Announcement of new lottery licence operator postponed - once again
Announcement of new lottery licence operator postponed - once again
Blog Article
Parks Tau, the trade and business minister, has postponed naming a successful bidder to operate South Africa’s lottery in the event the tenure of present operator, Ithuba, finishes in May perhaps upcoming yr.
Ithuba’s licence was due to have expired in May perhaps 2023 but was extended for two years by Tau’s predecessor Ebrahim Patel after a ask for because of the then newly-appointed board of your Nationwide Lotteries Fee (NLC).
The Board, which was handling the corruption that experienced overwhelmed the NLC, also suggested Patel of representations by Ithuba that it had been severely impacted with the Covid pandemic. This included a ban within the sale of lottery tickets at the peak with the pandemic.
In terms of the extension, Ithuba had to produce contributions to your NLC for distribution to fantastic results in at the next level than furnished for within their initial licence.
New licence operators are specified six months to set up infrastructure, which include ticket machines countrywide, to choose above within the preceding operator ahead of the incumbent’s licence ends. This most current postponement means that there will not be adequate time for your sleek changeover and It's unlikely that Tau will extend Ithuba’s licence once again.
The entire process of appointing a different licence operator has also been stricken by allegations of conflict of desire as well as other problems.
GroundUp has discovered which the NLC has contingency options in position to continue funding superior will cause for around a calendar year If your lottery along with the sale of lottery tickets are suspended.
The contingency also covers funding while in the event of litigation by shedding bidders when a new operator is last but not least declared, which could also derail The graceful working with the lottery.
In the event that ticket revenue are stopped, the NLC will use its reserves of R3.9-billion to continue funding qualifying organisations, a source with understanding of the contingency prepare instructed GroundUp.
In his weekend assertion saying the postponement, Tau explained: “However, I am not in a position to make a final decision at this time. Any these determination at the moment would in all good conscience signify that I haven't applied my head with because of thing to consider of each of the relevant variables.”
“I've identified matters that involve additional analysis. It will be inappropriate to reveal these problems now and their disclosure could quite perfectly prejudice the proper adjudication from the awarding in the licence.”
Tau explained he was awaiting tips on the best way to make sure the continuation of the lottery inside the interim along with the “growth of a programme to finalise this method”.
This, he reported, need to be completed immediately after consultation with the Nationwide Treasury.”
Tau also hinted in the political makeup on the consortiums bidding for the licence as A further probable basis for the postponement.
He stated: “I have to also make certain that the owners and supervisors of your profitable applicants are, as the Act states, ‘in good shape and proper persons’. Furthermore, I have to be sure that no political bash or political Workplace-bearer has any direct financial desire during the applicant or simply a shareholder of the applicant.”
Company Working day described Formerly that almost all of the companies shortlisted with the tender are politically exposed.
The Gold Hurry consortium is led by significant-profile businessperson Sandile Zungu, who challenged to the ANC KwaZulu-Natal chair place in 2022 right before dropping out immediately after he didn't garner adequate support, the paper described.
Another politically linked bidder is HCI, which is the greater part-owned through the South African Garments and Textile Staff’ Union, an affiliate of Cosatu, which is in alliance Together with the ANC. CEO Johnny Copelyn donated to President Cyril Ramaphosa’s CR17 marketing campaign with the ANC presidency.
Another shortlisted bidder, In line with Company Working day, is Thebe Investment Company, which was Started by ANC leaders in 1992. Thebe is 50 %-owned by Batho Batho Have faith in. The have confidence in has donated R60-million towards the ANC since 2021, As outlined by declarations created into the electoral commission.
Ithuba, the holder with the licence, can also be while in the functioning, as is Umbulelo Consortium, led by Afrirent Holdings; and Giya Games, As outlined by Business Working day.
Vivien Natasen consulted for Giya Games on its bid. GroundUp noted in 2022 that Natasen, by means ofเช ค หวย his firm Neo Solutions, contributed R2-million toward the luxury mansion on the then-NLC chair Aflred Nevhutanda — though his business Neo Answers had a contract Together with the NLC. Natasen advised GroundUp at that time that Neo Solutions was “appointed in the NLC’s offer chain processes, as and when solutions are demanded”.