Announcement of new lottery licence operator postponed - yet again
Announcement of new lottery licence operator postponed - yet again
Blog Article
Parks Tau, the trade and industry minister, has postponed naming a winning bidder to run South Africa’s lottery when the tenure of present operator, Ithuba, finishes in May well following yr.
Ithuba’s licence was thanks to own expired in Might 2023 but was prolonged for 2 several years by Tau’s predecessor Ebrahim Patel following a request because of the then newly-appointed board on the Countrywide Lotteries Fee (NLC).
The Board, which was handling the corruption that experienced confused the NLC, also encouraged Patel of representations by Ithuba that it were seriously affected through the Covid pandemic. This provided a ban about the sale of lottery tickets at the peak on the pandemic.
With regard to the extension, Ithuba experienced to generate contributions on the NLC for distribution to very good brings about at a greater price than provided for of their Preliminary licence.
New licence operators are given 6 months to setup infrastructure, together with ticket devices countrywide, to choose in excess of from the preceding operator ahead of the incumbent’s licence ends. This most recent postponement ensures that there won't be sufficient time for any easy changeover and It can be not likely that Tau will increase Ithuba’s licence again.
The process of appointing a fresh licence operator has also been affected by allegations of conflict of fascination and various challenges.
GroundUp has acquired the NLC has contingency programs in place to carry on funding excellent leads to for up to a 12 months In the event the lottery and also the sale of lottery tickets are suspended.
The contingency also handles funding within the celebration of litigation by losing bidders every time a new operator is finally introduced, which could also derail The sleek functioning from the lottery.
In the event ticket profits 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 plan told GroundUp.
In his weekend assertion asserting the postponement, Tau reported: “Unfortunately, I'm not able to generate a ultimate selection at this stage. Any such conclusion right now would in all excellent conscience mean which i haven't utilized my mind with owing consideration of the many related things.”
“I have recognized issues that require even more analysis. It will be inappropriate to reveal these problems now and their disclosure could quite perfectly prejudice the proper adjudication from the awarding in the licence.”
Tau explained he was awaiting tips on the best way to make sure the continuation of your lottery during the interim as well as “progress of a programme to finalise this method”.
This, he explained, has to be done just after consultation with the Nationwide Treasury.”
Tau also hinted at the political makeup of your consortiums bidding for your licence as A further achievable reason behind the postponement.
He stated: “I have to also make sure the owners and professionals in the prosperous applicants are, given that the Act states, ‘in good shape and proper folks’. On top of that, I need to make sure no political bash or political Business-bearer has any direct monetary desire from the applicant or possibly a shareholder from the applicant.”
Organization Day noted Formerly that a lot of of the companies shortlisted for the tender are politically uncovered.
The Gold Rush consortium is led by superior-profile businessperson Sandile Zungu, who challenged to the ANC KwaZulu-Natal chair position in 2022 in advance of dropping out right after he did not garner sufficient support, the paper claimed.
An additional politically linked bidder is HCI, and that is vast majority-owned with the South African Garments and Textile Staff’ Union, an affiliate of Cosatu, and that is in alliance with the ANC. CEO Johnny Copelyn donated to President Cyril Ramaphosa’s CR17 marketing campaign to the ANC presidency.
Yet another shortlisted bidder, Based on Company Working day, is Thebe Financial investment Corporation, which was Launched by ANC leaders in 1992. Thebe is half-owned by Batho Batho Belief. The rely on has donated R60-million towards the ANC considering the fact that 2021, In line with declarations made for the electoral commission.
Ithuba, the holder with the licence, is also within the working, as is Umbulelo Consortium, led by Afrirent Holdings; and Giya Video games, In line with Small business Day.
Vivien Natasen consulted for Giya Video games on its bid. GroundUp reported in 2022 that Natasen, throughหวย ลาว ล่าสุด his corporation Neo Solutions, contributed R2-million in the direction of the luxury mansion from the then-NLC chair Aflred Nevhutanda — although his organization Neo Answers had a deal While using the NLC. Natasen explained to GroundUp at that time that Neo Options was “appointed through the NLC’s offer chain processes, as and when services are expected”.