Announcement of latest lottery licence operator postponed - once more
Announcement of latest lottery licence operator postponed - once more
Blog Article
Parks Tau, the trade and business minister, has postponed naming a successful bidder to run South Africa’s lottery once the tenure of present operator, Ithuba, finishes in May possibly up coming calendar year.
Ithuba’s licence was because of to have expired in May well 2023 but was extended for two years by Tau’s predecessor Ebrahim Patel following a request from the then recently-appointed board with the Nationwide Lotteries Fee (NLC).
The Board, which was dealing with the corruption that experienced confused the NLC, also advised Patel of representations by Ithuba that it were severely afflicted via the Covid pandemic. This involved a ban about the sale of lottery tickets at the peak on the pandemic.
With regards to the extension, Ithuba had to generate contributions to the NLC for distribution to very good will cause at a higher charge than offered for within their Preliminary licence.
New licence operators are given 6 months to create infrastructure, which includes ticket equipment countrywide, to just take above through the earlier operator before the incumbent’s licence finishes. This most recent postponement means that there won't be sufficient time for just a smooth transition and It can be not likely that Tau will increase Ithuba’s licence again.
The process of appointing a different licence operator has also been plagued by allegations of conflict of interest and also other difficulties.
GroundUp has figured out the NLC has contingency strategies in place to carry on funding fantastic brings about for as many as a yr In the event the lottery as well as the sale of lottery tickets are suspended.
The contingency also handles funding in the party of litigation by shedding bidders whenever a new operator is lastly introduced, which could also derail The graceful jogging from 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 source with familiarity with the contingency strategy informed GroundUp.
In his weekend statement announcing the postponement, Tau mentioned: “Sad to say, I'm not able for making a closing determination at this stage. Any these final decision right now would in all superior conscience mean which i have not used my thoughts with thanks consideration of many of the appropriate factors.”
“I have determined issues that need even more analysis. It will be inappropriate to disclose these problems now and their disclosure could quite very well prejudice the appropriate adjudication of the awarding from the licence.”
Tau stated he was awaiting suggestions on the best way to make sure the continuation with the lottery from the interim plus the “progress of a programme to finalise this method”.
This, he explained, has to be done just after consultation with the Nationwide Treasury.”
Tau also hinted at the political makeup with the consortiums bidding for your licence as A different possible basis for the postponement.
He reported: “I must also make certain that the house owners and administrators of your successful applicants are, because the Act states, ‘suit and appropriate individuals’. Furthermore, I must make sure that no political celebration or political Workplace-bearer has any immediate fiscal curiosity in the applicant or simply a shareholder on the applicant.”
Company Working day noted Earlier that almost all of the businesses shortlisted for the 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 Apparel and Textile Workers’ Union, an affiliate of Cosatu, that is 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 half-owned by Batho Batho Have faith in. The believe in has donated R60-million to your ANC because 2021, As outlined by declarations made towards the electoral commission.
Ithuba, the holder in the licence, can be from the functioning, as is Umbulelo Consortium, led by Afrirent Holdings; and Giya Game titles, In keeping with Business Working day.
Vivien Natasen consulted for Giya Video games on its bid. GroundUp noted in 2022 that Natasen, viaผล สลากกินแบ่ง his organization Neo Remedies, contributed R2-million to the luxurious mansion with the then-NLC chair Aflred Nevhutanda — when his enterprise Neo Alternatives experienced a contract Using the NLC. Natasen told GroundUp At the moment that Neo Answers was “appointed with the NLC’s source chain processes, as and when services are expected”.