Announcement of recent lottery licence operator postponed - once again
Announcement of recent lottery licence operator postponed - once again
Blog Article
Parks Tau, the trade and business minister, has postponed naming a winning bidder to operate South Africa’s lottery when the tenure of current operator, Ithuba, ends in May well subsequent yr.
Ithuba’s licence was because of to obtain expired in Might 2023 but was extended for two a long time by Tau’s predecessor Ebrahim Patel after a ask for from the then recently-appointed board of the Nationwide Lotteries Commission (NLC).
The Board, which was working with the corruption that experienced overcome the NLC, also suggested Patel of representations by Ithuba that it had been seriously affected with the Covid pandemic. This involved a ban on the sale of lottery tickets at the peak of the pandemic.
When it comes to the extension, Ithuba experienced to create contributions to the NLC for distribution to very good causes at a higher fee than provided for in their Preliminary licence.
New licence operators are presented 6 months to set up infrastructure, such as ticket machines countrywide, to acquire around in the preceding operator ahead of the incumbent’s licence ends. This most recent postponement signifies that there won't be sufficient time for any easy transition and It is not likely that Tau will prolong Ithuba’s licence once again.
The process of appointing a brand new licence operator has also been plagued by allegations of conflict of desire as well as other problems.
GroundUp has learned the NLC has contingency designs in place to carry on funding great will cause for as much as a 12 months In case the lottery along with the sale of lottery tickets are suspended.
The contingency also covers funding during the event of litigation by shedding bidders any time a new operator is ultimately declared, which could also derail The graceful operating on the lottery.
In case ticket revenue are stopped, the NLC will use its reserves of R3.9-billion to carry on funding qualifying organisations, a supply with familiarity with the contingency system informed GroundUp.
In his weekend statement asserting the postponement, Tau reported: “Regretably, I am not ready for making a closing selection at this time. Any this sort of decision at the moment would in all fantastic conscience indicate which i haven't utilized my mind with because of thought of all the related elements.”
“I have identified issues that have to have further more analysis. It could be inappropriate to disclose these issues now as well as their disclosure could pretty perfectly prejudice the right adjudication in the awarding of your licence.”
Tau mentioned he was awaiting advice on The easiest method to make sure the continuation of the lottery inside the interim as well as “improvement of a programme to finalise this process”.
This, he mentioned, have to be finished after session with the Countrywide Treasury.”
Tau also hinted within the political make-up in the consortiums bidding for your licence as An additional feasible reason for the postponement.
He reported: “I have to also make sure that the entrepreneurs and supervisors of the thriving applicants are, since the Act states, ‘fit and suitable folks’. Furthermore, I need to ensure that no political get together or political Business-bearer has any immediate financial interest inside the applicant or possibly a shareholder with the applicant.”
Business enterprise Working day described Earlier that a lot of of the companies shortlisted for your tender are politically uncovered.
The Gold Hurry consortium is led by large-profile businessperson Sandile Zungu, who challenged for your ANC KwaZulu-Natal chair position in 2022 in advance of dropping out soon after he failed to garner plenty of help, the paper claimed.
One more politically related bidder is HCI, that's majority-owned with the South African Outfits and Textile Workers’ Union, an affiliate of Cosatu, that's in alliance While using the ANC. CEO Johnny Copelyn donated to President Cyril Ramaphosa’s CR17 marketing campaign for the ANC presidency.
Yet another shortlisted bidder, In line with Small business Working day, is Thebe Financial commitment Company, which was Started by ANC leaders in 1992. Thebe is half-owned by Batho Batho Trust. The trust has donated R60-million into the ANC due to the fact 2021, In line with declarations created to the electoral Fee.
Ithuba, the holder from the licence, is usually inside the functioning, as is Umbulelo Consortium, led by Afrirent Holdings; and Giya Video games, In keeping with Company Day.
Vivien Natasen consulted for Giya Online games on its bid. GroundUp claimed in 2022 that Natasen, throughหวย วัน นี้ his corporation Neo Answers, contributed R2-million towards the posh mansion with the then-NLC chair Aflred Nevhutanda — whilst his firm Neo Solutions had a contract Together with the NLC. Natasen explained to GroundUp At the moment that Neo Methods was “appointed with the NLC’s supply chain processes, as and when providers are necessary”.
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