Announcement of recent lottery licence operator postponed - again
Announcement of recent lottery licence operator postponed - again
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Parks Tau, the trade and sector minister, has postponed naming a winning bidder to run South Africa’s lottery once the tenure of recent operator, Ithuba, ends in May future 12 months.
Ithuba’s licence was due to obtain expired in May possibly 2023 but was extended for two many years by Tau’s predecessor Ebrahim Patel following a request by the then recently-appointed board of the Nationwide Lotteries Fee (NLC).
The Board, which was managing the corruption that experienced confused the NLC, also advised Patel of representations by Ithuba that it had been severely afflicted from the Covid pandemic. This provided a ban over the sale of lottery tickets at the peak in the pandemic.
In terms of the extension, Ithuba had to produce contributions to the NLC for distribution to fantastic will cause at a better level than offered for inside their First licence.
New licence operators are supplied 6 months to build infrastructure, such as ticket devices countrywide, to get more than in the prior operator ahead of the incumbent’s licence ends. This hottest postponement implies that there won't be ample time for any sleek transition and It truly is not likely that Tau will extend Ithuba’s licence all over again.
The entire process of appointing a fresh licence operator has also been stricken by allegations of conflict of curiosity as well as other troubles.
GroundUp has figured out that the NLC has contingency options set up to carry on funding fantastic results in for nearly a calendar year Should the lottery and also the sale of lottery tickets are suspended.
The contingency also covers funding during the celebration of litigation by losing bidders when a new operator is finally introduced, which could also derail The graceful jogging in the lottery.
In case ticket income are stopped, the NLC will use its reserves of R3.9-billion to continue funding qualifying organisations, a supply with knowledge of the contingency approach advised GroundUp.
In his weekend statement saying the postponement, Tau stated: “Sad to say, I'm not in a position for making a final selection at this stage. Any these types of determination right now would in all excellent conscience signify which i have not applied my head with owing thought of many of the applicable things.”
“I have discovered matters that demand even more evaluation. It would be inappropriate to disclose these concerns now as well as their disclosure could incredibly properly prejudice the proper adjudication with the awarding from the licence.”
Tau reported he was awaiting information on the best way to ensure the continuation from the lottery from the interim and also the “growth of the programme to finalise this method”.
This, he said, should be completed immediately after session While using the Countrywide Treasury.”
Tau also hinted within the political make-up in the consortiums bidding to the licence as another doable basis for the postponement.
He said: “I have to also be sure that the homeowners and supervisors in the successful applicants are, given that the Act states, ‘in shape and proper individuals’. On top of that, I must be certain that no political bash or political Business-bearer has any direct money fascination while in the applicant or possibly a shareholder with the applicant.”
Business enterprise Working day noted previously that almost all of the companies shortlisted for that 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 after he did not garner sufficient guidance, the paper reported.
A different politically related bidder is HCI, which can be majority-owned with the South African Outfits and Textile Workers’ Union, an affiliate of Cosatu, and that is in alliance With all the ANC. CEO Johnny Copelyn donated to President Cyril Ramaphosa’s CR17 marketing campaign for your ANC presidency.
Yet another shortlisted bidder, according to Enterprise Day, is Thebe Investment Company, which was Started by ANC leaders in 1992. Thebe is 50 %-owned by Batho Batho Rely on. The rely on has donated R60-million for the ANC since 2021, In line with declarations produced on the electoral Fee.
Ithuba, the holder of the licence, can be from the running, as is Umbulelo Consortium, led by Afrirent Holdings; and Giya Games, In line with Small business Working day.
Vivien Natasen consulted for Giya Online games on its bid. GroundUp documented in 2022 that Natasen, byltpbet his company Neo Options, contributed R2-million in direction of the posh mansion on the then-NLC chair Aflred Nevhutanda — even though his firm Neo Alternatives had a contract Using the NLC. Natasen told GroundUp At the moment that Neo Answers was “appointed throughout the NLC’s source chain processes, as and when solutions are required”.