Announcement of new lottery licence operator postponed - again
Announcement of new lottery licence operator postponed - again
Blog Article
Parks Tau, the trade and field minister, has postponed naming a profitable bidder to operate South Africa’s lottery if the tenure of latest operator, Ithuba, ends in Might future 12 months.
Ithuba’s licence was due to obtain expired in May possibly 2023 but was prolonged for two decades by Tau’s predecessor Ebrahim Patel after a request by the then recently-appointed board with the National Lotteries Commission (NLC).
The Board, which was working with the corruption that experienced confused the NLC, also advised Patel of representations by Ithuba that it had been severely affected through the Covid pandemic. This involved a ban over the sale of lottery tickets at the peak with the pandemic.
In terms of the extension, Ithuba experienced to help make contributions into the NLC for distribution to superior results in at an increased fee than offered for in their First licence.
New licence operators are provided 6 months to create infrastructure, such as ticket equipment countrywide, to consider about from your former operator before the incumbent’s licence ends. This most up-to-date postponement means that there will not be adequate time for your sleek changeover and It is unlikely that Tau will extend Ithuba’s licence once more.
The entire process of appointing a different licence operator has also been stricken by allegations of conflict of fascination and other issues.
GroundUp has learned which the NLC has contingency options in place to continue funding excellent results in for nearly a calendar year When the lottery along with the sale of lottery tickets are suspended.
The contingency also addresses funding while in the occasion of litigation by getting rid of bidders every time a new operator is ultimately declared, which could also derail the smooth working on the lottery.
Just in case ticket revenue are stopped, the NLC will use its reserves of R3.nine-billion to carry on funding qualifying organisations, a source with familiarity with the contingency plan informed GroundUp.
In his weekend statement announcing the postponement, Tau mentioned: “Regretably, I'm not ready to create a final selection at this stage. Any this kind of determination at the moment would in all excellent conscience indicate that I haven't utilized my mind with owing consideration of each of the relevant variables.”
“I've identified matters that have to have more analysis. It will be inappropriate to reveal these problems now and their disclosure could quite nicely prejudice the correct adjudication with the awarding of the licence.”
Tau stated he was awaiting tips on The obvious way to make sure the continuation of your lottery within the interim along with the “progress of the programme to finalise this process”.
This, he stated, has to be performed soon after consultation with the Countrywide Treasury.”
Tau also hinted for the political makeup of your consortiums bidding to the licence as Yet another possible cause for the postponement.
He stated: “I have to also make certain that the entrepreneurs and administrators in the thriving applicants are, because the Act states, ‘healthy and correct folks’. Moreover, I need to be sure that no political party or political Place of work-bearer has any direct economic curiosity within the applicant or perhaps a shareholder of the applicant.”
Business Working day claimed Beforehand that most of the businesses shortlisted to the tender are politically exposed.
The Gold Hurry consortium is led by substantial-profile businessperson Sandile Zungu, who challenged for your ANC KwaZulu-Natal chair place in 2022 prior to dropping out after he failed to garner enough assist, the paper claimed.
An additional politically linked bidder is HCI, which happens to be vast majority-owned through the South African Apparel and Textile Employees’ Union, an affiliate of Cosatu, and that is in alliance While using the ANC. CEO Johnny Copelyn donated to President Cyril Ramaphosa’s CR17 campaign for the ANC presidency.
An additional shortlisted bidder, Based on Company Working day, is Thebe Financial investment Company, which was Started by ANC leaders in 1992. Thebe is half-owned by Batho Batho Rely on. The rely on has donated R60-million for the ANC since 2021, As outlined by declarations produced on the electoral Fee.
Ithuba, the holder from the licence, can be during the working, as is Umbulelo Consortium, led by Afrirent Holdings; and Giya Online games, In keeping with Company Day.
Vivien Natasen consulted for Giya Game titles on its bid. GroundUp claimed in 2022 that Natasen, as a result ofผล หวย หุ้น his enterprise Neo Options, contributed R2-million in direction of the posh mansion on the then-NLC chair Aflred Nevhutanda — even though his firm Neo Remedies had a deal While 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 expected”.