Announcement of new lottery licence operator postponed - again
Announcement of new lottery licence operator postponed - again
Blog Article
Parks Tau, the trade and marketplace minister, has postponed naming a profitable bidder to operate South Africa’s lottery if the tenure of latest operator, Ithuba, ends in Might future yr.
Ithuba’s licence was due to acquire expired in Might 2023 but was prolonged for two yrs by Tau’s predecessor Ebrahim Patel following a request because of the then newly-appointed board on the Countrywide Lotteries Fee (NLC).
The Board, which was handling the corruption that experienced confused the NLC, also encouraged Patel of representations by Ithuba that it were seriously affected through the Covid pandemic. This provided a ban to the sale of lottery tickets at the peak on the pandemic.
In terms of the extension, Ithuba experienced to help make contributions into the NLC for distribution to superior will cause at an increased charge than supplied for of their First licence.
New licence operators are offered 6 months to setup infrastructure, together with ticket devices countrywide, to take in excess of from the preceding operator ahead of the incumbent’s licence ends. This most current postponement ensures that there will not be sufficient time for any clean changeover and It is actually not likely that Tau will increase Ithuba’s licence again.
The process of appointing a fresh licence operator has also been affected by allegations of conflict of fascination and various challenges.
GroundUp has discovered that the NLC has contingency ideas in position to continue funding great causes for up to a calendar year If your lottery plus the sale of lottery tickets are suspended.
The contingency also covers funding during the function of litigation by getting rid of bidders whenever a new operator is lastly declared, which could also derail the smooth functioning on the lottery.
In the event ticket gross sales are stopped, the NLC will use its reserves of R3.9-billion to continue funding qualifying organisations, a supply with knowledge of the contingency plan instructed GroundUp.
In his weekend assertion asserting the postponement, Tau mentioned: “Sad to say, I am not in a position to help make a last determination at this time. Any these types of conclusion right now would in all fantastic conscience signify that I haven't applied my intellect with owing consideration of many of the applicable variables.”
“I've recognized issues that demand more analysis. It will be inappropriate to disclose these difficulties now as well as their disclosure could extremely properly prejudice the appropriate adjudication in the awarding on the licence.”
Tau reported he was awaiting advice on the best way to ensure the continuation in the lottery while in the interim and the “growth of the programme to finalise this process”.
This, he mentioned, have to be completed immediately after consultation With all the National Treasury.”
Tau also hinted for the political makeup with the consortiums bidding to the licence as An additional doable cause of the postponement.
He reported: “I must also be sure that the owners and professionals on the thriving applicants are, as the Act states, ‘suit and right folks’. Additionally, I must make certain that no political social gathering or political Business-bearer has any immediate economical desire in the applicant or a shareholder of your applicant.”
Business enterprise Day reported Beforehand that most of the businesses shortlisted for your tender are politically uncovered.
The Gold Rush consortium is led by superior-profile businessperson Sandile Zungu, who challenged with the ANC KwaZulu-Natal chair placement in 2022 before dropping out just after he failed to garner adequate assistance, the paper documented.
Another politically connected bidder is HCI, and that is majority-owned through the South African Apparel and Textile Staff’ Union, an affiliate of Cosatu, that's in alliance While using the ANC. CEO Johnny Copelyn donated to President Cyril Ramaphosa’s CR17 marketing campaign for that ANC presidency.
A different shortlisted bidder, In keeping with Business Working day, is Thebe Expenditure Corporation, which was Established by ANC leaders in 1992. Thebe is fifty percent-owned by Batho Batho Believe in. The believe in has donated R60-million into the ANC considering that 2021, according to declarations designed to the electoral commission.
Ithuba, the holder on the licence, is usually within the working, as is Umbulelo Consortium, led by Afrirent Holdings; and Giya Video games, In line with Small business Working day.
Vivien Natasen consulted for Giya Online games on its bid. GroundUp documented in 2022 that Natasen, by means ofตรวจ หวย ลาว his organization Neo Remedies, contributed R2-million to the luxurious mansion of your then-NLC chair Aflred Nevhutanda — though his enterprise Neo Methods experienced a agreement With all the NLC. Natasen informed GroundUp At the moment that Neo Remedies was “appointed throughout the NLC’s supply chain procedures, as and when solutions are demanded”.