Announcement of latest lottery licence operator postponed - once more
Announcement of latest lottery licence operator postponed - once more
Blog Article
Parks Tau, the trade and business minister, has postponed naming a profitable bidder to run South Africa’s lottery when the tenure of present-day operator, Ithuba, finishes in Might upcoming calendar year.
Ithuba’s licence was because of to obtain expired in Might 2023 but was extended for two a long time by Tau’s predecessor Ebrahim Patel after a request with the then newly-appointed board from the Countrywide Lotteries Fee (NLC).
The Board, which was addressing the corruption that experienced overwhelmed the NLC, also encouraged Patel of representations by Ithuba that it were severely afflicted because of the Covid pandemic. This incorporated a ban on the sale of lottery tickets at the height in the pandemic.
With regards to the extension, Ithuba experienced for making contributions on the NLC for distribution to very good causes at a better price than delivered for in their Preliminary licence.
New licence operators are given 6 months to setup infrastructure, including ticket machines countrywide, to just take more than from your preceding operator prior to the incumbent’s licence ends. This newest postponement means that there won't be enough time for your easy transition and It is not likely that Tau will lengthen Ithuba’s licence all over again.
The whole process of appointing a whole new licence operator has also been suffering from allegations of conflict of interest and other troubles.
GroundUp has acquired that the NLC has contingency programs in position to carry on funding excellent results in for up to a yr Should the lottery along with the sale of lottery tickets are suspended.
The contingency also handles funding within the function of litigation by shedding bidders when a new operator is lastly declared, which could also derail The sleek working in the lottery.
In case ticket profits are stopped, the NLC will use its reserves of R3.9-billion to carry on funding qualifying organisations, a source with expertise in the contingency program explained to GroundUp.
In his weekend statement asserting the postponement, Tau mentioned: “Sadly, I am not ready to create a remaining choice at this stage. Any such conclusion at this time would in all excellent conscience signify which i haven't utilized my head with thanks thing to consider of many of the relevant components.”
“I have identified matters that require more evaluation. It would be inappropriate to disclose these problems now and their disclosure could very nicely prejudice the proper adjudication of the awarding of your licence.”
Tau said he was awaiting advice on The easiest method to ensure the continuation in the lottery while in the interim and also the “enhancement of a programme to finalise this process”.
This, he claimed, has to be finished immediately after session With all the Countrywide Treasury.”
Tau also hinted on the political make-up from the consortiums bidding for that licence as Yet another probable reason for the postponement.
He claimed: “I need to also make sure that the proprietors and managers from the productive applicants are, since the Act states, ‘suit and right people’. Moreover, I must make sure that no political party or political Workplace-bearer has any immediate economic interest during the applicant or possibly a shareholder of your applicant.”
Organization Working day noted Formerly that almost all of the companies shortlisted with the tender are politically exposed.
The Gold Rush consortium is led by substantial-profile businessperson Sandile Zungu, who challenged for that ANC KwaZulu-Natal chair posture in 2022 right before dropping out right after he did not garner ample aid, the paper reported.
An additional politically connected bidder is HCI, which happens to be greater part-owned by the South African Outfits and Textile Staff’ Union, an affiliate of Cosatu, that's in alliance Along with the ANC. CEO Johnny Copelyn donated to President Cyril Ramaphosa’s CR17 campaign for that ANC presidency.
Yet another shortlisted bidder, according to Organization Working day, is Thebe Expense Corporation, which was Started by ANC leaders in 1992. Thebe is fifty percent-owned by Batho Batho Rely on. The belief has donated R60-million towards the ANC considering that 2021, As outlined by declarations built to the electoral commission.
Ithuba, the holder of your licence, is also from the running, as is Umbulelo Consortium, led by Afrirent Holdings; and Giya Game titles, In keeping with Small business Day.
Vivien Natasen consulted for Giya Video games on its bid. GroundUp reported in 2022 that Natasen, byหวย ออก his business Neo Methods, contributed R2-million toward the luxury mansion on the then-NLC chair Aflred Nevhutanda — although his enterprise Neo Answers experienced a deal Together with the NLC. Natasen explained to GroundUp at that time that Neo Answers was “appointed in the NLC’s supply chain processes, as and when providers are expected”.
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