Announcement of new lottery licence operator postponed - all over again
Announcement of new lottery licence operator postponed - all over again
Blog Article
Parks Tau, the trade and market minister, has postponed naming a successful bidder to run South Africa’s lottery when the tenure of present operator, Ithuba, finishes in May well up coming calendar year.
Ithuba’s licence was owing to possess expired in May well 2023 but was extended for two years by Tau’s predecessor Ebrahim Patel after a request by the then recently-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 were seriously afflicted by the Covid pandemic. This integrated a ban within the sale of lottery tickets at the height of the pandemic.
With regards to the extension, Ithuba had to create contributions towards the NLC for distribution to great causes at the next amount than presented for in their Original licence.
New licence operators are supplied six months to set up infrastructure, which includes ticket devices countrywide, to acquire more than from the former operator ahead of the incumbent’s licence finishes. This hottest postponement means that there won't be ample time for just a clean transition and It really is not likely that Tau will extend Ithuba’s licence once more.
The entire process of appointing a whole new licence operator has also been plagued by allegations of conflict of interest along with other troubles.
GroundUp has uncovered the NLC has contingency programs in place to carry on funding very good triggers for around a year Should the lottery as well as sale of lottery tickets are suspended.
The contingency also addresses funding in the celebration of litigation by losing bidders each time a new operator is lastly introduced, which could also derail The graceful working of your lottery.
In case ticket profits are stopped, the NLC will use its reserves of R3.nine-billion to carry on funding qualifying organisations, a resource with knowledge of the contingency prepare instructed GroundUp.
In his weekend assertion asserting the postponement, Tau stated: “However, I'm not ready to make a remaining choice at this stage. Any these conclusion presently would in all great conscience mean which i have not used my brain with due thing to consider of every one of the pertinent elements.”
“I've identified matters that require further evaluation. It could be inappropriate to disclose these difficulties now as well as their disclosure could extremely properly prejudice the right adjudication of the awarding from the licence.”
Tau mentioned he was awaiting assistance on The obvious way to make sure the continuation on the lottery while in the interim along with the “growth of a programme to finalise this method”.
This, he mentioned, must be performed soon after session Along with the National Treasury.”
Tau also hinted for the political make-up in the consortiums bidding with the licence as Yet another doable reason for the postponement.
He mentioned: “I have to also make sure the owners and professionals in the prosperous applicants are, as being the Act states, ‘in good shape and good folks’. On top of that, I need to be sure that no political occasion or political Office environment-bearer has any direct financial fascination while in the applicant or perhaps a shareholder of your applicant.”
Small business Day documented previously that a lot of of the companies shortlisted to the tender are politically uncovered.
The Gold Hurry consortium is led by higher-profile businessperson Sandile Zungu, who challenged for that ANC KwaZulu-Natal chair posture in 2022 prior to dropping out immediately after he didn't garner enough assistance, the paper noted.
One more politically linked bidder is HCI, that's greater part-owned because of the South African Garments and Textile Employees’ Union, an affiliate of Cosatu, which can be in alliance With all the ANC. CEO Johnny Copelyn donated to President Cyril Ramaphosa’s CR17 marketing campaign for that ANC presidency.
Yet another shortlisted bidder, In accordance with Business Day, is Thebe Expense Company, which was Established by ANC leaders in 1992. Thebe is fifty percent-owned by Batho Batho Rely on. The believe in has donated R60-million to your ANC because 2021, As outlined by declarations made towards the electoral commission.
Ithuba, the holder in the licence, can be from the functioning, as is Umbulelo Consortium, led by Afrirent Holdings; and Giya Game titles, In keeping with Business enterprise Working day.
Vivien Natasen consulted for Giya Video games on its bid. GroundUp reported in 2022 that Natasen, throughcat888 his enterprise Neo Solutions, contributed R2-million towards the luxury mansion from the then-NLC chair Aflred Nevhutanda — whilst his organization Neo Answers had a deal with the NLC. Natasen explained to GroundUp At the moment that Neo Remedies was “appointed with the NLC’s supply chain processes, as and when providers are required”.