Announcement of latest lottery licence operator postponed - all over again
Announcement of latest lottery licence operator postponed - all over again
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Parks Tau, the trade and field minister, has postponed naming a winning bidder to run South Africa’s lottery once the tenure of existing operator, Ithuba, finishes in May future yr.
Ithuba’s licence was due to obtain expired in May possibly 2023 but was prolonged for two yrs by Tau’s predecessor Ebrahim Patel after a request by the then newly-appointed board with the Countrywide Lotteries Commission (NLC).
The Board, which was addressing the corruption that experienced confused the NLC, also advised Patel of representations by Ithuba that it had been severely impacted because of the Covid pandemic. This bundled a ban on the sale of lottery tickets at the peak of your pandemic.
With regards to the extension, Ithuba had to create contributions towards the NLC for distribution to good causes at the next amount than presented for within their Original licence.
New licence operators are presented six months to build infrastructure, which includes ticket equipment countrywide, to just take over through the previous operator prior to the incumbent’s licence finishes. This latest postponement implies that there won't be ample time for a smooth transition and It really is unlikely that Tau will prolong Ithuba’s licence yet again.
The whole process of appointing a new licence operator has also been plagued by allegations of conflict of interest along with other concerns.
GroundUp has discovered that the NLC has contingency designs in position to continue funding superior will cause for around a year If your lottery along with the sale of lottery tickets are suspended.
The contingency also covers funding from the occasion of litigation by shedding bidders when a new operator is eventually declared, which could also derail the smooth operating with the lottery.
In case ticket income are stopped, the NLC will use its reserves of R3.nine-billion to carry on funding qualifying organisations, a resource with knowledge of the contingency strategy advised GroundUp.
In his weekend statement saying the postponement, Tau mentioned: “However, I am not in a position to generate a closing final decision at this time. Any these decision at this time would in all superior conscience signify that I haven't utilized my brain with thanks consideration of many of the applicable components.”
“I've identified matters that need further more evaluation. It might be inappropriate to reveal these issues now and their disclosure could pretty nicely prejudice the right adjudication of the awarding from the licence.”
Tau mentioned he was awaiting tips on The obvious way to ensure the continuation on the lottery from the interim as well as “enhancement of the programme to finalise this method”.
This, he said, must be finished after session Together with the National Treasury.”
Tau also hinted in the political make-up on the consortiums bidding for your licence as Yet another feasible reason behind the postponement.
He mentioned: “I need to also be certain that the proprietors and supervisors of your productive applicants are, given that the Act states, ‘in shape and good persons’. Furthermore, I have to be sure that no political party or political Business office-bearer has any immediate fiscal desire from the applicant or simply a shareholder of your applicant.”
Business enterprise Day noted previously that the majority of the businesses shortlisted to the tender are politically uncovered.
The Gold Rush consortium is led by superior-profile businessperson Sandile Zungu, who challenged to the ANC KwaZulu-Natal chair position in 2022 before dropping out immediately after he failed to garner ample support, the paper documented.
A different politically connected bidder is HCI, which can be the greater part-owned via the South African Outfits and Textile Personnel’ Union, an affiliate of Cosatu, and that is in alliance While using the ANC. CEO Johnny Copelyn donated to President Cyril Ramaphosa’s CR17 marketing campaign to the ANC presidency.
One more shortlisted bidder, In line with Enterprise Working day, is Thebe Financial investment Corporation, which was founded by ANC leaders in 1992. Thebe is fifty percent-owned by Batho Batho Trust. The belief has donated R60-million for the ANC considering the fact that 2021, In accordance with declarations built towards the electoral commission.
Ithuba, the holder in the licence, can be during the functioning, as is Umbulelo Consortium, led by Afrirent Holdings; and Giya Game titles, In keeping with Business enterprise Working day.
Vivien Natasen consulted for Giya Video games on its bid. GroundUp reported in 2022 that Natasen, throughluckyvip77 his organization Neo Remedies, contributed R2-million toward the luxurious mansion with the then-NLC chair Aflred Nevhutanda — when his corporation Neo Alternatives had a contract with the NLC. Natasen explained to GroundUp at that time that Neo Options was “appointed through the NLC’s offer chain processes, as and when products and services are essential”.