Announcement of latest lottery licence operator postponed - once again
Announcement of latest lottery licence operator postponed - once again
Blog Article
Parks Tau, the trade and industry minister, has postponed naming a successful bidder to run South Africa’s lottery in the event the tenure of recent operator, Ithuba, finishes in Might up coming yr.
Ithuba’s licence was because of to get expired in May possibly 2023 but was extended for 2 years by Tau’s predecessor Ebrahim Patel following a request through the then newly-appointed board of your Nationwide Lotteries Commission (NLC).
The Board, which was dealing with the corruption that experienced overwhelmed the NLC, also recommended Patel of representations by Ithuba that it had been severely afflicted with the Covid pandemic. This integrated a ban to the sale of lottery tickets at the height in the pandemic.
In terms of the extension, Ithuba had for making contributions towards the NLC for distribution to excellent brings about at the next amount than offered for of their Preliminary licence.
New licence operators are specified 6 months to arrange infrastructure, together with ticket machines countrywide, to just take above from the preceding operator prior to the incumbent’s licence ends. This latest postponement means that there won't be enough time for your easy transition and It's not likely that Tau will prolong Ithuba’s licence once again.
The process of appointing a new licence operator has also been tormented by allegations of conflict of interest as well as other challenges.
GroundUp has discovered the NLC has contingency designs in place to continue funding very good results in for up to a year In the event the lottery plus the sale of lottery tickets are suspended.
The contingency also handles funding from the celebration of litigation by shedding bidders each time a new operator is last but not least announced, which could also derail The graceful functioning with the lottery.
Just in case ticket sales are stopped, the NLC will use its reserves of R3.nine-billion to carry on funding qualifying organisations, a resource with expertise in the contingency strategy instructed GroundUp.
In his weekend statement announcing the postponement, Tau stated: “Sadly, I'm not able to generate a last selection at this stage. Any these kinds of selection at this time would in all superior conscience mean which i have not used my brain with due thought of the many applicable aspects.”
“I've identified issues that require even further analysis. It would be inappropriate to disclose these difficulties now as well as their disclosure could very effectively prejudice the correct adjudication in the awarding in the licence.”
Tau mentioned he was awaiting advice on the best way to make sure the continuation on the lottery while in the interim as well as the “improvement of the programme to finalise this process”.
This, he claimed, should be finished soon after session Along with the National Treasury.”
Tau also hinted within the political make-up of your consortiums bidding for the licence as Yet another doable cause for the postponement.
He said: “I need to also make sure the owners and administrators of your successful applicants are, as the Act states, ‘fit and correct folks’. On top of that, I have to be sure that no political social gathering or political Place of work-bearer has any immediate fiscal interest from the applicant or even a shareholder of your applicant.”
Small business Working day reported previously that a lot of of the businesses shortlisted for that tender are politically uncovered.
The Gold Rush consortium is led by superior-profile businessperson Sandile Zungu, who challenged with the ANC KwaZulu-Natal chair position in 2022 before dropping out after he didn't garner ample help, the paper noted.
A further politically linked bidder is HCI, that's greater part-owned from the South African Outfits and Textile Employees’ Union, an affiliate of Cosatu, that is in alliance While using the ANC. CEO Johnny Copelyn donated to President Cyril Ramaphosa’s CR17 campaign to the ANC presidency.
A further shortlisted bidder, In accordance with Business enterprise Day, is Thebe Expenditure Company, which was Established by ANC leaders in 1992. Thebe is half-owned by Batho Batho Have confidence in. The have confidence in has donated R60-million to your ANC due to the fact 2021, As outlined by declarations manufactured for the electoral commission.
Ithuba, the holder with the licence, can be within the functioning, as is Umbulelo Consortium, led by Afrirent Holdings; and Giya Video games, Based on Business Day.
Vivien Natasen consulted for Giya Game titles on its bid. GroundUp documented in 2022 that Natasen, viaตรวจ รางวัล his firm Neo Options, contributed R2-million towards the posh mansion of the then-NLC chair Aflred Nevhutanda — even though his company Neo Remedies experienced a deal Together with the NLC. Natasen explained to GroundUp At the moment that Neo Options was “appointed throughout the NLC’s provide chain processes, as and when companies are expected”.
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