Announcement of new lottery licence operator postponed - once more
Announcement of new lottery licence operator postponed - once more
Blog Article
Parks Tau, the trade and market minister, has postponed naming a successful bidder to run South Africa’s lottery if the tenure of existing operator, Ithuba, ends in Might future 12 months.
Ithuba’s licence was due to obtain expired in May perhaps 2023 but was prolonged for two years by Tau’s predecessor Ebrahim Patel after a ask for via the then recently-appointed board of your National Lotteries Commission (NLC).
The Board, which was addressing the corruption that had overwhelmed the NLC, also recommended Patel of representations by Ithuba that it were severely influenced because of 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 generate contributions for the NLC for distribution to excellent triggers at a higher rate than supplied for in their First licence.
New licence operators are provided 6 months to build infrastructure, like ticket machines countrywide, to acquire in excess of in the past operator before the incumbent’s licence finishes. This latest postponement signifies that there won't be adequate time for just a easy changeover and It is actually unlikely that Tau will lengthen Ithuba’s licence yet again.
The whole process of appointing a fresh licence operator has also been tormented by allegations of conflict of fascination as well as other problems.
GroundUp has discovered that the NLC has contingency designs in position to continue funding good results in for nearly a 12 months In the event the lottery and also the sale of lottery tickets are suspended.
The contingency also handles funding while in the event of litigation by shedding bidders when a new operator is eventually declared, which could also derail the smooth jogging from the lottery.
In the event ticket gross sales are stopped, the NLC will use its reserves of R3.9-billion to continue funding qualifying organisations, a supply with familiarity with the contingency approach informed GroundUp.
In his weekend statement announcing the postponement, Tau stated: “However, I am not in a position to create a last determination at this stage. Any this sort of determination at the moment would in all great conscience suggest which i have not used my head with due thing to consider of each of the related things.”
“I have discovered matters that involve even more analysis. It would be inappropriate to disclose these troubles now as well as their disclosure could extremely properly prejudice the appropriate adjudication of your awarding of the licence.”
Tau said he was awaiting guidance on the best way to make sure the continuation with the lottery from the interim plus the “growth of a programme to finalise this method”.
This, he mentioned, should be finished soon after consultation While using the National Treasury.”
Tau also hinted within the political makeup on the consortiums bidding for your licence as A different possible basis for the postponement.
He reported: “I must also make certain that the house owners and managers from the prosperous applicants are, given that the Act states, ‘match and correct individuals’. Furthermore, I must make certain that no political get together or political Office environment-bearer has any direct monetary desire during the applicant or maybe a shareholder on the applicant.”
Organization Working day described previously that the majority of of the companies shortlisted for your tender are politically uncovered.
The Gold Rush consortium is led by significant-profile businessperson Sandile Zungu, who challenged to the ANC KwaZulu-Natal chair posture in 2022 ahead of dropping out right after he did not garner enough assist, the paper claimed.
An additional politically connected bidder is HCI, that's the vast majority-owned from the South African Clothing and Textile Workers’ Union, an affiliate of Cosatu, which is in alliance Using the ANC. CEO Johnny Copelyn donated to President Cyril Ramaphosa’s CR17 marketing campaign for that ANC presidency.
One more shortlisted bidder, In line with Organization Day, is Thebe Investment Company, which was founded by ANC leaders in 1992. Thebe is 50 percent-owned by Batho Batho Believe in. The rely on has donated R60-million for the ANC since 2021, In line with declarations built towards the electoral commission.
Ithuba, the holder on the licence, is likewise in the operating, as is Umbulelo Consortium, led by Afrirent Holdings; and Giya Video games, In accordance with Enterprise Day.
Vivien Natasen consulted for Giya Games on its bid. GroundUp claimed in 2022 that Natasen, as a result ofltpbet his corporation Neo Methods, contributed R2-million towards the luxurious mansion of your then-NLC chair Aflred Nevhutanda — though his enterprise Neo Methods had a contract Using the NLC. Natasen explained to GroundUp At the moment that Neo Options was “appointed through the NLC’s offer chain processes, as and when products and services are essential”.