Announcement of latest lottery licence operator postponed - yet again
Announcement of latest lottery licence operator postponed - yet again
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Parks Tau, the trade and industry minister, has postponed naming a profitable bidder to operate South Africa’s lottery if the tenure of recent operator, Ithuba, ends in May perhaps upcoming yr.
Ithuba’s licence was thanks to get expired in May perhaps 2023 but was extended for 2 many years by Tau’s predecessor Ebrahim Patel after a request from the then recently-appointed board of the Nationwide Lotteries Commission (NLC).
The Board, which was working with the corruption that experienced overwhelmed the NLC, also recommended Patel of representations by Ithuba that it had been seriously impacted through the Covid pandemic. This integrated a ban within the sale of lottery tickets at the peak with the pandemic.
Regarding the extension, Ithuba experienced to generate contributions to the NLC for distribution to great leads to at a better fee than delivered for inside their Preliminary licence.
New licence operators are offered 6 months to create infrastructure, which includes ticket equipment countrywide, to just take above within the earlier operator ahead of the incumbent’s licence ends. This most up-to-date postponement means that there will not be enough time to get a clean changeover and It really is not likely that Tau will extend Ithuba’s licence once more.
The entire process of appointing a completely new licence operator has also been suffering from allegations of conflict of desire and other concerns.
GroundUp has discovered that the NLC has contingency programs in place to carry on funding great triggers for around a year if the lottery and the sale of lottery tickets are suspended.
The contingency also handles funding from the function of litigation by shedding bidders whenever a new operator is last but not least declared, which could also derail The sleek operating on the lottery.
In case ticket gross sales are stopped, the NLC will use its reserves of R3.9-billion to continue funding qualifying organisations, a source with understanding of the contingency system explained to GroundUp.
In his weekend statement announcing the postponement, Tau mentioned: “Regrettably, I am not in a position to create a last choice at this time. Any such decision presently would in all very good conscience imply which i have not utilized my mind with owing consideration of many of the appropriate factors.”
“I have determined issues that require more analysis. It will be inappropriate to reveal these issues now and their disclosure could really very well prejudice the appropriate adjudication of your awarding of the licence.”
Tau stated he was awaiting suggestions on the best way to make sure the continuation with the lottery from the interim plus the “growth of a programme to finalise this method”.
This, he mentioned, should be finished immediately after consultation While using the National Treasury.”
Tau also hinted within the political makeup on the consortiums bidding with the licence as Yet another probable cause of the postponement.
He explained: “I need to also ensure that the proprietors and professionals on the thriving applicants are, as the Act states, ‘match and correct persons’. Additionally, I must ensure that no political party or political office-bearer has any immediate economic interest during the applicant or possibly a shareholder from the applicant.”
Business 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 just after he didn't garner enough help, the paper documented.
One more politically linked bidder is HCI, that's the greater part-owned because of the South African Garments and Textile Employees’ Union, an affiliate of Cosatu, which can be in alliance With all the ANC. CEO Johnny Copelyn donated to President Cyril Ramaphosa’s CR17 marketing campaign for that ANC presidency.
Yet another shortlisted bidder, Based on Business enterprise Day, is Thebe Expense Corporation, which was Established by ANC leaders in 1992. Thebe is half-owned by Batho Batho Rely on. The have confidence in has donated R60-million to your ANC because 2021, As outlined by declarations made towards the electoral commission.
Ithuba, the holder from the licence, can be while in the jogging, as is Umbulelo Consortium, led by Afrirent Holdings; and Giya Online games, As outlined by Small business Day.
Vivien Natasen consulted for Giya Games on its bid. GroundUp claimed in 2022 that Natasen, byหุ้น ชอง 9 his organization Neo Alternatives, contributed R2-million to the luxurious mansion with the then-NLC chair Aflred Nevhutanda — when his corporation Neo Alternatives had a contract with the NLC. Natasen explained to GroundUp at that time that Neo Options was “appointed in the NLC’s offer chain procedures, as and when expert services are necessary”.