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 successful bidder to operate South Africa’s lottery when the tenure of existing operator, Ithuba, finishes in May well future year.
Ithuba’s licence was thanks to have expired in May 2023 but was prolonged for two several years by Tau’s predecessor Ebrahim Patel after a ask for via the then recently-appointed board from the Countrywide Lotteries Commission (NLC).
The Board, which was managing the corruption that experienced overcome the NLC, also encouraged Patel of representations by Ithuba that it had been seriously affected because of the Covid pandemic. This incorporated a ban on the sale of lottery tickets at the height with the pandemic.
When it comes to the extension, Ithuba experienced to make contributions for the NLC for distribution to fantastic causes at a greater fee than furnished for of their Original licence.
New licence operators are supplied 6 months to build infrastructure, which include ticket devices countrywide, to get above from your previous operator ahead of the incumbent’s licence ends. This newest postponement ensures that there will not be ample time for the smooth changeover and It truly is not likely that Tau will prolong Ithuba’s licence again.
The whole process of appointing a whole new licence operator has also been plagued by allegations of conflict of fascination as well as other difficulties.
GroundUp has learned that the NLC has contingency strategies in position to carry on funding fantastic causes for as much as a calendar year Should the lottery and also the sale of lottery tickets are suspended.
The contingency also handles funding within the celebration of litigation by getting rid of bidders when a new operator is ultimately introduced, which could also derail the smooth working of the lottery.
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 expertise in the contingency system instructed GroundUp.
In his weekend statement asserting the postponement, Tau reported: “Unfortunately, I'm not in a position to create a final decision at this time. Any these types of selection right now would in all great conscience suggest which i haven't applied my thoughts with owing thing to consider of each of the suitable elements.”
“I have recognized matters that call for further more analysis. It would be inappropriate to reveal these difficulties now as well as their disclosure could really nicely prejudice the appropriate adjudication of your awarding on the licence.”
Tau said he was awaiting tips on The simplest way to make sure the continuation of the lottery during the interim as well as “progress of a programme to finalise this process”.
This, he mentioned, must be finished immediately after consultation Along with the National Treasury.”
Tau also hinted for the political make-up from the consortiums bidding for your licence as A different possible reason behind the postponement.
He said: “I need to also make sure the house owners and professionals of the thriving applicants are, as being the Act states, ‘in shape and correct people’. Furthermore, I need to be certain that no political celebration or political office-bearer has any direct money curiosity from the applicant or perhaps a shareholder in the applicant.”
Business enterprise Working day reported previously that many of the businesses shortlisted for that tender are politically exposed.
The Gold Rush consortium is led by large-profile businessperson Sandile Zungu, who challenged to the ANC KwaZulu-Natal chair placement in 2022 just before dropping out following he didn't garner ample help, the paper reported.
A further politically related bidder is HCI, which can be greater part-owned through the South African Garments and Textile Employees’ Union, an affiliate of Cosatu, which happens to be in alliance Along with the ANC. CEO Johnny Copelyn donated to President Cyril Ramaphosa’s CR17 campaign to the ANC presidency.
Another shortlisted bidder, In line with Company Day, is Thebe Financial investment Company, which was Established by ANC leaders in 1992. Thebe is half-owned by Batho Batho Believe in. The believe in has donated R60-million to the ANC because 2021, according to declarations built on the electoral commission.
Ithuba, the holder with the licence, is likewise inside the functioning, as is Umbulelo Consortium, led by Afrirent Holdings; and Giya Video games, In keeping with Organization Working day.
Vivien Natasen consulted for Giya Game titles on its bid. GroundUp noted in 2022 that Natasen, by way ofหวย ลาว วัน นี้ his firm Neo Options, contributed R2-million to the luxury mansion on the then-NLC chair Aflred Nevhutanda — while his firm Neo Methods had a contract Together with the NLC. Natasen explained to GroundUp At the moment that Neo Solutions was “appointed with the NLC’s provide chain processes, as and when providers are necessary”.
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