Announcement of latest lottery licence operator postponed - once again
Announcement of latest lottery licence operator postponed - once again
Blog Article
Parks Tau, the trade and sector minister, has postponed naming a successful bidder to operate South Africa’s lottery once the tenure of latest operator, Ithuba, finishes in May up coming yr.
Ithuba’s licence was because of to get 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 Countrywide Lotteries Commission (NLC).
The Board, which was coping with the corruption that had confused the NLC, also recommended Patel of representations by Ithuba that it had been severely affected with the Covid pandemic. This included a ban on the sale of lottery tickets at the peak on the pandemic.
In terms of the extension, Ithuba experienced to create contributions towards the NLC for distribution to superior leads to at an increased price than supplied for inside their initial licence.
New licence operators are supplied six months to arrange infrastructure, which include ticket machines countrywide, to take about in the preceding operator ahead of the incumbent’s licence finishes. This most recent postponement means that there won't be enough time for your clean transition and It can be unlikely that Tau will increase 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 problems.
GroundUp has learned the NLC has contingency programs in place to carry on funding excellent causes for approximately a calendar year In the event the lottery and the sale of lottery tickets are suspended.
The contingency also addresses funding in the function of litigation by shedding bidders any time a new operator is lastly announced, which could also derail the smooth working in the lottery.
Just in case ticket income are stopped, the NLC will use its reserves of R3.9-billion to carry on funding qualifying organisations, a resource with understanding of the contingency system explained to GroundUp.
In his weekend statement asserting the postponement, Tau stated: “Regrettably, I'm not in a position to make a remaining final decision at this stage. Any these kinds of choice presently would in all superior conscience indicate which i have not applied my intellect with because of thing to consider of every one of the applicable elements.”
“I've identified matters that require additional evaluation. It might be inappropriate to disclose these issues now as well as their disclosure could incredibly perfectly prejudice the proper adjudication of the awarding of the licence.”
Tau stated he was awaiting advice on The ultimate way to make sure the continuation with the lottery from the interim along with the “growth of the programme to finalise this process”.
This, he said, need to be carried out just after consultation Along with the National Treasury.”
Tau also hinted with the political make-up of the consortiums bidding to the licence as another probable reason for the postponement.
He mentioned: “I need to also ensure that the proprietors and managers from the profitable applicants are, as being the Act states, ‘in shape and right individuals’. Additionally, I have to be sure that no political celebration or political office-bearer has any direct money interest inside the applicant or simply a shareholder of the applicant.”
Enterprise Working day described previously that many of the businesses shortlisted for the tender are politically exposed.
The Gold Rush consortium is led by large-profile businessperson Sandile Zungu, who challenged with the ANC KwaZulu-Natal chair place in 2022 just before dropping out right after he failed to garner more than enough aid, the paper claimed.
One more politically connected bidder is HCI, which is vast majority-owned through the South African Clothes and Textile Personnel’ Union, an affiliate of Cosatu, that's in alliance With all the ANC. CEO Johnny Copelyn donated to President Cyril Ramaphosa’s CR17 marketing campaign with the ANC presidency.
An additional shortlisted bidder, As outlined by Business enterprise Working day, is Thebe Investment decision Corporation, which was Started by ANC leaders in 1992. Thebe is half-owned by Batho Batho Have confidence in. The have faith in has donated R60-million to your ANC considering the fact that 2021, In keeping with declarations built to your electoral commission.
Ithuba, the holder of the licence, is usually from the managing, as is Umbulelo Consortium, led by Afrirent Holdings; and Giya Games, In keeping with Organization Working day.
Vivien Natasen consulted for Giya Games on its bid. GroundUp described in 2022 that Natasen, viaหวย ลาว วัน นี้ his company Neo Methods, contributed R2-million in direction of the luxurious mansion on the then-NLC chair Aflred Nevhutanda — while his firm Neo Solutions had a contract Along with the NLC. Natasen told GroundUp at that time that Neo Answers was “appointed from the NLC’s source chain procedures, as and when services are required”.
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