Announcement of recent lottery licence operator postponed - again

Parks Tau, the trade and sector minister, has postponed naming a successful bidder to operate South Africa’s lottery if the tenure of present operator, Ithuba, finishes in May possibly subsequent 12 months.

Ithuba’s licence was thanks to have expired in May possibly 2023 but was extended for two a long time by Tau’s predecessor Ebrahim Patel after a ask for from the then newly-appointed board of the Countrywide Lotteries Commission (NLC).

The Board, which was handling the corruption that had overcome the NLC, also suggested Patel of representations by Ithuba that it were severely influenced through the Covid pandemic. This included a ban to the sale of lottery tickets at the peak in the pandemic.

In terms of the extension, Ithuba had for making contributions to the NLC for distribution to very good results in at a higher charge than furnished for of their Original licence.

New licence operators are specified 6 months to arrange infrastructure, including ticket equipment countrywide, to acquire around in the earlier operator before the incumbent’s licence finishes. This most current postponement implies that there will not be ample time for your easy changeover and It is actually not likely that Tau will extend Ithuba’s licence all over again.

The entire process of appointing a whole new licence operator has also been plagued by allegations of conflict of desire along with other concerns.

GroundUp has learned the NLC has contingency designs in place to continue funding superior leads to for approximately a 12 months if the lottery as well as the sale of lottery tickets are suspended.

The contingency also addresses funding inside the function of litigation by dropping bidders each time a new operator is eventually introduced, which could also derail the smooth running of your lottery.

Just in case ticket income are stopped, the NLC will use its reserves of R3.9-billion to carry on funding qualifying organisations, a source with expertise in the contingency program told GroundUp.

In his weekend statement asserting the postponement, Tau mentioned: “Sad to say, I am not ready to generate a last decision at this stage. Any these decision at the moment would in all very good conscience necessarily mean that I haven't used my thoughts with because of thought of every one of the suitable components.”

“I have recognized matters that need further evaluation. It will be inappropriate to reveal these challenges now as well as their disclosure could pretty perfectly prejudice the appropriate adjudication of your awarding of your licence.”

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

This, he mentioned, needs to be accomplished after consultation with the National Treasury.”

Tau also hinted within the political make-up from the consortiums bidding for your licence as One more probable reason behind the postponement.

He said: “I need to also make sure the house owners and professionals from the effective applicants are, given that the Act states, ‘healthy and suitable persons’. Moreover, I need to be certain that no political bash or political Office environment-bearer has any immediate financial curiosity from the applicant or a shareholder in the applicant.”

Organization Working day described Earlier that a lot of of the businesses shortlisted for that tender are politically exposed.

The Gold Rush consortium is led by higher-profile businessperson Sandile Zungu, who challenged for the ANC KwaZulu-Natal chair position in 2022 before dropping out after he did not garner sufficient aid, the paper documented.

Another politically linked bidder is HCI, which is greater part-owned by the South African Apparel and Textile Staff’ Union, an affiliate of Cosatu, which is in alliance Together with the ANC. CEO Johnny Copelyn donated to President Cyril Ramaphosa’s CR17 marketing campaign for that ANC presidency.

A further shortlisted bidder, Based on Enterprise Day, is Thebe Investment decision Corporation, which was Established by ANC leaders in 1992. Thebe is 50 %-owned by Batho Batho Rely on. The have faith in has donated R60-million for the ANC given that 2021, Based on declarations made to your electoral commission.

Ithuba, the holder with the licence, is additionally during the working, as is Umbulelo Consortium, led by Afrirent Holdings; and Giya Game titles, In accordance with Business enterprise Working day.

Vivien Natasen consulted for Giya Games on its bid. GroundUp noted in 2022 that Natasen, bycat888 his organization Neo Methods, contributed R2-million in direction of the luxurious mansion from the then-NLC chair Aflred Nevhutanda — even though his company Neo Answers had a agreement While using the NLC. Natasen told GroundUp at that time that Neo Options was “appointed throughout the NLC’s provide chain processes, as and when providers are essential”.

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