Announcement of recent lottery licence operator postponed - all over again
Announcement of recent lottery licence operator postponed - all over again
Blog Article
Parks Tau, the trade and sector minister, has postponed naming a successful bidder to operate South Africa’s lottery if the tenure of recent operator, Ithuba, ends in May well following yr.
Ithuba’s licence was thanks to get expired in May 2023 but was extended for 2 many years by Tau’s predecessor Ebrahim Patel after a ask for from the then recently-appointed board of your National Lotteries Commission (NLC).
The Board, which was working with the corruption that experienced confused the NLC, also encouraged Patel of representations by Ithuba that it were seriously afflicted by the Covid pandemic. This integrated a ban around the sale of lottery tickets at the height of the pandemic.
When it comes to the extension, Ithuba had to make contributions into the NLC for distribution to superior will cause at a better charge than provided for inside their Preliminary licence.
New licence operators are specified six months to build infrastructure, like ticket equipment countrywide, to get around from your past operator before the incumbent’s licence ends. This most current postponement ensures that there won't be ample time to get a easy transition and It truly is unlikely that Tau will extend Ithuba’s licence again.
The process of appointing a new licence operator has also been stricken by allegations of conflict of fascination and various troubles.
GroundUp has acquired that the NLC has contingency strategies set up to carry on funding superior brings about for as many as a 12 months if the lottery as well as sale of lottery tickets are suspended.
The contingency also addresses funding while in the function of litigation by getting rid of bidders every time a new operator is ultimately declared, which could also derail The graceful operating on the lottery.
In the event ticket gross sales are stopped, the NLC will use its reserves of R3.9-billion to carry on funding qualifying organisations, a supply with knowledge of the contingency prepare told GroundUp.
In his weekend statement saying the postponement, Tau reported: “Sadly, I am not ready to create a last choice at this time. Any such conclusion right now would in all excellent conscience imply which i have not utilized my thoughts with thanks consideration of many of the suitable aspects.”
“I've recognized issues that demand further evaluation. It will be inappropriate to reveal these troubles now and their disclosure could very properly prejudice the appropriate adjudication in the awarding with the licence.”
Tau reported he was awaiting guidance on the best way to make sure the continuation of the lottery within the interim as well as the “advancement of a programme to finalise this process”.
This, he reported, need to be accomplished right after session with the Nationwide Treasury.”
Tau also hinted in the political make-up from the consortiums bidding with the licence as A different achievable reason behind the postponement.
He explained: “I need to also make sure that the homeowners and supervisors of your effective applicants are, since the Act states, ‘in shape and right people’. Also, I have to make certain that no political get together or political Place of work-bearer has any direct money fascination within the applicant or simply a shareholder with the applicant.”
Enterprise Working day noted Beforehand that many of the businesses shortlisted for the tender are politically exposed.
The Gold Hurry consortium is led by superior-profile businessperson Sandile Zungu, who challenged for your ANC KwaZulu-Natal chair situation in 2022 right before dropping out following he did not garner ample guidance, the paper claimed.
Another politically related bidder is HCI, which is vast majority-owned through the South African Clothes and Textile Workers’ Union, an affiliate of Cosatu, which is in alliance While using the ANC. CEO Johnny Copelyn donated to President Cyril Ramaphosa’s CR17 marketing campaign for your ANC presidency.
Another shortlisted bidder, In keeping with Organization Working day, is Thebe Financial commitment Corporation, which was Launched by ANC leaders in 1992. Thebe is 50 %-owned by Batho Batho Have confidence in. The trust has donated R60-million on the ANC since 2021, In accordance with declarations designed into the electoral Fee.
Ithuba, the holder of the licence, can also be inside the working, as is Umbulelo Consortium, led by Afrirent Holdings; and Giya Video games, In line with Organization Day.
Vivien Natasen consulted for Giya Games on its bid. GroundUp described in 2022 that Natasen, by way ofhihuay his enterprise Neo Solutions, contributed R2-million towards the luxury mansion of the then-NLC chair Aflred Nevhutanda — while his company Neo Solutions experienced a contract Using the NLC. Natasen told GroundUp At the moment that Neo Answers was “appointed through the NLC’s offer chain processes, as and when expert services are necessary”.