Announcement of latest lottery licence operator postponed - yet again
Announcement of latest lottery licence operator postponed - yet again
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Parks Tau, the trade and industry minister, has postponed naming a winning bidder to operate South Africa’s lottery if the tenure of existing operator, Ithuba, finishes in May well up coming calendar year.
Ithuba’s licence was because of to have expired in May well 2023 but was extended for two decades by Tau’s predecessor Ebrahim Patel after a request via the then newly-appointed board on the Countrywide Lotteries Fee (NLC).
The Board, which was managing the corruption that had overcome the NLC, also recommended Patel of representations by Ithuba that it were severely impacted with the Covid pandemic. This involved a ban to the sale of lottery tickets at the peak on the pandemic.
Concerning the extension, Ithuba experienced to generate contributions for the NLC for distribution to excellent leads to at the next amount than presented for in their Original licence.
New licence operators are provided 6 months to create infrastructure, including ticket devices countrywide, to choose above within the earlier operator ahead of the incumbent’s licence finishes. This newest postponement implies that there won't be enough time for just a smooth changeover and It's unlikely that Tau will lengthen Ithuba’s licence again.
The process of appointing a brand new licence operator has also been tormented by allegations of conflict of interest and other difficulties.
GroundUp has acquired that the NLC has contingency strategies in position to continue funding good brings about for as many as a 12 months In case the lottery plus the sale of lottery tickets are suspended.
The contingency also handles funding while in the party of litigation by losing bidders when a new operator is lastly declared, which could also derail the smooth running on the lottery.
In case ticket income 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 told GroundUp.
In his weekend statement saying the postponement, Tau claimed: “Regrettably, I am not able for making a last final decision at this time. Any these decision presently would in all superior conscience necessarily mean which i have not used my brain with due thought of all of the relevant components.”
“I've recognized matters that involve additional evaluation. It could be inappropriate to reveal these challenges now as well as their disclosure could extremely effectively prejudice the right adjudication with the awarding of your licence.”
Tau reported he was awaiting advice on The easiest way to make sure the continuation in the lottery inside the interim as well as the “improvement of the programme to finalise this process”.
This, he said, need to be accomplished following session With all the Countrywide Treasury.”
Tau also hinted on the political make-up from the consortiums bidding for that licence as another attainable reason behind the postponement.
He stated: “I have to also be sure that the owners and managers in the profitable applicants are, as being the Act states, ‘healthy and good people’. Also, I have to be certain that no political get together or political Place of work-bearer has any immediate money curiosity within the applicant or simply a shareholder on the applicant.”
Enterprise Working day noted Earlier that many of the businesses shortlisted for your tender are politically exposed.
The Gold Hurry consortium is led by high-profile businessperson Sandile Zungu, who challenged for your ANC KwaZulu-Natal chair situation in 2022 before dropping out right after he did not garner plenty of aid, the paper reported.
An additional politically connected bidder is HCI, that is bulk-owned through the South African Clothes and Textile Workers’ Union, an affiliate of Cosatu, which is in alliance While using the ANC. CEO Johnny Copelyn donated to President Cyril Ramaphosa’s CR17 marketing campaign for the ANC presidency.
A further shortlisted bidder, As outlined by Enterprise Working day, is Thebe Financial commitment Corporation, which was Started by ANC leaders in 1992. Thebe is 50 percent-owned by Batho Batho Have confidence in. The belief has donated R60-million for the ANC due to the fact 2021, Based on declarations created on the electoral Fee.
Ithuba, the holder with the licence, is usually in the operating, as is Umbulelo Consortium, led by Afrirent Holdings; and Giya Games, Based on Company Working day.
Vivien Natasen consulted for Giya Online games on its bid. GroundUp documented in 2022 that Natasen, vialtpbet his firm Neo Alternatives, contributed R2-million to the luxurious mansion with the then-NLC chair Aflred Nevhutanda — when his corporation Neo Remedies had a deal While using the NLC. Natasen instructed GroundUp at that time that Neo Methods was “appointed from the NLC’s supply chain procedures, as and when providers are demanded”.