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 business minister, has postponed naming a winning bidder to run South Africa’s lottery once the tenure of recent operator, Ithuba, ends in May perhaps upcoming 12 months.
Ithuba’s licence was due to have expired in May perhaps 2023 but was extended for 2 several years by Tau’s predecessor Ebrahim Patel after a request from the then freshly-appointed board with the Countrywide Lotteries Commission (NLC).
The Board, which was addressing the corruption that had confused the NLC, also advised Patel of representations by Ithuba that it had been severely afflicted through the Covid pandemic. This included a ban within the sale of lottery tickets at the peak with the pandemic.
With regards to the extension, Ithuba experienced to make contributions to the NLC for distribution to great leads to at a greater charge than furnished for inside their Preliminary licence.
New licence operators are provided six months to arrange infrastructure, together with ticket devices countrywide, to get in excess of from your prior operator prior to the incumbent’s licence finishes. This most up-to-date postponement implies that there won't be ample time to get a clean changeover and It is unlikely that Tau will lengthen Ithuba’s licence once again.
The whole process of appointing a new licence operator has also been plagued by allegations of conflict of interest together with other challenges.
GroundUp has discovered that the NLC has contingency plans set up to continue funding very good triggers for around a calendar year If your lottery plus the sale of lottery tickets are suspended.
The contingency also covers funding during the occasion of litigation by getting rid of bidders each time a new operator is lastly introduced, which could also derail The graceful working with the lottery.
In case ticket income 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 strategy informed GroundUp.
In his weekend statement announcing the postponement, Tau stated: “However, I am not in a position to produce a ultimate final decision at this time. Any these kinds of selection at this time would in all good conscience necessarily mean which i have not utilized my thoughts with thanks thought of all the applicable aspects.”
“I've identified matters that require even more analysis. It might be inappropriate to reveal these problems now as well as their disclosure could pretty very well prejudice the appropriate adjudication of the awarding in the licence.”
Tau claimed he was awaiting information on The ultimate way to make sure the continuation with the lottery during the interim and the “development of the programme to finalise this method”.
This, he explained, has to be carried out after session With all the Countrywide Treasury.”
Tau also hinted with the political make-up on the consortiums bidding for the licence as A different feasible cause for the postponement.
He stated: “I have to also make sure the proprietors and supervisors with the successful applicants are, because the Act states, ‘suit and suitable people’. Also, I need to be sure that no political bash or political Workplace-bearer has any direct financial desire from the applicant or possibly a shareholder on the applicant.”
Enterprise Working day documented Beforehand that a lot of 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 right before dropping out right after he did not garner more than enough assistance, the paper documented.
A different politically related bidder is HCI, which happens to be vast majority-owned because of the South African Clothing and Textile Workers’ Union, an affiliate of Cosatu, which can be in alliance While using the ANC. CEO Johnny Copelyn donated to President Cyril Ramaphosa’s CR17 marketing campaign for the ANC presidency.
One more shortlisted bidder, As outlined by Business enterprise Working day, is Thebe Financial investment Corporation, which was Established by ANC leaders in 1992. Thebe is 50 percent-owned by Batho Batho Believe in. The have confidence in has donated R60-million towards the ANC considering that 2021, In accordance with declarations made to your electoral commission.
Ithuba, the holder on the licence, can also be from the operating, as is Umbulelo Consortium, led by Afrirent Holdings; and Giya Video games, according to Organization Working day.
Vivien Natasen consulted for Giya Game titles on its bid. GroundUp reported in 2022 that Natasen, viafox888 his corporation Neo Methods, contributed R2-million in direction of the posh mansion of your then-NLC chair Aflred Nevhutanda — whilst his organization Neo Alternatives experienced a agreement While using the NLC. Natasen explained to GroundUp At the moment that Neo Alternatives was “appointed from the NLC’s offer chain processes, as and when solutions are required”.