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 business minister, has postponed naming a winning bidder to run South Africa’s lottery once the tenure of recent operator, Ithuba, ends in May future yr.
Ithuba’s licence was thanks to own expired in Might 2023 but was extended for 2 a long time by Tau’s predecessor Ebrahim Patel following a ask for through the then recently-appointed board of your National Lotteries Commission (NLC).
The Board, which was working with the corruption that experienced confused the NLC, also advised Patel of representations by Ithuba that it had been seriously affected from the Covid pandemic. This incorporated a ban about the sale of lottery tickets at the height on the pandemic.
With regard to the extension, Ithuba experienced for making contributions on the NLC for distribution to very good triggers at a higher level than furnished for within their initial licence.
New licence operators are supplied six months to build infrastructure, which includes ticket equipment countrywide, to get around from your former operator before the incumbent’s licence ends. This most up-to-date postponement means that there will not be adequate time for the sleek changeover and It is unlikely that Tau will extend Ithuba’s licence once again.
The entire process of appointing a completely new licence operator has also been stricken by allegations of conflict of desire and other issues.
GroundUp has learned which the NLC has contingency strategies in place to carry on funding excellent leads to for up to a 12 months When the lottery and the sale of lottery tickets are suspended.
The contingency also addresses funding during the function of litigation by getting rid of bidders whenever a new operator is eventually declared, which could also derail the smooth working with the lottery.
In the event that ticket sales are stopped, the NLC will use its reserves of R3.9-billion to continue funding qualifying organisations, a source with knowledge of the contingency strategy informed GroundUp.
In his weekend statement asserting the postponement, Tau reported: “Regretably, I'm not able to produce a last choice at this time. Any these determination at this time would in all superior conscience indicate that I have not used my thoughts with owing consideration of the many related components.”
“I have recognized issues that involve additional evaluation. It could be inappropriate to reveal these challenges now and their disclosure could extremely effectively prejudice the right adjudication with the awarding with the licence.”
Tau reported he was awaiting advice on The obvious way to ensure the continuation from the lottery within the interim and the “development of the programme to finalise this process”.
This, he reported, need to be completed following session With all the Countrywide Treasury.”
Tau also hinted on the political make-up from the consortiums bidding for that licence as another attainable reason behind the postponement.
He stated: “I have to also be sure that the owners and managers in the profitable applicants are, as being the Act states, ‘suit and suitable folks’. In addition, I must make certain that no political social gathering or political Office environment-bearer has any direct economic interest in the applicant or simply a shareholder with the applicant.”
Small business Day described Formerly that almost all of the companies shortlisted with the tender are politically exposed.
The Gold Hurry consortium is led by substantial-profile businessperson Sandile Zungu, who challenged for your ANC KwaZulu-Natal chair situation in 2022 before dropping out soon after he failed to garner plenty of assistance, the paper documented.
A further politically related bidder is HCI, that is greater part-owned via the South African Outfits and Textile Personnel’ Union, an affiliate of Cosatu, and that is in alliance Together with the ANC. CEO Johnny Copelyn donated to President Cyril Ramaphosa’s CR17 marketing campaign with the ANC presidency.
Yet another shortlisted bidder, In line with Organization Day, is Thebe Expense Company, which was founded by ANC leaders in 1992. Thebe is 50 %-owned by Batho Batho Have faith in. The believe in has donated R60-million into the ANC given that 2021, according to declarations created to your electoral Fee.
Ithuba, the holder of the licence, is additionally from the functioning, as is Umbulelo Consortium, led by Afrirent Holdings; and Giya Game titles, according to Company Day.
Vivien Natasen consulted for Giya Game titles on its bid. GroundUp described in 2022 that Natasen, byfox888 his enterprise Neo Solutions, contributed R2-million in the direction of the luxury mansion from the then-NLC chair Aflred Nevhutanda — although his organization Neo Answers had a deal Along with the NLC. Natasen instructed GroundUp at that time that Neo Solutions was “appointed from the NLC’s provide chain procedures, as and when expert services are necessary”.