ANNOUNCEMENT OF NEW LOTTERY LICENCE OPERATOR POSTPONED - YET AGAIN

Announcement of new lottery licence operator postponed - yet again

Announcement of new lottery licence operator postponed - yet again

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Parks Tau, the trade and business minister, has postponed naming a successful bidder to operate South Africa’s lottery once the tenure of recent operator, Ithuba, finishes in May 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 through the then newly-appointed board of the Countrywide Lotteries Commission (NLC).

The Board, which was coping with the corruption that experienced overwhelmed the NLC, also encouraged Patel of representations by Ithuba that it had been seriously affected via the Covid pandemic. This provided a ban on the sale of lottery tickets at the height of your pandemic.

With regard to the extension, Ithuba experienced to create contributions to your NLC for distribution to good triggers at an increased level than supplied for within their Preliminary licence.

New licence operators are presented six months to create infrastructure, which include ticket equipment countrywide, to get around from your previous operator before the incumbent’s licence ends. This most up-to-date postponement means that there won't be sufficient time to get a sleek changeover and It can be unlikely that Tau will extend Ithuba’s licence again.

The process of appointing a brand new licence operator has also been suffering from allegations of conflict of interest as well as other challenges.

GroundUp has realized that the NLC has contingency designs in place to continue funding superior triggers for nearly a 12 months In the event the lottery as well as the sale of lottery tickets are suspended.

The contingency also handles funding in the occasion of litigation by dropping bidders each time a new operator is eventually introduced, which could also derail The sleek running in the lottery.

In case ticket sales are stopped, the NLC will use its reserves of R3.nine-billion to continue funding qualifying organisations, a supply with familiarity with the contingency program informed GroundUp.

In his weekend assertion saying the postponement, Tau mentioned: “Regrettably, I'm not in a position for making a last conclusion at this stage. Any these kinds of decision at the moment would in all fantastic conscience mean which i haven't used my thoughts with due consideration of all of the appropriate variables.”

“I have identified issues that involve further more analysis. It might be inappropriate to reveal these difficulties now and their disclosure could extremely effectively prejudice the right adjudication in the awarding of the licence.”

Tau claimed he was awaiting suggestions on The easiest way to ensure the continuation with the lottery while in the interim along with the “advancement of a programme to finalise this method”.

This, he stated, needs to be completed after consultation with the National Treasury.”

Tau also hinted for the political make-up in the consortiums bidding with the licence as An additional probable cause for the postponement.

He stated: “I have to also make sure the entrepreneurs and professionals in the profitable applicants are, since the Act states, ‘in shape and correct folks’. Furthermore, I need to be certain that no political party or political Business-bearer has any direct fiscal interest inside the applicant or maybe a shareholder from the applicant.”

Organization Working day claimed Beforehand that the majority of the companies shortlisted for your tender are politically exposed.

The Gold Rush consortium is led by large-profile businessperson Sandile Zungu, who challenged to the ANC KwaZulu-Natal chair place in 2022 prior to dropping out right after he didn't garner plenty of help, the paper reported.

A further politically connected bidder is HCI, which is the vast majority-owned with the South African Clothes and Textile Personnel’ Union, an affiliate of Cosatu, and that is in alliance With all the ANC. CEO Johnny Copelyn donated to President Cyril Ramaphosa’s CR17 marketing campaign with the ANC presidency.

Another shortlisted bidder, In line with Small business Working day, is Thebe Investment Corporation, which was founded by ANC leaders in 1992. Thebe is 50 %-owned by Batho Batho Belief. The rely on has donated R60-million on the ANC considering that 2021, In accordance with declarations made to your electoral commission.

Ithuba, the holder of the licence, is likewise within the jogging, as is Umbulelo Consortium, led by Afrirent Holdings; and Giya Games, As outlined by Company Day.

Vivien Natasen consulted for Giya Online games on its bid. GroundUp described in 2022 that Natasen, throughตรวจ รางวัล his company Neo Alternatives, contributed R2-million in the direction of the luxurious mansion of the then-NLC chair Aflred Nevhutanda — even though his company Neo Answers had a agreement While using the NLC. Natasen informed GroundUp at that time that Neo Answers was “appointed from the NLC’s offer chain procedures, as and when expert services are demanded”.

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