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 field minister, has postponed naming a successful bidder to run South Africa’s lottery if the tenure of current operator, Ithuba, ends in Could following 12 months.
Ithuba’s licence was because of to own expired in May possibly 2023 but was extended for 2 decades by Tau’s predecessor Ebrahim Patel following a request from the then freshly-appointed board on the National Lotteries Fee (NLC).
The Board, which was working with the corruption that had confused the NLC, also suggested Patel of representations by Ithuba that it were severely impacted by the Covid pandemic. This involved a ban around the sale of lottery tickets at the height of your pandemic.
Regarding the extension, Ithuba experienced to create contributions on the NLC for distribution to superior leads to at a better amount than provided 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 up-to-date postponement implies that there won't be adequate time for a clean transition and It can be unlikely that Tau will lengthen Ithuba’s licence again.
The entire process of appointing a new licence operator has also been affected by allegations of conflict of desire along with other difficulties.
GroundUp has learned that the NLC has contingency programs in position to continue funding fantastic results in for up to a calendar year if the lottery and also the sale of lottery tickets are suspended.
The contingency also covers funding within the event of litigation by getting rid of bidders each 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 product sales are stopped, the NLC will use its reserves of R3.nine-billion to continue funding qualifying organisations, a supply 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 ultimate final decision at this time. Any such selection at the moment would in all very good conscience signify which i have not applied my mind with due thing to consider of many of the applicable things.”
“I have identified issues that call for more analysis. It could be inappropriate to disclose these difficulties now and their disclosure could pretty properly prejudice the proper adjudication on the awarding from the licence.”
Tau claimed he was awaiting guidance on The simplest way to make sure the continuation of your lottery within the interim plus the “enhancement of the programme to finalise this method”.
This, he said, should be completed soon after consultation Together with the Nationwide Treasury.”
Tau also hinted on the political makeup of your consortiums bidding for that licence as A different attainable cause of the postponement.
He said: “I need to also be certain that the owners and supervisors from the thriving applicants are, since the Act states, ‘in good shape and appropriate folks’. Additionally, I have to make sure no political get together or political Office environment-bearer has any immediate financial interest within the applicant or even a shareholder on the applicant.”
Small business 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 following he didn't garner adequate support, the paper documented.
An additional politically linked bidder is HCI, which is the greater part-owned by the South African Apparel and Textile Staff’ Union, an affiliate of Cosatu, which is in alliance Together with the ANC. CEO Johnny Copelyn donated to President Cyril Ramaphosa’s CR17 marketing campaign for the ANC presidency.
An additional shortlisted bidder, according to Business enterprise Day, is Thebe Investment decision Company, which was Launched by ANC leaders in 1992. Thebe is 50 %-owned by Batho Batho Believe in. The have confidence in has donated R60-million on the ANC due to the fact 2021, Based on declarations created on the electoral commission.
Ithuba, the holder in the licence, can be during the running, as is Umbulelo Consortium, led by Afrirent Holdings; and Giya Game titles, As outlined by Business Working day.
Vivien Natasen consulted for Giya Games on its bid. GroundUp claimed in 2022 that Natasen, byหวย รัฐบาล his organization Neo Options, contributed R2-million to the posh mansion of the then-NLC chair Aflred Nevhutanda — even though his business Neo Alternatives experienced a contract with the NLC. Natasen advised GroundUp At the moment that Neo Solutions was “appointed throughout the NLC’s source chain procedures, as and when solutions are essential”.
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