Announcement of new lottery licence operator postponed - once more
Announcement of new lottery licence operator postponed - once more
Blog Article
Parks Tau, the trade and sector minister, has postponed naming a successful bidder to operate South Africa’s lottery if the tenure of present operator, Ithuba, finishes in May possibly subsequent 12 months.
Ithuba’s licence was owing to acquire expired in May perhaps 2023 but was prolonged for 2 decades by Tau’s predecessor Ebrahim Patel following a request with the then recently-appointed board in the Nationwide Lotteries Commission (NLC).
The Board, which was addressing the corruption that experienced confused the NLC, also encouraged Patel of representations by Ithuba that it were seriously influenced by the Covid pandemic. This integrated a ban within the sale of lottery tickets at the height with the pandemic.
When it comes to the extension, Ithuba experienced to create contributions for the NLC for distribution to good brings about at a greater level than presented for of their Preliminary licence.
New licence operators are specified six months to create infrastructure, which include ticket equipment countrywide, to consider in excess of in the preceding operator prior to the incumbent’s licence ends. This latest postponement signifies that there won't be enough time for your sleek changeover and It can be unlikely that Tau will lengthen Ithuba’s licence once again.
The process of appointing a brand new licence operator has also been plagued by allegations of conflict of desire and other challenges.
GroundUp has realized which the NLC has contingency programs set up to carry on funding excellent results in for as much as a yr Should the lottery and also the sale of lottery tickets are suspended.
The contingency also addresses funding from the event of litigation by dropping bidders each time a new operator is at last announced, which could also derail the smooth working in the lottery.
Just in case ticket income are stopped, the NLC will use its reserves of R3.9-billion to continue funding qualifying organisations, a resource with knowledge of the contingency strategy told GroundUp.
In his weekend statement asserting the postponement, Tau mentioned: “Unfortunately, I am not ready to generate a final final decision at this stage. Any these selection at this time would in all excellent conscience necessarily mean that I have not used my mind with due consideration of the many relevant elements.”
“I have identified issues that require additional evaluation. It might be inappropriate to reveal these challenges now as well as their disclosure could really nicely prejudice the appropriate adjudication with the awarding in the licence.”
Tau said he was awaiting information on The easiest method to make sure the continuation on the lottery while in the interim along with the “progress of a programme to finalise this process”.
This, he reported, have to be completed immediately after session Together with the Countrywide Treasury.”
Tau also hinted at the political make-up in the consortiums bidding to the licence as One more attainable cause for the postponement.
He mentioned: “I must also make sure that the owners and administrators with the prosperous applicants are, because the Act states, ‘fit and suitable individuals’. In addition, I have to make certain that no political celebration or political Business-bearer has any immediate monetary curiosity while in the applicant or simply a shareholder of the applicant.”
Enterprise Working day described Beforehand that most of the businesses shortlisted for that tender are politically uncovered.
The Gold Rush consortium is led by large-profile businessperson Sandile Zungu, who challenged for your ANC KwaZulu-Natal chair place in 2022 before dropping out following he didn't garner adequate assist, the paper reported.
A further politically connected bidder is HCI, that is the vast majority-owned with the South African Clothing and Textile Employees’ Union, an affiliate of Cosatu, which happens to be in alliance With all the ANC. CEO Johnny Copelyn donated to President Cyril Ramaphosa’s CR17 campaign for that ANC presidency.
Another shortlisted bidder, In accordance with Small business Working day, is Thebe Investment Company, which was Established by ANC leaders in 1992. Thebe is 50 percent-owned by Batho Batho Belief. The belief has donated R60-million to the ANC since 2021, according to declarations built to your electoral commission.
Ithuba, the holder with the licence, is likewise while in the running, as is Umbulelo Consortium, led by Afrirent Holdings; and Giya Online games, Based on Small business Working day.
Vivien Natasen consulted for Giya Games on its bid. GroundUp documented in 2022 that Natasen, byhihuay his firm Neo Solutions, contributed R2-million to the luxury mansion on the then-NLC chair Aflred Nevhutanda — whilst his firm Neo Methods had a contract Along with the NLC. Natasen told GroundUp at that time that Neo Answers was “appointed from the NLC’s source chain procedures, as and when products and services are required”.
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