Announcement of new lottery licence operator postponed - again
Announcement of new lottery licence operator postponed - again
Blog Article
Parks Tau, the trade and field minister, has postponed naming a successful bidder to operate South Africa’s lottery when the tenure of existing operator, Ithuba, ends in May well future year.
Ithuba’s licence was thanks to have expired in May 2023 but was prolonged for two a long time by Tau’s predecessor Ebrahim Patel after a ask for because of the then recently-appointed board from the Countrywide Lotteries Commission (NLC).
The Board, which was managing the corruption that experienced overwhelmed the NLC, also encouraged Patel of representations by Ithuba that it had been seriously afflicted with the Covid pandemic. This provided a ban on the sale of lottery tickets at the height in the pandemic.
With regard to the extension, Ithuba experienced to make contributions to your NLC for distribution to very good leads to at the next charge than furnished for in their Preliminary licence.
New licence operators are supplied 6 months to arrange infrastructure, which includes ticket equipment countrywide, to just take in excess of with the previous operator prior to the incumbent’s licence ends. This most up-to-date postponement ensures that there won't be enough time for your easy transition and It is not likely that Tau will extend Ithuba’s licence yet again.
The process of appointing a whole new licence operator has also been affected by allegations of conflict of curiosity along with other issues.
GroundUp has uncovered which the NLC has contingency designs in position to carry on funding excellent leads to for nearly a yr Should the lottery along with the sale of lottery tickets are suspended.
The contingency also handles funding in the occasion of litigation by dropping bidders every time a new operator is at last declared, which could also derail The sleek managing on the lottery.
In the event ticket product sales are stopped, the NLC will use its reserves of R3.9-billion to continue funding qualifying organisations, a resource with knowledge of the contingency approach explained to GroundUp.
In his weekend statement asserting the postponement, Tau claimed: “Sadly, I'm not in a position to help make a closing determination at this time. Any these final decision right now would in all great conscience signify that I have not used my brain with owing thing to consider of each of the suitable things.”
“I've identified matters that require more evaluation. It could be inappropriate to reveal these concerns now and their disclosure could very well prejudice the appropriate adjudication in the awarding from the licence.”
Tau stated he was awaiting advice on The simplest way to make sure the continuation in the lottery in the interim along with the “development of a programme to finalise this process”.
This, he explained, needs to be completed immediately after session with the Countrywide Treasury.”
Tau also hinted at the political make-up of the consortiums bidding for the licence as another possible reason for the postponement.
He stated: “I need to also make certain that the homeowners and professionals from the successful applicants are, as being the Act states, ‘healthy and correct folks’. Moreover, I need to be certain that no political celebration or political Office environment-bearer has any immediate financial interest inside the applicant or possibly a shareholder with the applicant.”
Business enterprise Working day described Earlier that the majority of of the businesses shortlisted to the tender are politically exposed.
The Gold Hurry consortium is led by significant-profile businessperson Sandile Zungu, who challenged to the ANC KwaZulu-Natal chair place in 2022 before dropping out immediately after he failed to garner more than enough assist, the paper reported.
A different politically connected bidder is HCI, and that is vast majority-owned because of the South African Clothing and Textile Employees’ Union, an affiliate of Cosatu, which happens to be in alliance With all the ANC. CEO Johnny Copelyn donated to President Cyril Ramaphosa’s CR17 campaign to the ANC presidency.
A different shortlisted bidder, according to Business Working day, is Thebe Expense Company, which was Established by ANC leaders in 1992. Thebe is 50 percent-owned by Batho Batho Have faith in. The have faith in has donated R60-million for the ANC given that 2021, Based on declarations built on the electoral Fee.
Ithuba, the holder on the licence, is additionally in 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, throughหวย หุ้น ช่อง 9 his enterprise Neo Remedies, contributed R2-million towards the posh mansion of the then-NLC chair Aflred Nevhutanda — even though his company Neo Answers had a agreement with the NLC. Natasen informed GroundUp at that time that Neo Answers was “appointed from the NLC’s offer chain procedures, as and when products and services are required”.
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