ANNOUNCEMENT OF RECENT LOTTERY LICENCE OPERATOR POSTPONED - ALL OVER AGAIN

Announcement of recent lottery licence operator postponed - all over again

Announcement of recent lottery licence operator postponed - all over again

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Parks Tau, the trade and sector minister, has postponed naming a successful bidder to operate South Africa’s lottery once the tenure of latest operator, Ithuba, finishes in May up coming yr.

Ithuba’s licence was due to get expired in Could 2023 but was extended for 2 many years by Tau’s predecessor Ebrahim Patel after a request via the then freshly-appointed board of the Countrywide Lotteries Fee (NLC).

The Board, which was dealing with the corruption that experienced overcome the NLC, also advised Patel of representations by Ithuba that it were severely influenced through the Covid pandemic. This integrated a ban over the sale of lottery tickets at the height in the pandemic.

With regards to the extension, Ithuba experienced to produce contributions into the NLC for distribution to very good results in at a higher fee than provided for in their initial licence.

New licence operators are provided six months to create infrastructure, together with ticket equipment countrywide, to acquire over in the prior operator before the incumbent’s licence finishes. This most current postponement implies that there won't be adequate time to get a smooth transition and It's not likely that Tau will extend Ithuba’s licence all over again.

The entire process of appointing a fresh licence operator has also been plagued by allegations of conflict of curiosity along with other challenges.

GroundUp has uncovered which the NLC has contingency strategies set up to continue funding excellent causes for up to a yr In case the lottery plus the sale of lottery tickets are suspended.

The contingency also handles funding in the function of litigation by shedding bidders whenever a new operator is at last declared, which could also derail The graceful functioning from the lottery.

In the event ticket product sales are stopped, the NLC will use its reserves of R3.9-billion to carry on funding qualifying organisations, a supply with familiarity with the contingency approach advised GroundUp.

In his weekend statement asserting the postponement, Tau reported: “Regretably, I'm not in a position to produce a final final decision at this stage. Any these selection right now would in all good conscience necessarily mean that I have not applied my brain with thanks thought of all of the applicable factors.”

“I have identified matters that need additional evaluation. It could be inappropriate to disclose these difficulties now and their disclosure could quite properly prejudice the correct adjudication with the awarding on the licence.”

Tau stated he was awaiting guidance on The easiest way to ensure the continuation from the lottery within the interim as well as “growth of the programme to finalise this process”.

This, he explained, must be accomplished after consultation with the Countrywide Treasury.”

Tau also hinted at the political make-up from the consortiums bidding to the licence as A further possible cause of the postponement.

He explained: “I have to also be certain that the homeowners and professionals of the successful applicants are, as being the Act states, ‘healthy and suitable individuals’. Furthermore, I must make sure that no political get together or political office-bearer has any direct economical interest inside the applicant or perhaps a shareholder on the applicant.”

Business enterprise Working day claimed previously that many of the companies shortlisted for that tender are politically exposed.

The Gold Rush consortium is led by superior-profile businessperson Sandile Zungu, who challenged with the ANC KwaZulu-Natal chair situation in 2022 ahead of dropping out right after he failed to garner enough guidance, the paper documented.

An additional politically related bidder is HCI, and that is greater part-owned from the South African Garments and Textile Workers’ 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 marketing campaign for the ANC presidency.

A different shortlisted bidder, Based on Organization Day, is Thebe Investment Company, which was Established by ANC leaders in 1992. Thebe is 50 percent-owned by Batho Batho Rely on. The rely on has donated R60-million on the ANC considering that 2021, In line with declarations created to the electoral Fee.

Ithuba, the holder from the licence, is usually while in the running, as is Umbulelo Consortium, led by Afrirent Holdings; and Giya Video games, according to Organization Working day.

Vivien Natasen consulted for Giya Games on its bid. GroundUp noted in 2022 that Natasen, byหวย หุ้น ช่อง 9 วัน นี้ his firm Neo Options, contributed R2-million to the posh mansion of your then-NLC chair Aflred Nevhutanda — although his company Neo Answers experienced a deal Using the NLC. Natasen advised GroundUp at that time that Neo Remedies was “appointed in the NLC’s source chain procedures, as and when solutions are necessary”.

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