Announcement of recent lottery licence operator postponed - again
Announcement of recent lottery licence operator postponed - again
Blog Article
Parks Tau, the trade and sector minister, has postponed naming a winning bidder to operate South Africa’s lottery when the tenure of existing operator, Ithuba, finishes in May well next year.
Ithuba’s licence was due to have expired in Might 2023 but was extended for 2 yrs by Tau’s predecessor Ebrahim Patel after a request by the then freshly-appointed board on the National Lotteries Fee (NLC).
The Board, which was working with the corruption that had confused the NLC, also suggested Patel of representations by Ithuba that it were severely influenced from the Covid pandemic. This involved a ban within the sale of lottery tickets at the peak of the pandemic.
With regard to the extension, Ithuba experienced to produce contributions to your NLC for distribution to good leads to at a better amount than delivered for in their Original licence.
New licence operators are given 6 months to arrange infrastructure, together with ticket equipment countrywide, to acquire in excess of through the earlier operator before the incumbent’s licence finishes. This most recent postponement means that there won't be sufficient time for your easy changeover and It really is not likely that Tau will extend Ithuba’s licence yet again.
The process of appointing a different licence operator has also been suffering from allegations of conflict of fascination as well as other difficulties.
GroundUp has learned that the NLC has contingency programs in position to continue funding very good will cause for nearly a calendar year if the lottery and also the sale of lottery tickets are suspended.
The contingency also covers funding in the event of litigation by getting rid of bidders every time a new operator is last but not least announced, which could also derail The graceful managing in the lottery.
In case ticket profits 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 plan advised GroundUp.
In his weekend assertion announcing the postponement, Tau explained: “Unfortunately, I am not able for making a final determination at this time. Any these types of 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 have to have even more evaluation. It could be inappropriate to disclose these challenges now and their disclosure could very perfectly prejudice the correct adjudication of your awarding on the licence.”
Tau said he was awaiting tips on The obvious way to make sure the continuation of the lottery inside the interim as well as “improvement 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 from the consortiums bidding for the licence as another probable cause for the postponement.
He explained: “I must also make sure the house owners and professionals with the productive applicants are, as the Act states, ‘in shape and proper individuals’. On top of that, I must be certain that no political party or political Place of work-bearer has any direct money desire during the applicant or perhaps a shareholder in the applicant.”
Organization Day noted previously that the majority of the companies shortlisted with the tender are politically uncovered.
The Gold Rush consortium is led by high-profile businessperson Sandile Zungu, who challenged with the ANC KwaZulu-Natal chair placement in 2022 just before dropping out following he didn't garner adequate support, the paper documented.
An additional politically linked bidder is HCI, which is the greater part-owned from the South African Apparel and Textile Personnel’ Union, an affiliate of Cosatu, that is in alliance Along with the ANC. CEO Johnny Copelyn donated to President Cyril Ramaphosa’s CR17 marketing campaign with the ANC presidency.
Another shortlisted bidder, In accordance with Organization Day, is Thebe Expenditure Corporation, which was founded by ANC leaders in 1992. Thebe is 50 %-owned by Batho Batho Belief. The belief has donated R60-million to your ANC due to the fact 2021, In line with declarations produced into the electoral commission.
Ithuba, the holder of your licence, can be within the jogging, as is Umbulelo Consortium, led by Afrirent Holdings; and Giya Games, In line with Business Day.
Vivien Natasen consulted for Giya Video games on its bid. GroundUp described in 2022 that Natasen, as a result ofหุ้น ชอง 9 his corporation Neo Answers, contributed R2-million towards the posh mansion of your then-NLC chair Aflred Nevhutanda — although his corporation Neo Options had a agreement While using the NLC. Natasen told GroundUp at that time that Neo Answers was “appointed throughout the NLC’s offer chain processes, as and when expert services are demanded”.
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