ANNOUNCEMENT OF RECENT LOTTERY LICENCE OPERATOR POSTPONED - AGAIN

Announcement of recent lottery licence operator postponed - again

Announcement of recent lottery licence operator postponed - again

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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, ends in May perhaps up coming calendar year.

Ithuba’s licence was thanks to own expired in May perhaps 2023 but was prolonged for 2 many years by Tau’s predecessor Ebrahim Patel following a request because of the then recently-appointed board with the Nationwide Lotteries Commission (NLC).

The Board, which was addressing the corruption that experienced overwhelmed the NLC, also advised Patel of representations by Ithuba that it were severely affected from the Covid pandemic. This integrated a ban around the sale of lottery tickets at the peak from the pandemic.

With regards to the extension, Ithuba experienced to generate contributions to the NLC for distribution to very good triggers at an increased charge than provided for inside their First licence.

New licence operators are given six months to create infrastructure, which include ticket machines countrywide, to consider above with the former operator ahead of the incumbent’s licence finishes. This most up-to-date postponement signifies that there will not be enough time for any smooth changeover and It can be unlikely that Tau will lengthen Ithuba’s licence once more.

The whole process of appointing a different licence operator has also been affected by allegations of conflict of interest and other difficulties.

GroundUp has realized which the NLC has contingency ideas in position to carry on funding great brings about for nearly a year In the event the lottery and the sale of lottery tickets are suspended.

The contingency also covers funding inside the celebration of litigation by getting rid of bidders any time a new operator is finally declared, which could also derail The graceful functioning with the lottery.

Just in case ticket product sales are stopped, the NLC will use its reserves of R3.nine-billion to continue funding qualifying organisations, a source with expertise in the contingency system advised GroundUp.

In his weekend statement saying the postponement, Tau said: “Regretably, I am not able to create a closing choice at this time. Any such conclusion at this time would in all excellent conscience signify that I haven't used my mind with due thought of many of the relevant aspects.”

“I have recognized matters that require further analysis. It could be inappropriate to disclose these issues now as well as their disclosure could pretty very well prejudice the right adjudication from the awarding of your licence.”

Tau explained he was awaiting guidance on The easiest method to make sure the continuation from the lottery in the interim as well as “growth of the programme to finalise this process”.

This, he mentioned, needs to be carried out soon after session While using the National Treasury.”

Tau also hinted in the political makeup of the consortiums bidding for the licence as An additional feasible cause of the postponement.

He mentioned: “I must also make sure that the owners and supervisors from the successful applicants are, as being the Act states, ‘in shape and appropriate folks’. Moreover, I need to be certain that no political party or political Office environment-bearer has any immediate money desire while in the applicant or a shareholder from the applicant.”

Enterprise Working day noted Earlier that the majority of the companies shortlisted to the tender are politically exposed.

The Gold Rush consortium is led by large-profile businessperson Sandile Zungu, who challenged for the ANC KwaZulu-Natal chair position in 2022 ahead of dropping out after he didn't garner more than enough aid, the paper reported.

Another politically related bidder is HCI, and that is majority-owned because of the South African Apparel and Textile Employees’ Union, an affiliate of Cosatu, which is in alliance While using the ANC. CEO Johnny Copelyn donated to President Cyril Ramaphosa’s CR17 campaign to the ANC presidency.

Another shortlisted bidder, In line with Business enterprise Working day, is Thebe Investment decision Corporation, which was Established by ANC leaders in 1992. Thebe is fifty percent-owned by Batho Batho Believe in. The have faith in has donated R60-million to your ANC since 2021, As outlined by declarations manufactured on the electoral commission.

Ithuba, the holder in the licence, is additionally within the running, as is Umbulelo Consortium, led by Afrirent Holdings; and Giya Online games, In line with Company Working day.

Vivien Natasen consulted for Giya Game titles on its bid. GroundUp documented in 2022 that Natasen, viaผล สลากกินแบ่ง his company Neo Solutions, contributed R2-million to the posh mansion of your then-NLC chair Aflred Nevhutanda — even though his company Neo Remedies experienced a contract Together with the NLC. Natasen told GroundUp at that time that Neo Alternatives was “appointed through the NLC’s provide chain processes, as and when products and services are necessary”.

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