Announcement of latest lottery licence operator postponed - yet again
Announcement of latest lottery licence operator postponed - yet again
Blog Article
Parks Tau, the trade and business minister, has postponed naming a profitable bidder to run South Africa’s lottery if the tenure of current operator, Ithuba, ends in Could upcoming year.
Ithuba’s licence was due to get expired in Could 2023 but was extended for 2 decades by Tau’s predecessor Ebrahim Patel after a request by the then freshly-appointed board on the National Lotteries Fee (NLC).
The Board, which was handling 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 integrated a ban to the sale of lottery tickets at the peak in the pandemic.
In terms of the extension, Ithuba had to generate contributions into the NLC for distribution to great brings about at an increased level than supplied for in their initial licence.
New licence operators are offered 6 months to set up infrastructure, including ticket equipment countrywide, to choose about with the preceding operator before the incumbent’s licence finishes. This most current postponement implies that there won't be adequate time for a clean changeover and It truly is not likely that Tau will lengthen Ithuba’s licence all over again.
The entire process of appointing a completely new licence operator has also been affected by allegations of conflict of desire and also other challenges.
GroundUp has discovered that the NLC has contingency strategies in position to carry on funding fantastic results in for up to a year if the lottery as well as the sale of lottery tickets are suspended.
The contingency also covers funding within the event of litigation by getting rid of bidders every time a new operator is last but not least announced, which could also derail The graceful managing from the lottery.
In the event that ticket income are stopped, the NLC will use its reserves of R3.nine-billion to continue funding qualifying organisations, a resource with knowledge of the contingency system told GroundUp.
In his weekend statement saying the postponement, Tau said: “Regrettably, I'm not ready to make a last final decision at this time. Any such choice at the moment would in all excellent conscience indicate that I have not used my intellect with thanks thought of the many appropriate variables.”
“I have discovered matters that need further analysis. It would be inappropriate to reveal these concerns now as well as their disclosure could quite nicely prejudice the right adjudication from the awarding with the licence.”
Tau stated he was awaiting assistance on The easiest way to ensure the continuation from the lottery while in the interim and the “improvement of a programme to finalise this process”.
This, he mentioned, have to be performed just after session While using the Nationwide Treasury.”
Tau also hinted with the political makeup of the consortiums bidding for the licence as A further doable basis for the postponement.
He stated: “I need to also be certain that the proprietors and administrators in the successful applicants are, as being the Act states, ‘fit and suitable folks’. Furthermore, I have to ensure that no political get together or political Business-bearer has any immediate financial interest inside the applicant or possibly a shareholder on the applicant.”
Small business Working day documented Formerly that almost all of the companies shortlisted for the tender are politically uncovered.
The Gold Rush consortium is led by high-profile businessperson Sandile Zungu, who challenged with the ANC KwaZulu-Natal chair situation in 2022 just before dropping out after he did not garner sufficient aid, the paper documented.
A further politically linked bidder is HCI, which happens to be bulk-owned via the South African Clothes and Textile Employees’ Union, an affiliate of Cosatu, and that is in alliance Using the ANC. CEO Johnny Copelyn donated to President Cyril Ramaphosa’s CR17 campaign for your ANC presidency.
Yet another shortlisted bidder, As outlined by Business enterprise Working day, is Thebe Financial commitment Company, which was Started by ANC leaders in 1992. Thebe is half-owned by Batho Batho Believe in. The trust has donated R60-million to your ANC due to the fact 2021, In line with declarations produced into the electoral commission.
Ithuba, the holder with the licence, is additionally in the working, as is Umbulelo Consortium, led by Afrirent Holdings; and Giya Game titles, In accordance with Business enterprise Working day.
Vivien Natasen consulted for Giya Games on its bid. GroundUp noted in 2022 that Natasen, by way ofหวย ลาว ล่าสุด his company Neo Remedies, contributed R2-million in the direction of the posh mansion of the then-NLC chair Aflred Nevhutanda — although his enterprise Neo Options had a agreement Along 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 essential”.
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