Announcement of new lottery licence operator postponed - all over again
Announcement of new lottery licence operator postponed - all over again
Blog Article
Parks Tau, the trade and market minister, has postponed naming a profitable bidder to run South Africa’s lottery once the tenure of latest operator, Ithuba, finishes in May next year.
Ithuba’s licence was due to have expired in May 2023 but was prolonged for two a long time by Tau’s predecessor Ebrahim Patel after a ask for with the then newly-appointed board of the Nationwide Lotteries Commission (NLC).
The Board, which was dealing with the corruption that had confused the NLC, also suggested Patel of representations by Ithuba that it were severely influenced from the Covid pandemic. This involved a ban within the sale of lottery tickets at the peak of the pandemic.
Regarding the extension, Ithuba experienced to create contributions for the NLC for distribution to fantastic causes at a greater charge than presented for inside their First licence.
New licence operators are supplied 6 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 latest postponement ensures that there will not be ample time for the smooth transition and It is unlikely that Tau will increase Ithuba’s licence once again.
The whole process of appointing a fresh licence operator has also been stricken by allegations of conflict of interest and other concerns.
GroundUp has figured out which the NLC has contingency designs set up to carry on funding good leads to for as many as a yr Should the lottery plus the sale of lottery tickets are suspended.
The contingency also covers funding from the party of litigation by losing bidders whenever a new operator is last but not least declared, which could also derail the smooth managing on the lottery.
In the event ticket profits are stopped, the NLC will use its reserves of R3.nine-billion to carry on funding qualifying organisations, a supply with expertise in the contingency approach advised GroundUp.
In his weekend statement saying the postponement, Tau mentioned: “Regretably, I am not ready to create a remaining selection at this time. Any this sort of conclusion at the moment would in all very good conscience mean that I have not utilized my head with thanks thing to consider of all the related elements.”
“I have discovered matters that demand more analysis. It will be inappropriate to disclose these problems now as well as their disclosure could incredibly properly prejudice the correct adjudication of your awarding on the licence.”
Tau explained he was awaiting suggestions on The ultimate way to make sure the continuation of your lottery while in the interim and also the “development of a programme to finalise this method”.
This, he stated, must be accomplished just after consultation With all the Nationwide Treasury.”
Tau also hinted with the political make-up on the consortiums bidding for that licence as A different doable reason behind the postponement.
He claimed: “I have to also make certain that the proprietors and professionals in the profitable applicants are, as being the Act states, ‘fit and proper individuals’. Additionally, I need to be sure that no political occasion or political Place of work-bearer has any immediate economic desire while in the applicant or a shareholder with the applicant.”
Enterprise Working day claimed previously that many of the businesses shortlisted to the tender are politically exposed.
The Gold Rush consortium is led by higher-profile businessperson Sandile Zungu, who challenged for the ANC KwaZulu-Natal chair placement in 2022 before dropping out following he didn't garner plenty of guidance, the paper described.
A further politically linked bidder is HCI, that's greater part-owned with the South African Clothes 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 campaign for your ANC presidency.
A further shortlisted bidder, In line with Company 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 towards the ANC due to the fact 2021, In keeping with declarations made to the electoral commission.
Ithuba, the holder on the licence, is additionally in the jogging, as is Umbulelo Consortium, led by Afrirent Holdings; and Giya Video games, In keeping with Enterprise Working day.
Vivien Natasen consulted for Giya Games on its bid. GroundUp documented in 2022 that Natasen, as a result ofหวย ออก his enterprise Neo Remedies, contributed R2-million in the direction of the luxurious mansion from the then-NLC chair Aflred Nevhutanda — when his company Neo Remedies experienced a deal Using the NLC. Natasen advised GroundUp at that time that Neo Alternatives was “appointed in the NLC’s supply chain processes, as and when providers are essential”.
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