Announcement of recent lottery licence operator postponed - again
Announcement of recent lottery licence operator postponed - again
Blog Article
Parks Tau, the trade and market minister, has postponed naming a winning bidder to run South Africa’s lottery in the event the tenure of existing operator, Ithuba, finishes in May upcoming year.
Ithuba’s licence was due to possess expired in Could 2023 but was extended for 2 decades 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 dealing with the corruption that experienced overwhelmed the NLC, also recommended Patel of representations by Ithuba that it were severely afflicted through the Covid pandemic. This included a ban about the sale of lottery tickets at the peak from the pandemic.
In terms of the extension, Ithuba had to generate contributions into the NLC for distribution to great brings about at an increased rate than offered for within their Preliminary licence.
New licence operators are presented 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 latest postponement ensures that there will not be ample time for the smooth transition and It is unlikely that Tau will increase Ithuba’s licence once again.
The whole process of appointing a whole new licence operator has also been plagued by allegations of conflict of curiosity and other concerns.
GroundUp has acquired which the NLC has contingency ideas in place to continue funding excellent will cause for nearly a calendar year Should the lottery and the sale of lottery tickets are suspended.
The contingency also handles funding during the party of litigation by shedding bidders each time a new operator is lastly declared, which could also derail The sleek operating of 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 supply with knowledge of the contingency prepare told GroundUp.
In his weekend statement saying the postponement, Tau reported: “Regrettably, I'm not ready to create a ultimate conclusion at this time. Any such selection at the moment would in all very good conscience signify which i have not applied my mind with due thing to consider of many of the suitable components.”
“I have identified issues that demand further evaluation. It could be inappropriate to reveal these difficulties now and their disclosure could pretty well prejudice the proper adjudication of your awarding on the licence.”
Tau mentioned he was awaiting guidance on The obvious way to make sure the continuation with the lottery during the interim as well as “enhancement of a programme to finalise this process”.
This, he claimed, should be carried out soon after session with the National Treasury.”
Tau also hinted on the political makeup from the consortiums bidding to the licence as A different probable reason behind the postponement.
He claimed: “I have to also be sure that the house owners and administrators with the thriving applicants are, given that the Act states, ‘fit and right individuals’. In addition, I have to ensure that no political party or political office-bearer has any immediate monetary fascination while in the applicant or perhaps a shareholder on the applicant.”
Business Working day reported Formerly that most of the companies shortlisted for the tender are politically uncovered.
The Gold Rush consortium is led by substantial-profile businessperson Sandile Zungu, who challenged to the ANC KwaZulu-Natal chair place in 2022 just before dropping out soon after he failed to garner more than enough assist, the paper noted.
A further politically linked bidder is HCI, that is the vast majority-owned through the South African Clothing and Textile Employees’ Union, an affiliate of Cosatu, which happens to be in alliance While using the ANC. CEO Johnny Copelyn donated to President Cyril Ramaphosa’s CR17 campaign with the ANC presidency.
Yet another shortlisted bidder, according to Organization Working day, is Thebe Expenditure Corporation, which was Launched by ANC leaders in 1992. Thebe is 50 %-owned by Batho Batho Believe in. The have faith in has donated R60-million into the ANC given that 2021, As outlined by declarations built to your electoral Fee.
Ithuba, the holder of your licence, is also during the jogging, as is Umbulelo Consortium, led by Afrirent Holdings; and Giya Video games, In line with Organization Working day.
Vivien Natasen consulted for Giya Online games on its bid. GroundUp reported in 2022 that Natasen, by way ofhihuay his business Neo Solutions, contributed R2-million toward the luxury mansion on the then-NLC chair Aflred Nevhutanda — though his organization Neo Alternatives experienced a contract With all the NLC. Natasen instructed GroundUp At the moment that Neo Methods was “appointed through the NLC’s supply chain processes, as and when providers are expected”.
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