Announcement of latest lottery licence operator postponed - once more
Announcement of latest lottery licence operator postponed - once more
Blog Article
Parks Tau, the trade and industry minister, has postponed naming a profitable bidder to operate South Africa’s lottery if the tenure of recent operator, Ithuba, ends in May upcoming yr.
Ithuba’s licence was thanks to own expired in May 2023 but was extended for 2 a long time by Tau’s predecessor Ebrahim Patel following a ask for through the then freshly-appointed board of the National Lotteries Commission (NLC).
The Board, which was addressing the corruption that had overwhelmed the NLC, also advised Patel of representations by Ithuba that it had been severely affected through the Covid pandemic. This provided a ban about the sale of lottery tickets at the height in the pandemic.
With regard to the extension, Ithuba experienced to generate contributions on the NLC for distribution to excellent triggers at a higher level than furnished for within their Original licence.
New licence operators are presented six months to put in place infrastructure, such as ticket equipment countrywide, to consider around from your former operator before the incumbent’s licence ends. This most current postponement ensures that there will not be sufficient time for any easy transition and It can be not likely that Tau will prolong Ithuba’s licence all over again.
The whole process of appointing a new licence operator has also been suffering from allegations of conflict of interest along with other concerns.
GroundUp has realized that the NLC has contingency options in position to continue funding fantastic brings about for around a calendar year In case the 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 functioning from the lottery.
In the event ticket income are stopped, the NLC will use its reserves of R3.nine-billion to carry on funding qualifying organisations, a supply with familiarity with the contingency system explained to GroundUp.
In his weekend assertion saying the postponement, Tau explained: “However, I am not in a position to help make a remaining determination at this time. Any this kind of conclusion at this time would in all very good conscience signify which i have not applied my brain with due thing to consider of the many applicable things.”
“I've identified issues that have to have even more evaluation. It could be inappropriate to reveal these troubles now and their disclosure could pretty perfectly prejudice the correct adjudication on the awarding from the licence.”
Tau stated he was awaiting information on the best way to ensure the continuation in the lottery during the interim as well as the “progress of a programme to finalise this method”.
This, he reported, has to be completed soon after consultation While using the Nationwide Treasury.”
Tau also hinted for the political make-up with the consortiums bidding for your licence as An additional possible basis for the postponement.
He said: “I have to also make sure that the entrepreneurs and professionals of the thriving applicants are, because the Act states, ‘in good shape and appropriate folks’. Moreover, I need to be certain that no political get together or political office-bearer has any immediate monetary curiosity while in the applicant or simply a shareholder of the applicant.”
Enterprise Day claimed Beforehand that most of the businesses shortlisted to the tender are politically exposed.
The Gold Rush consortium is led by large-profile businessperson Sandile Zungu, who challenged for the ANC KwaZulu-Natal chair situation in 2022 ahead of dropping out soon after he failed to garner plenty of help, the paper noted.
A different politically connected bidder is HCI, which can be bulk-owned via the South African Clothing and Textile Employees’ Union, an affiliate of Cosatu, that's in alliance Using the ANC. CEO Johnny Copelyn donated to President Cyril Ramaphosa’s CR17 campaign for the ANC presidency.
One more shortlisted bidder, As outlined by Business enterprise Working day, is Thebe Investment Company, which was Started by ANC leaders in 1992. Thebe is half-owned by Batho Batho Belief. The belief has donated R60-million towards the ANC because 2021, Based on declarations built on the electoral Fee.
Ithuba, the holder in the licence, is also from the operating, as is Umbulelo Consortium, led by Afrirent Holdings; and Giya Online games, according to Enterprise Day.
Vivien Natasen consulted for Giya Video games on its bid. GroundUp noted in 2022 that Natasen, as a result ofตรวจ หวย ผล สลากกินแบ่ง รัฐบาล งวด his business Neo Remedies, contributed R2-million towards the luxury mansion in the then-NLC chair Aflred Nevhutanda — even though his enterprise Neo Options had a contract With all the NLC. Natasen advised GroundUp at that time that Neo Answers was “appointed throughout the NLC’s supply chain procedures, as and when services are required”.