Announcement of new lottery licence operator postponed - once more

Parks Tau, the trade and marketplace minister, has postponed naming a successful bidder to run South Africa’s lottery in the event the tenure of existing operator, Ithuba, ends in May well future 12 months.

Ithuba’s licence was because of to possess expired in May well 2023 but was extended for two many years by Tau’s predecessor Ebrahim Patel following a ask for with the then newly-appointed board on the Countrywide Lotteries Commission (NLC).

The Board, which was working with the corruption that experienced confused the NLC, also advised Patel of representations by Ithuba that it were severely affected with the Covid pandemic. This bundled a ban on the sale of lottery tickets at the peak of the pandemic.

With regards to the extension, Ithuba had to generate contributions to your NLC for distribution to superior causes at a higher price than supplied for of their First licence.

New licence operators are provided 6 months to put in place infrastructure, such as ticket devices countrywide, to take about in the past operator before the incumbent’s licence ends. This most up-to-date postponement means that there will not be adequate time for the clean changeover and It is unlikely that Tau will extend Ithuba’s licence once more.

The entire process of appointing a completely new licence operator has also been plagued by allegations of conflict of curiosity and other concerns.

GroundUp has learned that the NLC has contingency ideas in place to carry on funding superior will cause for as many as a yr When the lottery and the sale of lottery tickets are suspended.

The contingency also addresses funding inside the event of litigation by shedding bidders whenever a new operator is at last announced, which could also derail The graceful running in the lottery.

Just in case ticket sales are stopped, the NLC will use its reserves of R3.9-billion to continue funding qualifying organisations, a source with familiarity with the contingency system explained to GroundUp.

In his weekend assertion saying the postponement, Tau claimed: “Regretably, I'm not ready to help make a final selection at this stage. Any this kind of selection at this time would in all superior conscience mean that I haven't utilized my intellect with because of thing to consider of every one of the related components.”

“I have recognized issues that require even more analysis. It would be inappropriate to disclose these concerns now as well as their disclosure could pretty nicely prejudice the correct adjudication in the awarding on the licence.”

Tau claimed he was awaiting information on The obvious way to ensure the continuation on the lottery from the interim plus the “progress of the programme to finalise this method”.

This, he explained, have to be accomplished right after consultation While using the Countrywide Treasury.”

Tau also hinted with the political makeup with the consortiums bidding for your licence as A further achievable reason for the postponement.

He explained: “I need to also make sure that the house owners and administrators of the productive applicants are, as being the Act states, ‘in good shape and proper persons’. Additionally, I must make sure that no political get together or political Business office-bearer has any direct economic interest within the applicant or a shareholder of your applicant.”

Business enterprise Day noted previously that most of the businesses shortlisted for the tender are politically uncovered.

The Gold Hurry consortium is led by large-profile businessperson Sandile Zungu, who challenged with the ANC KwaZulu-Natal chair place in 2022 in advance of dropping out following he did not garner enough help, the paper claimed.

Yet another politically related bidder is HCI, that is the greater part-owned from the South African Garments and Textile Personnel’ Union, an affiliate of Cosatu, which is in alliance Using the ANC. CEO Johnny Copelyn donated to President Cyril Ramaphosa’s CR17 campaign for your ANC presidency.

An additional shortlisted bidder, In accordance with Enterprise Working day, is Thebe Investment Corporation, which was Established by ANC leaders in 1992. Thebe is 50 percent-owned by Batho Batho Believe in. The trust has donated R60-million to your ANC considering that 2021, In accordance with declarations built for the electoral Fee.

Ithuba, the holder of your licence, can also be from the running, as is Umbulelo Consortium, led by Afrirent Holdings; and Giya Games, In accordance with Small business Day.

Vivien Natasen consulted for Giya Video games on its bid. GroundUp noted in 2022 that Natasen, by way ofตัว หวย his organization Neo Remedies, contributed R2-million toward the luxurious mansion with the then-NLC chair Aflred Nevhutanda — though his company Neo Solutions experienced a agreement With all the NLC. Natasen informed GroundUp at that time that Neo Alternatives was “appointed from the NLC’s provide chain procedures, as and when expert services are necessary”.

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