Announcement of new lottery licence operator postponed - once more
Announcement of new lottery licence operator postponed - once more
Blog Article
Parks Tau, the trade and business minister, has postponed naming a successful bidder to operate South Africa’s lottery if the tenure of latest operator, Ithuba, ends in May perhaps future calendar year.
Ithuba’s licence was owing to acquire expired in May 2023 but was prolonged for 2 several years by Tau’s predecessor Ebrahim Patel after a ask for via the then newly-appointed board of your Countrywide Lotteries Commission (NLC).
The Board, which was coping with the corruption that experienced overwhelmed the NLC, also suggested Patel of representations by Ithuba that it were severely influenced by the Covid pandemic. This bundled a ban to the sale of lottery tickets at the height of your pandemic.
With regards to the extension, Ithuba experienced to make contributions on the NLC for distribution to excellent results in at a greater fee than furnished for of their Original licence.
New licence operators are given 6 months to arrange infrastructure, including ticket equipment countrywide, to take more than from your prior operator before the incumbent’s licence finishes. This latest postponement signifies that there will not be enough time to get a clean changeover and It really is not likely that Tau will increase Ithuba’s licence once more.
The whole process of appointing a fresh licence operator has also been stricken by allegations of conflict of interest and various problems.
GroundUp has realized that the NLC has contingency options set up to carry on funding good triggers for as many as a calendar year Should the lottery plus the sale of lottery tickets are suspended.
The contingency also handles funding in the occasion of litigation by losing bidders when a new operator is lastly declared, which could also derail The sleek running of the lottery.
In the event that ticket revenue are stopped, the NLC will use its reserves of R3.nine-billion to continue funding qualifying organisations, a source with understanding of the contingency approach told GroundUp.
In his weekend statement announcing the postponement, Tau mentioned: “However, I'm not able to create a last selection at this stage. Any these decision at the moment would in all excellent conscience indicate that I haven't utilized my thoughts with due thing to consider of all the suitable components.”
“I have determined issues that demand further evaluation. It could be inappropriate to reveal these concerns now as well as their disclosure could very properly prejudice the appropriate adjudication from the awarding with the licence.”
Tau said he was awaiting guidance on The easiest method to ensure the continuation in the lottery while in the interim plus the “progress of the programme to finalise this process”.
This, he reported, need to be accomplished right after session While using the National Treasury.”
Tau also hinted within the political makeup with the consortiums bidding for your licence as A different achievable reason behind the postponement.
He stated: “I have to also make sure the owners and professionals on the thriving applicants are, given that the Act states, ‘match and appropriate individuals’. Furthermore, I must make certain that no political get together or political Place of work-bearer has any immediate money fascination inside the applicant or even a shareholder of the applicant.”
Business enterprise Day reported Earlier that almost all of the businesses shortlisted for your tender are politically exposed.
The Gold Hurry consortium is led by higher-profile businessperson Sandile Zungu, who challenged with the ANC KwaZulu-Natal chair posture in 2022 ahead of dropping out right after he did not garner enough help, the paper claimed.
An additional politically connected bidder is HCI, which can be the greater part-owned by the South African Clothing and Textile Workers’ Union, an affiliate of Cosatu, that is in alliance Using the ANC. CEO Johnny Copelyn donated to President Cyril Ramaphosa’s CR17 campaign for that ANC presidency.
One more shortlisted bidder, In line with Enterprise Working day, is Thebe Financial investment Corporation, which was Established by ANC leaders in 1992. Thebe is 50 percent-owned by Batho Batho Have faith in. The believe in has donated R60-million towards the ANC given that 2021, Based on declarations built for the electoral Fee.
Ithuba, the holder of your licence, is additionally from the running, as is Umbulelo Consortium, led by Afrirent Holdings; and Giya Games, In accordance with Business enterprise Working day.
Vivien Natasen consulted for Giya Online games on its bid. GroundUp claimed in 2022 that Natasen, as a result ofผล หวย หุ้น his business Neo Remedies, contributed R2-million toward the luxurious mansion of your then-NLC chair Aflred Nevhutanda — whilst his organization Neo Answers had a contract Using the NLC. Natasen explained to GroundUp at that time that Neo Remedies was “appointed throughout the NLC’s provide chain procedures, as and when products and services are expected”.