Announcement of recent lottery licence operator postponed - once again
Announcement of recent lottery licence operator postponed - once again
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Parks Tau, the trade and market minister, has postponed naming a successful bidder to run South Africa’s lottery when the tenure of current operator, Ithuba, finishes in Could subsequent calendar year.
Ithuba’s licence was because of to own expired in May 2023 but was prolonged for 2 decades by Tau’s predecessor Ebrahim Patel following a request through the then newly-appointed board in the Nationwide Lotteries Commission (NLC).
The Board, which was managing the corruption that experienced overcome the NLC, also advised Patel of representations by Ithuba that it had been seriously impacted by the Covid pandemic. This provided a ban within the sale of lottery tickets at the peak of the pandemic.
With regard to the extension, Ithuba experienced to make contributions to the NLC for distribution to very good leads to at a greater fee than furnished for of their Preliminary licence.
New licence operators are offered 6 months to build infrastructure, together with ticket devices countrywide, to take about from your previous operator prior to the incumbent’s licence finishes. This latest postponement implies that there won't be enough time for a smooth transition and It truly is unlikely that Tau will lengthen Ithuba’s licence yet again.
The whole process of appointing a new licence operator has also been plagued by allegations of conflict of interest as well as other concerns.
GroundUp has discovered which the NLC has contingency options in position to carry on funding fantastic brings about for around a calendar year In case the lottery along with the sale of lottery tickets are suspended.
The contingency also handles funding while in the event of litigation by dropping bidders any time a new operator is ultimately introduced, which could also derail The graceful running in the lottery.
Just in case ticket gross sales are stopped, the NLC will use its reserves of R3.nine-billion to carry on funding qualifying organisations, a resource with knowledge of the contingency strategy informed GroundUp.
In his weekend statement asserting the postponement, Tau said: “Unfortunately, I'm not able to generate a ultimate determination at this stage. Any such conclusion right now would in all excellent conscience mean which i haven't utilized my intellect with because of thing to consider of every one of the relevant components.”
“I've identified matters that involve additional evaluation. It could be inappropriate to reveal these problems now and their disclosure could quite very well prejudice the appropriate adjudication of the awarding of the licence.”
Tau stated he was awaiting suggestions on the best way to make sure the continuation with the lottery from the interim plus the “progress of a programme to finalise this method”.
This, he explained, has to be done just after consultation with the Nationwide Treasury.”
Tau also hinted at the political makeup of your consortiums bidding for your licence as A further 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 good folks’. On top of that, I need to make sure no political occasion or political Business-bearer has any direct monetary desire from the applicant or possibly a shareholder from the applicant.”
Business Day claimed Formerly that the majority of the businesses shortlisted with the tender are politically exposed.
The Gold Rush consortium is led by significant-profile businessperson Sandile Zungu, who challenged for the ANC KwaZulu-Natal chair placement in 2022 right before dropping out following he failed to garner ample guidance, the paper claimed.
Another politically related bidder is HCI, which is vast majority-owned through the South African Clothes and Textile Workers’ Union, an affiliate of Cosatu, which is in alliance with the ANC. CEO Johnny Copelyn donated to President Cyril Ramaphosa’s CR17 marketing campaign to the ANC presidency.
An additional shortlisted bidder, according to Small business Day, is Thebe Financial investment Corporation, which was Launched by ANC leaders in 1992. Thebe is 50 %-owned by Batho Batho Have confidence in. The believe in has donated R60-million on the ANC since 2021, In line with declarations built to the electoral commission.
Ithuba, the holder from the licence, is additionally from the jogging, as is Umbulelo Consortium, led by Afrirent Holdings; and Giya Game titles, In keeping with Business enterprise Working day.
Vivien Natasen consulted for Giya Video games on its bid. GroundUp noted in 2022 that Natasen, viafox888 his enterprise Neo Solutions, contributed R2-million in the direction of the luxury mansion from the then-NLC chair Aflred Nevhutanda — whilst his business Neo Options experienced a agreement Together with the NLC. Natasen advised GroundUp at that time that Neo Methods was “appointed from the NLC’s supply chain procedures, as and when providers are required”.