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 profitable bidder to operate South Africa’s lottery if the tenure of recent operator, Ithuba, ends in May next 12 months.
Ithuba’s licence was due to obtain expired in May possibly 2023 but was prolonged for two decades by Tau’s predecessor Ebrahim Patel after a request from the then recently-appointed board of the National Lotteries Commission (NLC).
The Board, which was dealing with the corruption that had overwhelmed the NLC, also suggested Patel of representations by Ithuba that it had been severely impacted with the Covid pandemic. This involved a ban over the sale of lottery tickets at the peak with the pandemic.
In terms of the extension, Ithuba experienced to make contributions to the NLC for distribution to superior will cause at an increased charge than supplied for of their First licence.
New licence operators are offered 6 months to create infrastructure, including ticket devices countrywide, to take in excess of in the past operator ahead of the incumbent’s licence ends. This most current postponement ensures that there won't be sufficient time for the clean changeover and It is unlikely that Tau will extend Ithuba’s licence once more.
The entire process of appointing a whole new licence operator has also been tormented by allegations of conflict of fascination and various difficulties.
GroundUp has figured out the NLC has contingency programs in place to carry on funding excellent leads to for nearly a 12 months When the lottery and the sale of lottery tickets are suspended.
The contingency also addresses funding in the function of litigation by getting rid of bidders each time a new operator is at last announced, which could also derail The sleek jogging of the lottery.
In the event ticket income are stopped, the NLC will use its reserves of R3.nine-billion to carry on funding qualifying organisations, a supply with familiarity with the contingency system explained to GroundUp.
In his weekend assertion saying the postponement, Tau explained: “Sad to say, I am not in a position to create a final decision at this time. Any these determination at the moment would in all good conscience signify that I haven't used my brain with due thought of all of the suitable elements.”
“I have discovered issues that demand further more evaluation. It might be inappropriate to disclose these difficulties now as well as their disclosure could very nicely prejudice the correct adjudication on the awarding with the licence.”
Tau reported he was awaiting information on The obvious way to ensure the continuation from the lottery within the interim and also the “improvement of the programme to finalise this process”.
This, he stated, must be finished soon after session Along with the National Treasury.”
Tau also hinted for the political makeup on the consortiums bidding for the licence as One more possible cause of the postponement.
He claimed: “I need to also make sure that the house owners and administrators of your effective applicants are, because the Act states, ‘suit and suitable individuals’. Moreover, I must make certain that no political get together or political Place of work-bearer has any immediate money fascination within the applicant or a shareholder with the applicant.”
Organization Working day documented Beforehand that a lot of of the businesses shortlisted to the tender are politically uncovered.
The Gold Hurry consortium is led by large-profile businessperson Sandile Zungu, who challenged for that ANC KwaZulu-Natal chair position in 2022 ahead of dropping out just after he didn't garner sufficient help, the paper described.
A further politically related bidder is HCI, which happens to be majority-owned from the South African Clothing and Textile Personnel’ Union, an affiliate of Cosatu, which happens to be in alliance While using the ANC. CEO Johnny Copelyn donated to President Cyril Ramaphosa’s CR17 campaign for the ANC presidency.
A further shortlisted bidder, In keeping with Small business Day, is Thebe Financial investment Corporation, which was Launched by ANC leaders in 1992. Thebe is half-owned by Batho Batho Have faith in. The trust has donated R60-million on the ANC since 2021, In accordance with declarations designed to the electoral Fee.
Ithuba, the holder of the licence, is additionally while in the jogging, as is Umbulelo Consortium, led by Afrirent Holdings; and Giya Online games, As outlined by Small business Working day.
Vivien Natasen consulted for Giya Video games on its bid. GroundUp reported in 2022 that Natasen, as a result ofตัว หวย his corporation Neo Methods, contributed R2-million towards the luxury mansion of the then-NLC chair Aflred Nevhutanda — whilst his business Neo Options experienced a agreement Together with the NLC. Natasen informed GroundUp At the moment that Neo Alternatives was “appointed throughout the NLC’s supply chain procedures, as and when providers are required”.