Announcement of new lottery licence operator postponed - once again
Announcement of new lottery licence operator postponed - once again
Blog Article
Parks Tau, the trade and market minister, has postponed naming a profitable bidder to operate South Africa’s lottery if the tenure of recent operator, Ithuba, ends in May perhaps upcoming yr.
Ithuba’s licence was due to acquire expired in Could 2023 but was prolonged 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 from the Covid pandemic. This provided a ban over the sale of lottery tickets at the peak of the pandemic.
Regarding the extension, Ithuba had for making contributions to your NLC for distribution to very good brings about at a greater price than provided for inside their Preliminary licence.
New licence operators are given six months to setup infrastructure, together with ticket machines countrywide, to choose in excess of in the past operator ahead of the incumbent’s licence ends. This most current postponement ensures that there will not be sufficient time for the clean changeover and It is actually not likely that Tau will increase Ithuba’s licence again.
The process of appointing a whole new licence operator has also been stricken by allegations of conflict of desire along with other concerns.
GroundUp has uncovered that the NLC has contingency ideas set up to carry on funding great causes for nearly a yr When the lottery and the 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 finally 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 approach explained to GroundUp.
In his weekend assertion saying the postponement, Tau claimed: “Sad to say, I'm not able to produce a last selection at this time. Any these types of final decision at the moment would in all good conscience signify that I haven't used my intellect with because of thing to consider of each of the relevant variables.”
“I've identified matters that involve more analysis. It will be inappropriate to reveal these problems now and their disclosure could quite well prejudice the proper adjudication from the awarding in the licence.”
Tau explained he was awaiting tips on The easiest method to ensure the continuation of the lottery in the interim and the “development of the programme to finalise this process”.
This, he reported, need to be accomplished following session With all the Countrywide Treasury.”
Tau also hinted on the political make-up of the consortiums bidding to the licence as another attainable reason behind the postponement.
He stated: “I have to also be sure that the owners and managers in the profitable applicants are, as being the Act states, ‘fit and proper persons’. In addition, I need to make sure no political bash or political Business-bearer has any direct monetary desire from the applicant or possibly a shareholder from the applicant.”
Business Day claimed Formerly that most of the companies shortlisted for that tender are politically uncovered.
The Gold Rush consortium is led by substantial-profile businessperson Sandile Zungu, who challenged for the ANC KwaZulu-Natal chair placement in 2022 in advance of dropping out following he failed to garner ample guidance, the paper claimed.
Another politically related bidder is HCI, that is bulk-owned through the South African Clothes and Textile Workers’ Union, an affiliate of Cosatu, which is in alliance with the ANC. CEO Johnny Copelyn donated to President Cyril Ramaphosa’s CR17 marketing campaign to the ANC presidency.
An additional shortlisted bidder, according to Business enterprise Day, is Thebe Expense Company, which was founded by ANC leaders in 1992. Thebe is 50 percent-owned by Batho Batho Trust. The have faith in has donated R60-million to the ANC given that 2021, In keeping with declarations produced for the electoral commission.
Ithuba, the holder on the licence, is likewise during the running, as is Umbulelo Consortium, led by Afrirent Holdings; and Giya Game titles, according to Business Working day.
Vivien Natasen consulted for Giya Video games on its bid. GroundUp noted in 2022 that Natasen, throughหวย หุ้น ช่อง 9 his company Neo Answers, contributed R2-million in direction of the posh mansion on the then-NLC chair Aflred Nevhutanda — even though his firm Neo Answers had a deal Along with the NLC. Natasen advised GroundUp at that time that Neo Methods was “appointed from the NLC’s provide chain procedures, as and when providers are required”.