Announcement of latest lottery licence operator postponed - once again
Announcement of latest lottery licence operator postponed - once again
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Parks Tau, the trade and sector minister, has postponed naming a profitable bidder to operate South Africa’s lottery in the event the tenure of present-day operator, Ithuba, finishes in May well upcoming yr.
Ithuba’s licence was thanks to own expired in Might 2023 but was prolonged for 2 a long time by Tau’s predecessor Ebrahim Patel following a ask for with the then freshly-appointed board of the National Lotteries Commission (NLC).
The Board, which was addressing the corruption that experienced overwhelmed the NLC, also advised Patel of representations by Ithuba that it had been seriously afflicted by the Covid pandemic. This integrated a ban within the sale of lottery tickets at the height from the pandemic.
With regards to the extension, Ithuba had to create contributions towards the NLC for distribution to good results in at the next fee than offered for in their First licence.
New licence operators are offered 6 months to setup infrastructure, together with ticket machines countrywide, to choose above within the prior operator prior to the incumbent’s licence finishes. This latest postponement implies that there will not be enough time for just a sleek changeover and It's unlikely that Tau will extend Ithuba’s licence once more.
The process of appointing a fresh licence operator has also been affected by allegations of conflict of curiosity and also other troubles.
GroundUp has realized that the NLC has contingency designs in position to continue funding fantastic brings about for as much as a calendar year In case the lottery and also the sale of lottery tickets are suspended.
The contingency also handles funding within the celebration of litigation by losing bidders each time a new operator is finally announced, which could also derail The sleek jogging of your lottery.
In case ticket product sales are stopped, the NLC will use its reserves of R3.9-billion to continue funding qualifying organisations, a supply with understanding of the contingency prepare advised GroundUp.
In his weekend statement announcing the postponement, Tau stated: “Sadly, I am not ready for making a ultimate determination at this stage. Any such conclusion at the moment would in all good conscience necessarily mean that I haven't applied my head with due thought of all of the suitable elements.”
“I have discovered issues that need even further analysis. It would be inappropriate to disclose these concerns now and their disclosure could quite perfectly prejudice the appropriate adjudication of the awarding from the licence.”
Tau mentioned he was awaiting suggestions on The ultimate way to make sure the continuation on the lottery while in the interim along with the “advancement of a programme to finalise this method”.
This, he mentioned, must be finished soon after session Along with the National Treasury.”
Tau also hinted with the political make-up from the consortiums bidding for that licence as An additional attainable reason for the postponement.
He mentioned: “I have to also make sure the owners and managers in the profitable applicants are, as being the Act states, ‘in good shape and good folks’. On top of that, I need to be sure that no political occasion or political Office environment-bearer has any direct financial fascination while in the applicant or perhaps a shareholder of your applicant.”
Small business Day described previously that a lot of of the companies shortlisted for your tender are politically uncovered.
The Gold Hurry consortium is led by higher-profile businessperson Sandile Zungu, who challenged to the ANC KwaZulu-Natal chair posture in 2022 prior to dropping out soon after he did not garner more than enough support, the paper noted.
Yet another politically linked bidder is HCI, that's the greater part-owned because of the South African Garments and Textile Staff’ Union, an affiliate of Cosatu, that's in alliance Together with the ANC. CEO Johnny Copelyn donated to President Cyril Ramaphosa’s CR17 campaign with the ANC presidency.
One more shortlisted bidder, In accordance with Company Working day, is Thebe Investment decision Company, which was founded by ANC leaders in 1992. Thebe is fifty percent-owned by Batho Batho Trust. The have faith in has donated R60-million to the ANC considering that 2021, In keeping with declarations produced on the electoral commission.
Ithuba, the holder on the licence, is usually in the running, as is Umbulelo Consortium, led by Afrirent Holdings; and Giya Games, according to Company Working day.
Vivien Natasen consulted for Giya Online games on its bid. GroundUp documented in 2022 that Natasen, viacat888 his enterprise Neo Solutions, contributed R2-million towards the luxury mansion of the then-NLC chair Aflred Nevhutanda — while his company Neo Solutions experienced a agreement With all the NLC. Natasen told GroundUp At the moment that Neo Remedies was “appointed with the NLC’s source chain processes, as and when services are expected”.