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 marketplace minister, has postponed naming a profitable bidder to run South Africa’s lottery if the tenure of existing operator, Ithuba, finishes in May well future yr.
Ithuba’s licence was thanks to possess expired in May well 2023 but was prolonged for two decades by Tau’s predecessor Ebrahim Patel after a ask for by the then newly-appointed board in the National Lotteries Fee (NLC).
The Board, which was coping with the corruption that had confused the NLC, also encouraged Patel of representations by Ithuba that it were seriously impacted with the Covid pandemic. This involved a ban over the sale of lottery tickets at the peak in the pandemic.
Concerning the extension, Ithuba experienced to produce contributions to the NLC for distribution to superior causes at an increased charge than supplied for inside their initial licence.
New licence operators are presented 6 months to set up infrastructure, like ticket equipment countrywide, to get more than with the prior operator ahead of the incumbent’s licence finishes. This hottest postponement implies that there will not be ample time to get a smooth transition and It's not likely that Tau will prolong Ithuba’s licence all over again.
The process of appointing a whole new licence operator has also been tormented by allegations of conflict of interest together with other difficulties.
GroundUp has realized which the NLC has contingency options in place to carry on funding excellent causes for as much as a calendar year In the event the lottery and the sale of lottery tickets are suspended.
The contingency also addresses funding within the celebration of litigation by getting rid of bidders when a new operator is last but not least declared, which could also derail The sleek running in the lottery.
Just in case ticket sales are stopped, the NLC will use its reserves of R3.9-billion to continue funding qualifying organisations, a resource with knowledge of the contingency prepare advised GroundUp.
In his weekend statement announcing the postponement, Tau stated: “Regretably, I'm not able for making a ultimate determination at this stage. Any these types of conclusion at the moment would in all very good conscience indicate which i have not applied my brain with thanks consideration of the many related things.”
“I've recognized matters that require more evaluation. It might be inappropriate to disclose these troubles now and their disclosure could pretty effectively prejudice the right adjudication of your awarding of the licence.”
Tau stated he was awaiting guidance on The easiest method to make sure the continuation of your lottery within the interim and also the “enhancement of the programme to finalise this method”.
This, he claimed, need to be completed right after session While using the Nationwide Treasury.”
Tau also hinted in the political makeup of the consortiums bidding for that licence as One more possible cause of the postponement.
He reported: “I need to also make certain that the house owners and administrators of your thriving applicants are, given that the Act states, ‘healthy and suitable individuals’. In addition, I need to make sure that no political party or political Business-bearer has any direct monetary desire from the applicant or maybe a shareholder in the applicant.”
Company Working day noted Earlier that almost all of the businesses shortlisted with the tender are politically uncovered.
The Gold Rush consortium is led by large-profile businessperson Sandile Zungu, who challenged to the ANC KwaZulu-Natal chair placement in 2022 in advance of dropping out following he failed to garner sufficient help, the paper documented.
An additional politically related bidder is HCI, and that is the greater part-owned through the South African Clothing and Textile Staff’ Union, an affiliate of Cosatu, which is in alliance While using the ANC. CEO Johnny Copelyn donated to President Cyril Ramaphosa’s CR17 campaign for that ANC presidency.
An additional shortlisted bidder, according to Enterprise Day, is Thebe Financial investment Company, which was Established by ANC leaders in 1992. Thebe is 50 %-owned by Batho Batho Trust. The believe in has donated R60-million on the ANC since 2021, Based on declarations produced to the electoral commission.
Ithuba, the holder of the licence, is also in the jogging, as is Umbulelo Consortium, led by Afrirent Holdings; and Giya Games, Based on Business enterprise Day.
Vivien Natasen consulted for Giya Game titles on its bid. GroundUp documented in 2022 that Natasen, as a result ofตรวจ สลากกินแบ่ง รัฐบาล his organization Neo Answers, contributed R2-million in the direction of the luxurious mansion in the then-NLC chair Aflred Nevhutanda — while his firm Neo Options experienced a contract Along with the NLC. Natasen told GroundUp at that time that Neo Alternatives was “appointed through the NLC’s provide chain processes, as and when expert services are required”.
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