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 marketplace minister, has postponed naming a winning bidder to operate South Africa’s lottery in the event the tenure of present operator, Ithuba, ends in May possibly upcoming calendar year.
Ithuba’s licence was owing to acquire expired in May well 2023 but was extended for two years by Tau’s predecessor Ebrahim Patel following a request through the then newly-appointed board of your Nationwide Lotteries Commission (NLC).
The Board, which was addressing the corruption that had confused the NLC, also recommended Patel of representations by Ithuba that it were severely afflicted through the Covid pandemic. This included a ban to the sale of lottery tickets at the peak in the pandemic.
In terms of the extension, Ithuba had for making contributions to the NLC for distribution to excellent will cause at the next price than offered for within their Preliminary licence.
New licence operators are provided six months to setup infrastructure, which includes ticket machines countrywide, to consider over from the former operator prior to the incumbent’s licence ends. This hottest postponement signifies that there will not be enough time for any smooth transition and It is unlikely that Tau will increase Ithuba’s licence once more.
The whole process of appointing a whole new licence operator has also been stricken by allegations of conflict of curiosity and various concerns.
GroundUp has figured out which the NLC has contingency plans in place to continue funding great triggers for approximately a 12 months If your lottery as well as sale of lottery tickets are suspended.
The contingency also handles funding from the celebration of litigation by dropping bidders whenever a new operator is lastly declared, which could also derail The sleek operating of your lottery.
Just in case ticket revenue are stopped, the NLC will use its reserves of R3.nine-billion to continue funding qualifying organisations, a supply with expertise in the contingency program explained to GroundUp.
In his weekend statement saying the postponement, Tau reported: “Regrettably, I'm not ready to make a last final decision at this time. Any such choice at the moment would in all excellent conscience indicate that I have not applied my mind with thanks thing to consider of many of the applicable components.”
“I have identified issues that call for even more evaluation. It could be inappropriate to disclose these challenges now and their disclosure could very very well prejudice the correct adjudication of your awarding in the licence.”
Tau reported he was awaiting tips on The obvious way to make sure the continuation of the lottery inside the interim plus the “development of a programme to finalise this process”.
This, he stated, has to be accomplished immediately after session Along with the Nationwide Treasury.”
Tau also hinted with the political makeup of the consortiums bidding with the licence as A further doable basis for the postponement.
He stated: “I need to also be certain that the proprietors and administrators in the successful applicants are, since the Act states, ‘fit and suitable folks’. Furthermore, I have to ensure that no political get together or political Business-bearer has any immediate financial interest within the applicant or possibly a shareholder on the applicant.”
Small business Working day documented Formerly that many of the businesses shortlisted for your tender are politically exposed.
The Gold Rush consortium is led by substantial-profile businessperson Sandile Zungu, who challenged with the ANC KwaZulu-Natal chair position in 2022 just before dropping out immediately after he did not garner plenty of aid, the paper claimed.
A further politically linked bidder is HCI, which can be greater part-owned through the South African Clothing and Textile Staff’ Union, an affiliate of Cosatu, that's in alliance Using the ANC. CEO Johnny Copelyn donated to President Cyril Ramaphosa’s CR17 campaign for that ANC presidency.
An additional shortlisted bidder, according to Organization Working day, is Thebe Investment decision Company, which was Launched by ANC leaders in 1992. Thebe is 50 percent-owned by Batho Batho Trust. The trust has donated R60-million towards the ANC given that 2021, In line with declarations created for the electoral commission.
Ithuba, the holder with the licence, can be within the functioning, as is Umbulelo Consortium, led by Afrirent Holdings; and Giya Video games, according to Company Working day.
Vivien Natasen consulted for Giya Game titles on its bid. GroundUp noted in 2022 that Natasen, throughตา ว จ หวย his business Neo Options, contributed R2-million to the posh mansion of the then-NLC chair Aflred Nevhutanda — when his business Neo Methods had a agreement Using the NLC. Natasen instructed GroundUp At the moment that Neo Options was “appointed from the NLC’s offer chain procedures, as and when solutions are necessary”.
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