Announcement of recent lottery licence operator postponed - once more
Announcement of recent lottery licence operator postponed - once more
Blog Article
Parks Tau, the trade and field minister, has postponed naming a successful bidder to operate South Africa’s lottery once the tenure of current operator, Ithuba, ends in May well next yr.
Ithuba’s licence was owing to obtain expired in May 2023 but was extended for two a long time by Tau’s predecessor Ebrahim Patel after a request from the then recently-appointed board on the National Lotteries Fee (NLC).
The Board, which was dealing with the corruption that experienced overcome the NLC, also suggested Patel of representations by Ithuba that it had been seriously impacted by the Covid pandemic. This included a ban to the sale of lottery tickets at the peak in the pandemic.
With regards to the extension, Ithuba experienced to create contributions to your NLC for distribution to excellent will cause at a higher charge than furnished for of their initial licence.
New licence operators are provided six months to put in place infrastructure, which include ticket equipment countrywide, to take over from the former operator prior to the incumbent’s licence ends. This latest postponement ensures that there will not be sufficient time for the easy changeover and It really is not likely that Tau will lengthen Ithuba’s licence all over again.
The entire process of appointing a brand new licence operator has also been tormented by allegations of conflict of interest and other troubles.
GroundUp has acquired that the NLC has contingency ideas in place to continue funding very good will cause for up to a year When the lottery along with the sale of lottery tickets are suspended.
The contingency also addresses funding inside the occasion of litigation by losing bidders any time a new operator is at last announced, which could also derail The graceful jogging in the lottery.
In case ticket gross sales are stopped, the NLC will use its reserves of R3.nine-billion to continue funding qualifying organisations, a supply with expertise in the contingency prepare told GroundUp.
In his weekend statement saying the postponement, Tau said: “Sad to say, I am not in a position for making a final determination at this time. Any such determination presently would in all good conscience suggest that I have not applied my thoughts with because of consideration of each of the relevant elements.”
“I've determined matters that require further more evaluation. It would be inappropriate to reveal these problems now as well as their disclosure could quite nicely prejudice the right adjudication in the awarding of your licence.”
Tau mentioned he was awaiting information on the best way to ensure the continuation on the lottery in the interim plus the “development of a programme to finalise this process”.
This, he stated, has to be accomplished immediately after session While using the Countrywide Treasury.”
Tau also hinted for the political make-up in the consortiums bidding with the licence as A different doable basis for the postponement.
He stated: “I need to also be certain that the proprietors and administrators in the effective applicants are, as being the Act states, ‘suit and good persons’. Also, I need to make sure no political social gathering or political Workplace-bearer has any immediate financial desire inside the applicant or maybe a shareholder of the applicant.”
Enterprise Day noted Formerly that a lot of of the businesses shortlisted to the tender are politically exposed.
The Gold Hurry consortium is led by superior-profile businessperson Sandile Zungu, who challenged with the ANC KwaZulu-Natal chair situation in 2022 in advance of dropping out immediately after he failed to garner enough help, the paper noted.
An additional politically linked bidder is HCI, that is the vast majority-owned through the South African Garments and Textile Workers’ Union, an affiliate of Cosatu, that's in alliance with the ANC. CEO Johnny Copelyn donated to President Cyril Ramaphosa’s CR17 campaign for your ANC presidency.
One more shortlisted bidder, according to Company Day, is Thebe Investment decision Corporation, which was founded by ANC leaders in 1992. Thebe is half-owned by Batho Batho Trust. The trust has donated R60-million into the ANC since 2021, according to declarations built to your electoral commission.
Ithuba, the holder of your licence, is likewise within the functioning, as is Umbulelo Consortium, led by Afrirent Holdings; and Giya Online games, In accordance with Business enterprise Day.
Vivien Natasen consulted for Giya Online games on its bid. GroundUp claimed in 2022 that Natasen, by means ofผล หวย ลาว his corporation Neo Answers, contributed R2-million towards the posh mansion of your then-NLC chair Aflred Nevhutanda — although his enterprise Neo Options had a agreement with the NLC. Natasen informed GroundUp at that time that Neo Options was “appointed with the NLC’s provide chain processes, as and when companies are expected”.
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