Announcement of new lottery licence operator postponed - again
Announcement of new lottery licence operator postponed - again
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Parks Tau, the trade and market minister, has postponed naming a successful bidder to run South Africa’s lottery once the tenure of existing operator, Ithuba, ends in May perhaps upcoming yr.
Ithuba’s licence was thanks to own expired in May 2023 but was prolonged for 2 several years by Tau’s predecessor Ebrahim Patel following a request because of the then newly-appointed board in the Countrywide Lotteries Fee (NLC).
The Board, which was handling the corruption that experienced confused the NLC, also advised Patel of representations by Ithuba that it were seriously afflicted from the Covid pandemic. This incorporated a ban about the sale of lottery tickets at the peak on the pandemic.
Concerning the extension, Ithuba had to create contributions towards the NLC for distribution to excellent leads to at a greater rate than provided for inside their Preliminary licence.
New licence operators are given 6 months to setup infrastructure, including ticket devices countrywide, to take in excess of in the past operator ahead of the incumbent’s licence ends. This most current postponement ensures that there will not be adequate time for the sleek changeover and It's unlikely that Tau will extend Ithuba’s licence once again.
The entire process of appointing a different licence operator has also been stricken by allegations of conflict of desire as well as other troubles.
GroundUp has figured out the NLC has contingency strategies in place to carry on funding excellent leads to for up to a 12 months In the event the lottery along with the sale of lottery tickets are suspended.
The contingency also covers funding in the celebration of litigation by losing bidders every time a new operator is lastly introduced, which could also derail The sleek functioning in the lottery.
Just in case 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 announcing the postponement, Tau stated: “Regrettably, I am not ready to help make a closing conclusion at this time. Any these kinds of selection at this time would in all superior conscience signify that I have not used my brain with due thought of all of the suitable aspects.”
“I've identified matters that call for further evaluation. It might be inappropriate to reveal these challenges now as well as their disclosure could extremely effectively prejudice the right adjudication with the awarding of your licence.”
Tau said he was awaiting guidance on The ultimate way to make sure the continuation with the lottery from the interim plus the “growth of a programme to finalise this method”.
This, he explained, has to be carried out just after consultation Using the Nationwide Treasury.”
Tau also hinted in the political makeup of your consortiums bidding to the licence as A further achievable reason behind the postponement.
He stated: “I have to also be sure that the owners and managers in the profitable applicants are, given that the Act states, ‘in good shape and proper folks’. In addition, I need to make sure no political bash or political Business-bearer has any direct monetary desire from the applicant or even a shareholder of the applicant.”
Business enterprise Day claimed Formerly that most of the companies shortlisted for that tender are politically uncovered.
The Gold Rush consortium is led by substantial-profile businessperson Sandile Zungu, who challenged with the ANC KwaZulu-Natal chair place in 2022 ahead of dropping out after he failed to garner sufficient assist, the paper described.
A different politically linked bidder is HCI, and that is the vast majority-owned by the South African Outfits and Textile Personnel’ Union, an affiliate of Cosatu, and that is in alliance Along with the ANC. CEO Johnny Copelyn donated to President Cyril Ramaphosa’s CR17 campaign for the ANC presidency.
A further shortlisted bidder, As outlined by Enterprise Working day, is Thebe Expenditure Company, which was Started by ANC leaders in 1992. Thebe is 50 %-owned by Batho Batho Have confidence in. The trust has donated R60-million on the ANC because 2021, In keeping with declarations produced for the electoral commission.
Ithuba, the holder on the licence, is likewise in the operating, as is Umbulelo Consortium, led by Afrirent Holdings; and Giya Video games, In line with Small business Day.
Vivien Natasen consulted for Giya Games on its bid. GroundUp reported in 2022 that Natasen, throughหวย ออก his business Neo Answers, contributed R2-million toward the posh mansion on the then-NLC chair Aflred Nevhutanda — even though his firm Neo Remedies had a deal While using the NLC. Natasen instructed GroundUp at that time that Neo Solutions was “appointed in the NLC’s provide chain procedures, as and when companies are needed”.