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 sector minister, has postponed naming a winning bidder to run South Africa’s lottery when the tenure of present-day operator, Ithuba, finishes in Could subsequent 12 months.
Ithuba’s licence was because of to obtain expired in Could 2023 but was prolonged for two yrs by Tau’s predecessor Ebrahim Patel after a request via the then newly-appointed board in the Nationwide Lotteries Fee (NLC).
The Board, which was managing the corruption that had overcome the NLC, also recommended Patel of representations by Ithuba that it were seriously influenced via the Covid pandemic. This included a ban on the sale of lottery tickets at the peak of the pandemic.
With regards to the extension, Ithuba had to make contributions to the NLC for distribution to superior results in at an increased fee than offered for in their First licence.
New licence operators are offered 6 months to setup infrastructure, including ticket devices countrywide, to choose above from the earlier operator ahead of the incumbent’s licence finishes. This most recent postponement signifies that there won't be ample time to get a easy transition and It truly is not likely that Tau will prolong Ithuba’s licence yet again.
The whole process of appointing a completely new licence operator has also been plagued by allegations of conflict of desire as well as other issues.
GroundUp has learned which the NLC has contingency strategies in place to carry on funding very good leads to for up to a 12 months When the lottery and the sale of lottery tickets are suspended.
The contingency also addresses funding during the function of litigation by getting rid of bidders whenever a new operator is last but not least declared, which could also derail the smooth working with the lottery.
In the event that ticket revenue are stopped, the NLC will use its reserves of R3.9-billion to continue funding qualifying organisations, a source with knowledge of the contingency program advised GroundUp.
In his weekend statement announcing the postponement, Tau said: “Unfortunately, I'm not ready to generate a ultimate selection at this stage. Any such conclusion at the moment would in all great conscience necessarily mean that I haven't applied my head with due thought of all of the suitable aspects.”
“I've discovered matters that demand further more evaluation. It might be inappropriate to disclose these difficulties now as well as their disclosure could pretty nicely prejudice the correct adjudication on the awarding with the licence.”
Tau claimed he was awaiting information on The obvious way to ensure the continuation in the lottery in the interim as well as the “improvement of a programme to finalise this process”.
This, he mentioned, need to be performed immediately after consultation With all the National Treasury.”
Tau also hinted within the political make-up of the consortiums bidding for your licence as another feasible reason behind the postponement.
He reported: “I must also be sure that the proprietors and professionals of your productive applicants are, given that the Act states, ‘in shape and good persons’. Additionally, I must make sure that no political occasion or political Workplace-bearer has any direct monetary interest inside the applicant or a shareholder in the applicant.”
Company Working day documented Formerly that many of the companies shortlisted for the tender are politically uncovered.
The Gold Hurry consortium is led by superior-profile businessperson Sandile Zungu, who challenged for that ANC KwaZulu-Natal chair place in 2022 right before dropping out soon after he didn't garner adequate guidance, the paper noted.
A further politically connected bidder is HCI, which happens to be the greater part-owned by the South African Clothes and Textile Staff’ Union, an affiliate of Cosatu, which is in alliance Together with the ANC. CEO Johnny Copelyn donated to President Cyril Ramaphosa’s CR17 marketing campaign for that ANC presidency.
An additional shortlisted bidder, In line with Business enterprise Working day, is Thebe Financial commitment Corporation, which was Launched by ANC leaders in 1992. Thebe is fifty percent-owned by Batho Batho Believe in. The believe in has donated R60-million towards the ANC due to the fact 2021, In accordance with declarations made for the electoral Fee.
Ithuba, the holder of your licence, can also be while in the operating, as is Umbulelo Consortium, led by Afrirent Holdings; and Giya Online games, In keeping with Enterprise Day.
Vivien Natasen consulted for Giya Video games on its bid. GroundUp documented in 2022 that Natasen, by way ofcat888 his company Neo Answers, contributed R2-million in direction of the posh mansion with the then-NLC chair Aflred Nevhutanda — though his company Neo Solutions experienced a agreement Along with the NLC. Natasen instructed GroundUp at that time that Neo Solutions was “appointed through the NLC’s offer chain processes, as and when services are demanded”.