Announcement of recent lottery licence operator postponed - again
Announcement of recent lottery licence operator postponed - again
Blog Article
Parks Tau, the trade and business minister, has postponed naming a winning bidder to operate South Africa’s lottery if the tenure of existing operator, Ithuba, finishes in May well following year.
Ithuba’s licence was owing to possess expired in May well 2023 but was extended for two yrs by Tau’s predecessor Ebrahim Patel after a request because of the then newly-appointed board in the Countrywide Lotteries Fee (NLC).
The Board, which was coping with the corruption that had overcome the NLC, also recommended Patel of representations by Ithuba that it had been severely impacted with the Covid pandemic. This involved a ban to the sale of lottery tickets at the peak in the pandemic.
With regard to the extension, Ithuba had to produce contributions for the NLC for distribution to great causes at an increased fee than supplied for of their Preliminary licence.
New licence operators are given six months to arrange infrastructure, like ticket equipment countrywide, to get around from your past operator before the incumbent’s licence finishes. This latest postponement signifies that there won't be sufficient time for your sleek transition and It can be unlikely that Tau will prolong Ithuba’s licence again.
The entire process of appointing a fresh licence operator has also been plagued by allegations of conflict of curiosity as well as other challenges.
GroundUp has realized the NLC has contingency strategies in position to continue funding excellent results in for nearly a 12 months Should the lottery as well as sale of lottery tickets are suspended.
The contingency also covers funding in the party of litigation by shedding bidders whenever a new operator is ultimately declared, which could also derail the smooth running of your lottery.
In the event ticket revenue are stopped, the NLC will use its reserves of R3.9-billion to carry on funding qualifying organisations, a resource with understanding of the contingency approach informed GroundUp.
In his weekend assertion asserting the postponement, Tau stated: “However, I'm not ready to produce a ultimate final decision at this time. Any this kind of determination at the moment would in all excellent conscience suggest that I haven't applied my intellect with owing thought of all of the relevant components.”
“I've recognized issues that require even more analysis. It will be inappropriate to disclose these concerns now as well as their disclosure could very properly prejudice the right adjudication with the awarding of the licence.”
Tau mentioned he was awaiting tips on The easiest method to ensure the continuation in the lottery inside the interim along with the “growth of a programme to finalise this method”.
This, he claimed, has to be carried out just after consultation with the Nationwide Treasury.”
Tau also hinted within the political makeup on the consortiums bidding for the licence as One more probable cause of the postponement.
He explained: “I have to also ensure that the proprietors and professionals on the prosperous applicants are, given that the Act states, ‘fit and proper folks’. On top of that, I need to be sure that no political occasion or political Business office-bearer has any direct economical fascination inside the applicant or a shareholder with the applicant.”
Enterprise Working day noted Earlier that almost all of the businesses shortlisted for the tender are politically exposed.
The Gold Rush consortium is led by significant-profile businessperson Sandile Zungu, who challenged for the ANC KwaZulu-Natal chair place in 2022 in advance of dropping out after he failed to garner adequate help, the paper documented.
A different politically linked bidder is HCI, and that is the greater part-owned because of the South African Garments and Textile Employees’ Union, an affiliate of Cosatu, which can be in alliance Using the ANC. CEO Johnny Copelyn donated to President Cyril Ramaphosa’s CR17 marketing campaign to the ANC presidency.
An additional shortlisted bidder, according to Small business Day, is Thebe Financial investment 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 for the ANC considering the fact that 2021, In accordance with declarations designed into the electoral Fee.
Ithuba, the holder of your licence, is also within the working, as is Umbulelo Consortium, led by Afrirent Holdings; and Giya Video games, In accordance with Enterprise Day.
Vivien Natasen consulted for Giya Game titles on its bid. GroundUp documented in 2022 that Natasen, by means ofเช ค หวย his corporation Neo Methods, 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 products and services are essential”.