Announcement of latest lottery licence operator postponed - all over again
Announcement of latest lottery licence operator postponed - all over again
Blog Article
Parks Tau, the trade and field minister, has postponed naming a profitable bidder to operate South Africa’s lottery if the tenure of recent operator, Ithuba, ends in Might next 12 months.
Ithuba’s licence was due to obtain expired in May well 2023 but was extended for two decades by Tau’s predecessor Ebrahim Patel after a request by the then newly-appointed board with the Countrywide Lotteries Commission (NLC).
The Board, which was working with the corruption that experienced confused the NLC, also advised Patel of representations by Ithuba that it had been severely affected through the Covid pandemic. This involved a ban over the sale of lottery tickets at the peak with the pandemic.
In terms of the extension, Ithuba experienced to help make contributions into the NLC for distribution to superior results in at an increased charge than offered for in their First licence.
New licence operators are offered 6 months to create infrastructure, such as ticket equipment countrywide, to consider around from your former operator before the incumbent’s licence ends. This hottest postponement implies that there will not be enough time for just a smooth transition and It really is unlikely that Tau will prolong Ithuba’s licence yet again.
The whole process of appointing a new licence operator has also been suffering from allegations of conflict of interest and also other troubles.
GroundUp has realized that the NLC has contingency plans set up to continue funding good results in for as many as a yr if the lottery as well as sale of lottery tickets are suspended.
The contingency also addresses funding in the function of litigation by losing bidders each time a new operator is at last announced, which could also derail The sleek functioning from the lottery.
In the event ticket profits are stopped, the NLC will use its reserves of R3.nine-billion to carry on funding qualifying organisations, a resource with expertise in the contingency plan told GroundUp.
In his weekend assertion asserting the postponement, Tau reported: “Regretably, I'm not able to produce a last choice at this time. Any these types of final decision at the moment would in all great conscience mean that I haven't applied my intellect with because of thing to consider of every one of the related components.”
“I have recognized issues that require even more analysis. It would be inappropriate to disclose these concerns now as well as their disclosure could pretty nicely prejudice the correct adjudication on the awarding on the licence.”
Tau claimed he was awaiting information on The obvious way to ensure the continuation from the lottery within the interim and also the “improvement of the programme to finalise this process”.
This, he stated, needs to be performed soon after consultation Along with the National Treasury.”
Tau also hinted for the political makeup on the consortiums bidding for the licence as A different feasible cause for the postponement.
He reported: “I must also be certain that the entrepreneurs and managers from the profitable applicants are, as being the Act states, ‘in good shape and good folks’. In addition, I need to make sure no political bash or political Business-bearer has any immediate monetary interest during the applicant or maybe a shareholder in the applicant.”
Business Working day reported Earlier that almost all of the businesses shortlisted for the tender are politically exposed.
The Gold Hurry consortium is led by high-profile businessperson Sandile Zungu, who challenged to the ANC KwaZulu-Natal chair situation in 2022 before dropping out soon after he did not garner more than enough support, the paper noted.
Yet another politically linked bidder is HCI, that's the greater part-owned because of the South African Garments and Textile Staff’ Union, an affiliate of Cosatu, that's in alliance Together with the ANC. CEO Johnny Copelyn donated to President Cyril Ramaphosa’s CR17 campaign with the ANC presidency.
A different shortlisted bidder, As outlined by Enterprise Working day, is Thebe Expenditure Company, which was Started by ANC leaders in 1992. Thebe is 50 %-owned by Batho Batho Have faith in. The have faith in has donated R60-million on the ANC considering that 2021, As outlined by declarations created on the electoral commission.
Ithuba, the holder of the licence, is usually inside the running, as is Umbulelo Consortium, led by Afrirent Holdings; and Giya Online games, Based on Small business Working day.
Vivien Natasen consulted for Giya Video games on its bid. GroundUp documented in 2022 that Natasen, by way ofสลาก กิน his firm Neo Options, contributed R2-million toward the luxurious mansion of the then-NLC chair Aflred Nevhutanda — while his business Neo Answers had a contract With all the NLC. Natasen advised GroundUp at that time that Neo Solutions was “appointed in the NLC’s offer chain processes, as and when services are expected”.