Announcement of new lottery licence operator postponed - again
Announcement of new lottery licence operator postponed - again
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Parks Tau, the trade and sector minister, has postponed naming a successful bidder to operate South Africa’s lottery if the tenure of latest operator, Ithuba, finishes in May possibly following yr.
Ithuba’s licence was because of to have expired in May well 2023 but was extended for two decades by Tau’s predecessor Ebrahim Patel after a request via the then newly-appointed board on the Countrywide Lotteries Fee (NLC).
The Board, which was managing the corruption that experienced confused the NLC, also encouraged Patel of representations by Ithuba that it were seriously afflicted via the Covid pandemic. This included a ban around 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 good results in at an increased fee than supplied for of their Preliminary licence.
New licence operators are given six months to set up infrastructure, which include ticket machines countrywide, to acquire more than with the prior operator prior to the incumbent’s licence finishes. This latest postponement implies that there won't be enough time for just a smooth transition and It's 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 together with other difficulties.
GroundUp has uncovered that the NLC has contingency plans set up to continue funding good will cause for around a year If your lottery as well as the sale of lottery tickets are suspended.
The contingency also handles funding inside the party of litigation by losing bidders every time a new operator is finally announced, which could also derail The sleek jogging of the lottery.
In case ticket product sales are stopped, the NLC will use its reserves of R3.9-billion to continue funding qualifying organisations, a source with understanding of the contingency program advised GroundUp.
In his weekend statement announcing the postponement, Tau stated: “Sadly, I'm not able to generate a ultimate selection at this time. Any these types of final decision at the moment would in all good conscience signify that I have not used my thoughts with thanks consideration of many of the pertinent things.”
“I have recognized matters that involve additional evaluation. It could be inappropriate to reveal these challenges now as well as their disclosure could extremely effectively prejudice the correct adjudication on the awarding with the licence.”
Tau claimed he was awaiting information on The obvious way to ensure the continuation from the lottery in the interim and the “development of the programme to finalise this process”.
This, he reported, have to be carried out after consultation Using the Nationwide Treasury.”
Tau also hinted at the political makeup with the consortiums bidding for your licence as A different possible basis for the postponement.
He claimed: “I need to also make sure that the homeowners and supervisors with the successful applicants are, as the Act states, ‘match and correct persons’. Additionally, I need to make sure no political bash or political Business-bearer has any immediate monetary interest from the applicant or possibly a shareholder from the applicant.”
Business enterprise Day claimed Formerly that the majority of of the companies shortlisted for that tender are politically uncovered.
The Gold Rush consortium is led by large-profile businessperson Sandile Zungu, who challenged with the ANC KwaZulu-Natal chair position in 2022 just before dropping out immediately after he didn't garner enough help, the paper documented.
One more politically linked bidder is HCI, that's the 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 campaign for that ANC presidency.
One more shortlisted bidder, In accordance with Business Working day, is Thebe Expense Company, which was Established by ANC leaders in 1992. Thebe is fifty percent-owned by Batho Batho Belief. The have confidence in has donated R60-million into the ANC given that 2021, In keeping with declarations produced for 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, throughตรวจ หวย ย้อน หลัง his firm Neo Alternatives, contributed R2-million to the luxurious mansion of your then-NLC chair Aflred Nevhutanda — while his company Neo Solutions experienced a agreement Together with the NLC. Natasen informed GroundUp at that time that Neo Alternatives was “appointed throughout the NLC’s supply chain procedures, as and when companies are needed”.