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 sector minister, has postponed naming a winning bidder to run South Africa’s lottery if the tenure of current operator, Ithuba, ends in Might up coming 12 months.
Ithuba’s licence was because of to own expired in May possibly 2023 but was extended for 2 years by Tau’s predecessor Ebrahim Patel following a request with the then newly-appointed board of the Nationwide Lotteries Commission (NLC).
The Board, which was dealing with the corruption that experienced overwhelmed the NLC, also recommended Patel of representations by Ithuba that it had been severely afflicted through the Covid pandemic. This included a ban about 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 the next amount than presented for of their initial licence.
New licence operators are supplied six months to create infrastructure, including ticket machines countrywide, to consider above within the previous operator ahead of the incumbent’s licence ends. This hottest postponement implies that there won't be enough time for your clean transition and It can be unlikely that Tau will prolong Ithuba’s licence yet again.
The entire process of appointing a whole new licence operator has also been stricken by allegations of conflict of fascination and various difficulties.
GroundUp has uncovered which the NLC has contingency strategies set up to continue funding superior brings about for nearly a year In case the lottery and also the sale of lottery tickets are suspended.
The contingency also covers funding from the party of litigation by losing bidders whenever a new operator is ultimately introduced, which could also derail the smooth operating from the lottery.
In the event that ticket sales are stopped, the NLC will use its reserves of R3.9-billion to carry on funding qualifying organisations, a resource with expertise in the contingency system advised GroundUp.
In his weekend statement asserting the postponement, Tau explained: “However, I am not able to produce a final decision at this stage. Any these types of choice right now would in all great conscience indicate which i haven't used my mind with because of thought of all the related variables.”
“I have recognized matters that call for further evaluation. It would be inappropriate to reveal these issues now as well as their disclosure could pretty well prejudice the right adjudication in the awarding from the licence.”
Tau said he was awaiting information on The simplest way to make sure the continuation from the lottery from the interim as well as the “development of a programme to finalise this method”.
This, he stated, need to be done immediately after session Using the National Treasury.”
Tau also hinted on the political makeup from the consortiums bidding for the licence as An additional achievable basis for the postponement.
He mentioned: “I must also make sure that the proprietors and managers of the effective applicants are, because the Act states, ‘match and good individuals’. On top of that, I must make sure no political get together or political office-bearer has any direct fiscal fascination from the applicant or simply a shareholder of the applicant.”
Company Working day claimed Beforehand that the majority of of the businesses shortlisted to the tender are politically exposed.
The Gold Hurry consortium is led by substantial-profile businessperson Sandile Zungu, who challenged for your ANC KwaZulu-Natal chair position in 2022 right before dropping out immediately after he failed to garner plenty of help, the paper noted.
Another politically linked bidder is HCI, that is vast majority-owned by the South African Apparel and Textile Personnel’ Union, an affiliate of Cosatu, which can be in alliance While 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 Small business Working day, is Thebe Financial commitment Company, which was Started by ANC leaders in 1992. Thebe is half-owned by Batho Batho Trust. The belief has donated R60-million to your ANC considering that 2021, In accordance with declarations made to your electoral commission.
Ithuba, the holder of your licence, is additionally in the managing, 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, byหวย his organization Neo Solutions, contributed R2-million in direction of the luxurious mansion from the then-NLC chair Aflred Nevhutanda — when his company Neo Answers had a agreement While using the NLC. Natasen told GroundUp at that time that Neo Options was “appointed throughout the NLC’s provide chain processes, as and when providers are essential”.
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