuation in the lottery while in the interim as well as “development of the programme to finalise this method”.
This, he explained, has to be carried out following session While using the Nationwide Treasury.”
Tau also hinted in the political make-up in the consortiums bidding with the licence as One more attainable reason for the postponement.
He explained: “I need to also make certain that the entrepreneurs and managers in the thriving applicants are, because the Act states, ‘in shape and good folks’. Additionally, I must be certain that no political occasion or political office-bearer has any immediate financial desire during the applicant or a shareholder from the applicant.”
Company Working day claimed Earlier that a lot of of the companies shortlisted for the tender are politically exposed.
The Gold Hurry consortium is led by significant-profile businessperson Sandile Zungu, who challenged for your ANC KwaZulu-Natal chair posture in 2022 in advance of dropping out following he did not garner more than enough help, the paper documented.
Another politically connected bidder is HCI, that's the greater part-owned by the South African Clothes and Textile Employees’ Union, an affiliate of Cosatu, which can be in alliance Along with the ANC. CEO Johnny Copelyn donated to President Cyril Ramaphosa’s CR17 marketing campaign for that ANC presidency.
One more shortlisted bidder, As outlined by Small business Day, is Thebe Investment decision Company, which was Launched by ANC leaders in 1992. Thebe is half-owned by Batho Batho Belief. The belief has donated R60-million on the ANC because 2021, In keeping with declarations designed towards the electoral commission.
Ithuba, the holder with the licence, is also inside the jogging, as is Umbulelo Consortium, led by Afrirent Holdings; and Giya Game titles, according to Organization Day.
Vivien Natasen consulted for Giya Video games on its bid. GroundUp noted in 2022 that Natasen, by means ofหวย his company Neo Options, contributed R2-million in direction of the posh mansion on the then-NLC chair Aflred Nevhutanda — even though his firm Neo Remedies had a contract Using the NLC. Natasen told GroundUp At the moment that Neo Remedies was “appointed with the NLC’s source chain procedures, as and when solutions are needed”.