Announcement of new lottery licence operator postponed - yet again
Announcement of new lottery licence operator postponed - yet again
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Parks Tau, the trade and business minister, has postponed naming a successful bidder to run South Africa’s lottery once the tenure of recent operator, Ithuba, ends in Might next 12 months.
Ithuba’s licence was due to acquire expired in Could 2023 but was prolonged for 2 several years by Tau’s predecessor Ebrahim Patel following a ask for because of the then freshly-appointed board in the Nationwide Lotteries Fee (NLC).
The Board, which was coping with the corruption that had overwhelmed the NLC, also suggested 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 height in the pandemic.
With regard to the extension, Ithuba had to produce contributions for the NLC for distribution to excellent leads to at a higher level than furnished for within their Original licence.
New licence operators are provided 6 months to create infrastructure, including ticket devices countrywide, to take in excess of from the earlier operator ahead of the incumbent’s licence finishes. This newest postponement signifies that there won't be enough time for a smooth transition and It really is unlikely that Tau will lengthen Ithuba’s licence once again.
The entire process of appointing a different licence operator has also been stricken by allegations of conflict of desire and other issues.
GroundUp has acquired the NLC has contingency programs in place to carry on funding excellent causes for nearly a yr When the lottery as well as sale of lottery tickets are suspended.
The contingency also addresses funding during the occasion of litigation by getting rid of bidders when a new operator is last but not least declared, which could also derail the smooth working with the lottery.
In the event that ticket revenue are stopped, the NLC will use its reserves of R3.9-billion to continue funding qualifying organisations, a source with knowledge of the contingency strategy informed GroundUp.
In his weekend statement asserting the postponement, Tau reported: “Unfortunately, I'm not able to produce a last decision at this time. Any these selection at this time would in all fantastic conscience suggest which i have not utilized my mind with because of thing to consider of every one of the relevant variables.”
“I've identified matters that call for further evaluation. It might be inappropriate to disclose these troubles now as well as their disclosure could very nicely prejudice the correct adjudication in the awarding on the licence.”
Tau explained he was awaiting assistance on The simplest way to ensure the continuation of your lottery during the interim as well as “progress of a programme to finalise this method”.
This, he explained, should be done immediately after consultation While using the National Treasury.”
Tau also hinted within the political makeup on the consortiums bidding for the licence as One more probable cause of the postponement.
He claimed: “I need to also make sure that the homeowners and supervisors with the thriving applicants are, as the Act states, ‘match and correct persons’. Additionally, I must ensure that no political party or political office-bearer has any immediate economic desire from the applicant or possibly a shareholder from the applicant.”
Business Day claimed Formerly that most of the companies shortlisted for that tender are politically uncovered.
The Gold Rush consortium is led by substantial-profile businessperson Sandile Zungu, who challenged with the ANC KwaZulu-Natal chair position in 2022 ahead of dropping out just after he didn't garner sufficient help, the paper documented.
A different politically linked bidder is HCI, and that is the vast majority-owned via the South African Outfits and Textile Staff’ Union, an affiliate of Cosatu, that's in alliance Together with the ANC. CEO Johnny Copelyn donated to President Cyril Ramaphosa’s CR17 campaign with the ANC presidency.
One more shortlisted bidder, In accordance with Company Working day, is Thebe Investment decision Company, which was founded by ANC leaders in 1992. Thebe is fifty percent-owned by Batho Batho Trust. The have faith in has donated R60-million to the ANC given that 2021, In keeping with declarations produced for the electoral commission.
Ithuba, the holder on the licence, is likewise during the functioning, as is Umbulelo Consortium, led by Afrirent Holdings; and Giya Game titles, according to Business Working day.
Vivien Natasen consulted for Giya Video games on its bid. GroundUp noted in 2022 that Natasen, throughruay his company Neo Options, contributed R2-million in the direction of the luxury mansion from the then-NLC chair Aflred Nevhutanda — whilst his business Neo Options experienced a agreement Together with the NLC. Natasen informed GroundUp At the moment that Neo Alternatives was “appointed throughout the NLC’s supply chain processes, as and when solutions are demanded”.