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 marketplace minister, has postponed naming a successful bidder to operate South Africa’s lottery once the tenure of recent operator, Ithuba, finishes in May perhaps up coming yr.
Ithuba’s licence was due to have expired in May perhaps 2023 but was prolonged for two many years by Tau’s predecessor Ebrahim Patel following a request by the then recently-appointed board from the Countrywide Lotteries Commission (NLC).
The Board, which was dealing with the corruption that had overcome the NLC, also encouraged Patel of representations by Ithuba that it were severely afflicted by the Covid pandemic. This included a ban over the sale of lottery tickets at the height on the pandemic.
When it comes to the extension, Ithuba had for making contributions to the NLC for distribution to fantastic causes at an increased level than supplied for within their Preliminary licence.
New licence operators are supplied six months to setup infrastructure, which include ticket devices countrywide, to just take about with the former operator before the incumbent’s licence finishes. This latest postponement means that there won't be sufficient time for just a easy changeover and It is unlikely that Tau will increase Ithuba’s licence once again.
The entire process of appointing a fresh licence operator has also been tormented by allegations of conflict of curiosity along with other difficulties.
GroundUp has discovered the NLC has contingency options set up to carry on funding superior causes for around a 12 months If your lottery and the sale of lottery tickets are suspended.
The contingency also handles funding during the celebration of litigation by dropping bidders when a new operator is at last introduced, which could also derail The graceful working on the lottery.
Just in case ticket revenue are stopped, the NLC will use its reserves of R3.nine-billion to carry on funding qualifying organisations, a source with knowledge of the contingency approach explained to GroundUp.
In his weekend assertion saying the postponement, Tau said: “However, I am not able for making a remaining choice at this stage. Any this kind of selection right now would in all fantastic conscience signify that I haven't utilized my brain with because of consideration of many of the applicable components.”
“I have discovered matters that demand more analysis. It would be inappropriate to reveal these concerns now as well as their disclosure could incredibly perfectly prejudice the right adjudication from the awarding with the licence.”
Tau stated he was awaiting advice on The easiest method to make sure the continuation of the lottery while in the interim and the “advancement of a programme to finalise this method”.
This, he reported, should be completed right after consultation With all the National Treasury.”
Tau also hinted at the political make-up with the consortiums bidding to the licence as A different doable basis for the postponement.
He stated: “I have to also be certain that the proprietors and managers with the productive applicants are, because the Act states, ‘healthy and appropriate people’. Moreover, I need to make certain that no political celebration or political Office environment-bearer has any immediate financial curiosity from the applicant or a shareholder on the applicant.”
Small business Working day claimed previously that a lot of of the companies shortlisted for the tender are politically uncovered.
The Gold Rush consortium is led by large-profile businessperson Sandile Zungu, who challenged for your ANC KwaZulu-Natal chair position in 2022 before dropping out just after he failed to garner enough help, the paper claimed.
Yet another politically related bidder is HCI, which can be the greater part-owned by the South African Clothes and Textile Employees’ Union, an affiliate of Cosatu, and that is in alliance Using the ANC. CEO Johnny Copelyn donated to President Cyril Ramaphosa’s CR17 campaign to the ANC presidency.
Yet another shortlisted bidder, As outlined by Business enterprise Working day, is Thebe Financial investment Company, which was Launched by ANC leaders in 1992. Thebe is half-owned by Batho Batho Believe in. The belief has donated R60-million into the ANC since 2021, As outlined by declarations produced to your electoral Fee.
Ithuba, the holder of the licence, can be within the functioning, as is Umbulelo Consortium, led by Afrirent Holdings; and Giya Video games, In keeping with Enterprise Day.
Vivien Natasen consulted for Giya Video games on its bid. GroundUp documented in 2022 that Natasen, as a result ofหวย วัน นี้ his firm Neo Solutions, 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 the moment that Neo Remedies was “appointed from the NLC’s provide chain processes, as and when services are demanded”.