Parks Tau, the trade and sector minister, has postponed naming a successful bidder to run South Africa’s lottery once the tenure of present operator, Ithuba, finishes in May well following year.
Ithuba’s licence was owing to possess expired in May perhaps 2023 but was extended for two decades by Tau’s predecessor Ebrahim Patel after a request by the then newly-appointed board on the Countrywide Lotteries Fee (NLC).
The Board, which was managing the corruption that experienced overcome the NLC, also recommended Patel of representations by Ithuba that it were seriously influenced via the Covid pandemic. This included a ban on the sale of lottery tickets at the peak of your pandemic.
With regards to the extension, Ithuba had to create contributions to the NLC for distribution to good results in at an increased fee than offered for of their First licence.
New licence operators are offered 6 months to set up infrastructure, which include ticket machines countrywide, to acquire more than with the prior operator prior to the incumbent’s licence finishes. This hottest postponement means that there will not be adequate time for the clean changeover and It is actually not likely that Tau will increase Ithuba’s licence all over again.
The whole process of appointing a new licence operator has also been plagued by allegations of conflict of interest as well as other problems.
GroundUp has discovered which the NLC has contingency strategies in place to carry on funding excellent leads to for nearly a 12 months When the lottery and the sale of lottery tickets are suspended.
The contingency also addresses funding in the function of litigation by getting rid of bidders whenever a new operator is eventually announced, which could also derail the smooth managing of your lottery.
In case ticket revenue are stopped, the NLC will use its reserves of R3.9-billion to continue funding qualifying organisations, a source with knowledge of the contingency strategy informed GroundUp.
In his weekend statement asserting the postponement, Tau reported: “Regretably, I'm not able to create a final decision at this time. Any this sort of choice presently would in all very good conscience imply which i haven't applied my intellect with because of thing to consider of each of the relevant aspects.”
“I've identified matters that call for further more evaluation. It would be inappropriate to disclose these troubles now as well as their disclosure could pretty well prejudice the proper adjudication from the awarding in the licence.”
Tau mentioned he was awaiting tips on The simplest way to make sure the continuation with the lottery from the interim plus the “growth of a programme to finalise this method”.
This, he mentioned, must be finished soon after session Along with the National Treasury.”
Tau also hinted with the political make-up in the consortiums bidding for that licence as An additional attainable reason behind the postponement.
He mentioned: “I have to also make sure the owners and managers from the profitable applicants are, as being the Act states, ‘healthy and right people’. Moreover, I have to make certain that no political get together or political Place of work-bearer has any immediate money curiosity in the applicant or simply a shareholder on the applicant.”
Enterprise Working day reported Earlier that almost all of the businesses shortlisted for the tender are politically exposed.
The Gold Rush consortium is led by superior-profile businessperson Sandile Zungu, who challenged for your ANC KwaZulu-Natal chair placement in 2022 right before dropping out following he did not garner ample guidance, the paper claimed.
Another politically related bidder is HCI, which is vast majority-owned from the South African Clothing and Textile Personnel’ Union, an affiliate of Cosatu, which happens to be in alliance Along with the ANC. CEO Johnny Copelyn donated to President Cyril Ramaphosa’s CR17 campaign for the ANC presidency.
A further shortlisted bidder, As outlined by Enterprise Working day, is Thebe Investment decision Company, which was founded by ANC leaders in 1992. Thebe is 50 percent-owned by Batho Batho Trust. The have faith in has donated R60-million into the ANC given that 2021, In keeping with declarations made for the electoral commission.
Ithuba, the holder in the licence, can be from the jogging, 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, throughหุ้น ชอง 9 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 in the NLC’s offer chain procedures, as and when expert services are necessary”.