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 field minister, has postponed naming a profitable bidder to run South Africa’s lottery if the tenure of current operator, Ithuba, ends in Could following 12 months.
Ithuba’s licence was owing to own expired in May possibly 2023 but was extended for 2 years by Tau’s predecessor Ebrahim Patel following a request with the then newly-appointed board of the Countrywide Lotteries Commission (NLC).
The Board, which was handling the corruption that had confused the NLC, also recommended Patel of representations by Ithuba that it were severely afflicted with the Covid pandemic. This included a ban about the sale of lottery tickets at the peak from the pandemic.
In terms of the extension, Ithuba had for making contributions to the NLC for distribution to excellent will cause at a higher price than presented for inside their First licence.
New licence operators are supplied six months to put in place infrastructure, like ticket devices countrywide, to get more than in the previous operator ahead of the incumbent’s licence ends. This newest postponement ensures that there will not be ample time for the smooth changeover and It's not likely that Tau will increase Ithuba’s licence once again.
The process of appointing a whole new licence operator has also been plagued by allegations of conflict of curiosity and other troubles.
GroundUp has acquired that the NLC has contingency ideas in place to continue funding excellent brings about for as many as a 12 months Should the lottery and also the sale of lottery tickets are suspended.
The contingency also handles funding during the celebration of litigation by shedding bidders whenever a new operator is last but not least introduced, which could also derail The sleek managing of your lottery.
In case ticket product 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 assertion saying the postponement, Tau explained: “Unfortunately, I am not ready to help make a final conclusion at this stage. Any these types of selection presently would in all good conscience signify which i haven't used my mind with because of thought of all the applicable elements.”
“I have identified issues that involve further more analysis. It might be inappropriate to disclose these issues now as well as their disclosure could really nicely prejudice the appropriate adjudication with the awarding on the licence.”
Tau stated he was awaiting information on The easiest method to make sure the continuation from the lottery from the interim as well as the “enhancement of the programme to finalise this method”.
This, he stated, need to be finished after session With all the Nationwide Treasury.”
Tau also hinted for the political make-up of the consortiums bidding for your licence as One more doable cause for the postponement.
He reported: “I have to also be sure that the owners and managers of the effective applicants are, as the Act states, ‘healthy and appropriate persons’. Also, I must make sure no political social gathering or political Place of work-bearer has any immediate financial curiosity from the applicant or a shareholder on the applicant.”
Business enterprise Working day reported previously that many of the companies shortlisted for your tender are politically exposed.
The Gold Rush consortium is led by substantial-profile businessperson Sandile Zungu, who challenged to the ANC KwaZulu-Natal chair place in 2022 prior to dropping out following he didn't garner enough aid, the paper claimed.
A different politically related bidder is HCI, which happens to be majority-owned by the South African Outfits and Textile Staff’ Union, an affiliate of Cosatu, that is in alliance with the ANC. CEO Johnny Copelyn donated to President Cyril Ramaphosa’s CR17 campaign with the ANC presidency.
A different shortlisted bidder, In accordance with Business enterprise Working day, is Thebe Financial investment Company, which was Established by ANC leaders in 1992. Thebe is half-owned by Batho Batho Have confidence in. The have faith in has donated R60-million into the ANC because 2021, Based on declarations made to the electoral Fee.
Ithuba, the holder in the licence, can also be from the working, as is Umbulelo Consortium, led by Afrirent Holdings; and Giya Games, according to Business enterprise Day.
Vivien Natasen consulted for Giya Video games on its bid. GroundUp described in 2022 that Natasen, throughhihuay his firm Neo Options, contributed R2-million to the luxury mansion with the then-NLC chair Aflred Nevhutanda — whilst his firm Neo Solutions had a contract While using the NLC. Natasen told GroundUp at that time that Neo Remedies was “appointed in the NLC’s supply chain processes, as and when providers are essential”.
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