Announcement of latest lottery licence operator postponed - yet again
Announcement of latest lottery licence operator postponed - yet again
Blog Article
Parks Tau, the trade and industry minister, has postponed naming a successful bidder to run South Africa’s lottery once the tenure of present operator, Ithuba, finishes in May perhaps upcoming yr.
Ithuba’s licence was thanks to own expired in May 2023 but was prolonged for 2 yrs by Tau’s predecessor Ebrahim Patel after a request by the then recently-appointed board of your National Lotteries Commission (NLC).
The Board, which was addressing the corruption that experienced overwhelmed the NLC, also advised Patel of representations by Ithuba that it had been severely affected through the Covid pandemic. This provided a ban to the sale of lottery tickets at the peak on the pandemic.
In terms of the extension, Ithuba experienced to help make contributions into the NLC for distribution to superior will cause at an increased fee than offered for of their First licence.
New licence operators are offered 6 months to create infrastructure, such as ticket devices countrywide, to get around through the former operator before the incumbent’s licence finishes. This hottest postponement implies that there will not be enough time for a smooth transition and It really is unlikely that Tau will extend Ithuba’s licence once more.
The whole process of appointing a completely new licence operator has also been affected by allegations of conflict of fascination along with other difficulties.
GroundUp has acquired which the NLC has contingency plans set up to carry on funding great leads to for nearly a calendar year When the lottery as well as the sale of lottery tickets are suspended.
The contingency also covers funding during the function of litigation by dropping bidders when a new operator is at last introduced, which could also derail The graceful managing on the lottery.
In case ticket product sales are stopped, the NLC will use its reserves of R3.nine-billion to carry on funding qualifying organisations, a source with expertise in the contingency prepare told GroundUp.
In his weekend statement announcing the postponement, Tau explained: “Unfortunately, I am not able to produce a remaining choice at this stage. Any these decision at this time would in all very good conscience indicate that I haven't applied my intellect with because of consideration of all of the related factors.”
“I have identified issues that call for more analysis. It might be inappropriate to reveal these troubles now and their disclosure could pretty perfectly prejudice the right adjudication of the awarding on the licence.”
Tau stated he was awaiting assistance on the best way to ensure the continuation with the lottery inside the interim and the “growth of the programme to finalise this process”.
This, he claimed, must be completed just after session While using the Countrywide Treasury.”
Tau also hinted within the political make-up in the consortiums bidding for the licence as another doable basis for the postponement.
He mentioned: “I need to also be sure that the owners and supervisors from the successful applicants are, since the Act states, ‘fit and right folks’. Furthermore, I have to ensure that no political celebration or political Business office-bearer has any immediate economical desire during the applicant or perhaps a shareholder from the applicant.”
Enterprise Working day reported Beforehand that the majority of of the businesses shortlisted for your tender are politically uncovered.
The Gold Rush consortium is led by high-profile businessperson Sandile Zungu, who challenged to the ANC KwaZulu-Natal chair position in 2022 in advance of dropping out soon after he didn't garner adequate aid, the paper noted.
One more politically related bidder is HCI, which is the greater part-owned by the South African Clothes and Textile Employees’ Union, an affiliate of Cosatu, that's in alliance While using the ANC. CEO Johnny Copelyn donated to President Cyril Ramaphosa’s CR17 marketing campaign for that ANC presidency.
A different shortlisted bidder, As outlined by Small business Day, is Thebe Investment decision Company, which was Established by ANC leaders in 1992. Thebe is 50 percent-owned by Batho Batho Have faith in. The rely on has donated R60-million for the ANC because 2021, In keeping with declarations manufactured to the electoral Fee.
Ithuba, the holder of the licence, is also while in the running, as is Umbulelo Consortium, led by Afrirent Holdings; and Giya Video games, As outlined by Business Working day.
Vivien Natasen consulted for Giya Game titles on its bid. GroundUp described in 2022 that Natasen, byruay his company Neo Options, contributed R2-million in direction of the posh mansion in the then-NLC chair Aflred Nevhutanda — even though his firm Neo Remedies had a deal While using the NLC. Natasen instructed GroundUp at that time that Neo Solutions was “appointed in the NLC’s provide chain procedures, as and when expert services are needed”.