Announcement of recent lottery licence operator postponed - yet again
Announcement of recent lottery licence operator postponed - yet again
Blog Article
Parks Tau, the trade and sector minister, has postponed naming a winning bidder to operate South Africa’s lottery in the event the tenure of existing operator, Ithuba, ends in May well future calendar year.
Ithuba’s licence was thanks to obtain expired in May 2023 but was prolonged for 2 several years by Tau’s predecessor Ebrahim Patel after a ask for via the then recently-appointed board in the Countrywide Lotteries Fee (NLC).
The Board, which was handling the corruption that had overcome the NLC, also advised Patel of representations by Ithuba that it had been seriously affected via the Covid pandemic. This incorporated a ban over the sale of lottery tickets at the height on the pandemic.
When it comes to the extension, Ithuba had to help make contributions towards the NLC for distribution to very good results in at a higher charge than presented for inside their First licence.
New licence operators are supplied 6 months to put in place infrastructure, which include ticket devices countrywide, to get above from your prior operator ahead of the incumbent’s licence ends. This newest postponement ensures that there will not be ample time for your smooth changeover and It truly is not likely that Tau will prolong Ithuba’s licence once again.
The entire process of appointing a different licence operator has also been stricken by allegations of conflict of fascination and other difficulties.
GroundUp has acquired that the NLC has contingency plans in position to carry on funding good brings about for as much as a calendar year If your lottery as well as the sale of lottery tickets are suspended.
The contingency also handles funding inside the function of litigation by getting rid of bidders when a new operator is lastly announced, which could also derail The graceful functioning with the lottery.
In the event that ticket profits are stopped, the NLC will use its reserves of R3.9-billion to carry on funding qualifying organisations, a supply with knowledge of the contingency approach advised GroundUp.
In his weekend assertion saying the postponement, Tau said: “Regretably, I am not able to create a final choice at this time. Any these types of determination at this time would in all fantastic conscience suggest which i haven't used my thoughts with owing consideration of every one of the applicable factors.”
“I've discovered matters that have to have further analysis. It will be inappropriate to reveal these issues now as well as their disclosure could really effectively prejudice the right adjudication with the awarding of your licence.”
Tau mentioned he was awaiting suggestions on The simplest way to make sure the continuation in the lottery in the interim as well as “advancement of the programme to finalise this method”.
This, he said, should be accomplished after consultation Together with the National Treasury.”
Tau also hinted within the political make-up of the consortiums bidding to the licence as One more probable reason for the postponement.
He stated: “I must also make sure that the proprietors and managers of the successful applicants are, as the Act states, ‘in good shape and right individuals’. Moreover, I must be sure that no political social gathering or political Place of work-bearer has any immediate financial curiosity during the applicant or possibly a shareholder from the applicant.”
Small business Working day noted Formerly that the majority of of the businesses shortlisted with the tender are politically exposed.
The Gold Rush consortium is led by substantial-profile businessperson Sandile Zungu, who challenged to the ANC KwaZulu-Natal chair situation in 2022 in advance of dropping out just after he did not garner plenty of guidance, the paper described.
A different politically connected bidder is HCI, that is vast majority-owned through the South African Garments and Textile Workers’ 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 for your ANC presidency.
A different shortlisted bidder, according to Organization Working day, is Thebe Financial investment Company, which was Established by ANC leaders in 1992. Thebe is 50 %-owned by Batho Batho Trust. The trust has donated R60-million to the ANC because 2021, Based on declarations produced into the electoral commission.
Ithuba, the holder from the licence, can also be within the functioning, as is Umbulelo Consortium, led by Afrirent Holdings; and Giya Video games, Based on Business Day.
Vivien Natasen consulted for Giya Game titles on its bid. GroundUp noted in 2022 that Natasen, byhihuay his firm Neo Answers, contributed R2-million towards the posh mansion of the then-NLC chair Aflred Nevhutanda — even though his corporation Neo Methods had a agreement Using the NLC. Natasen instructed GroundUp At the moment that Neo Solutions was “appointed with the NLC’s provide chain processes, as and when expert services are required”.
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