Announcement of recent lottery licence operator postponed - all over again
Announcement of recent lottery licence operator postponed - all over again
Blog Article
Parks Tau, the trade and market minister, has postponed naming a successful bidder to operate South Africa’s lottery if the tenure of current operator, Ithuba, finishes in May well future 12 months.
Ithuba’s licence was due to have expired in May perhaps 2023 but was extended for 2 a long time by Tau’s predecessor Ebrahim Patel following a request because of the then freshly-appointed board in the Countrywide Lotteries Fee (NLC).
The Board, which was handling the corruption that experienced overwhelmed the NLC, also suggested Patel of representations by Ithuba that it were seriously afflicted with the Covid pandemic. This included a ban about the sale of lottery tickets at the peak on the pandemic.
In terms of the extension, Ithuba experienced to help make contributions into the NLC for distribution to superior results in at an increased fee than presented for within their Original licence.
New licence operators are presented six months to put in place infrastructure, which includes ticket equipment countrywide, to get over through the previous operator prior to the incumbent’s licence finishes. This latest postponement implies that there won't be ample time for a easy transition and It truly is not likely that Tau will prolong Ithuba’s licence all over again.
The process of appointing a fresh licence operator has also been affected by allegations of conflict of curiosity and also other difficulties.
GroundUp has uncovered the NLC has contingency ideas set up to carry on funding excellent leads to for up to a 12 months In the event the lottery and also the sale of lottery tickets are suspended.
The contingency also handles funding inside the party of litigation by dropping bidders every time a new operator is lastly introduced, which could also derail The graceful operating on the lottery.
In the event that ticket sales are stopped, the NLC will use its reserves of R3.9-billion to continue funding qualifying organisations, a source with knowledge of the contingency strategy advised GroundUp.
In his weekend statement announcing the postponement, Tau stated: “Regrettably, I am not ready to help make a remaining conclusion at this time. Any this sort of choice at this time would in all fantastic conscience indicate that I haven't used my brain with due thought of all of the suitable aspects.”
“I've identified matters that have to have additional evaluation. It could be inappropriate to reveal these issues now and their disclosure could really very well prejudice the appropriate adjudication of the awarding from the licence.”
Tau mentioned he was awaiting tips on The simplest way to ensure the continuation of the lottery in the interim and the “development of the programme to finalise this process”.
This, he stated, needs to be performed soon after consultation Along with the National Treasury.”
Tau also hinted within the political makeup with the consortiums bidding for the licence as A different feasible cause for the postponement.
He said: “I must also be sure that the entrepreneurs and managers from the profitable applicants are, as being the Act states, ‘in good shape and proper persons’. In addition, I need to ensure that no political party or political Workplace-bearer has any immediate fiscal curiosity in the applicant or simply a shareholder with the applicant.”
Enterprise Working day documented Beforehand that many of the companies shortlisted to the tender are politically uncovered.
The Gold Hurry consortium is led by large-profile businessperson Sandile Zungu, who challenged with the ANC KwaZulu-Natal chair position in 2022 ahead of dropping out after he failed to garner adequate guidance, the paper claimed.
Another politically connected bidder is HCI, that is bulk-owned with the South African Apparel and Textile Employees’ Union, an affiliate of Cosatu, which can be in alliance With all the ANC. CEO Johnny Copelyn donated to President Cyril Ramaphosa’s CR17 campaign for that ANC presidency.
One more shortlisted bidder, In line with Company Working day, is Thebe Investment decision Company, which was Started by ANC leaders in 1992. Thebe is 50 percent-owned by Batho Batho Believe in. The belief has donated R60-million for the ANC considering the fact that 2021, In accordance with declarations designed to the electoral commission.
Ithuba, the holder from 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 Online games on its bid. GroundUp documented in 2022 that Natasen, by means ofตรวจ หวย ผล สลากกินแบ่ง รัฐบาล งวด his corporation Neo Solutions, contributed R2-million in the direction of the luxury mansion from the then-NLC chair Aflred Nevhutanda — although his organization Neo Answers had a deal While using the NLC. Natasen instructed GroundUp at that time that Neo Options was “appointed through the NLC’s offer chain processes, as and when services are expected”.