Parks Tau, the trade and sector minister, has postponed naming a successful bidder to run South Africa’s lottery once the tenure of existing operator, Ithuba, finishes in May well following year.
Ithuba’s licence was thanks to get expired in May 2023 but was extended for 2 a long time by Tau’s predecessor Ebrahim Patel following a ask for with the then freshly-appointed board in the Nationwide Lotteries Fee (NLC).
The Board, which was coping with the corruption that had overcome the NLC, also recommended Patel of representations by Ithuba that it were seriously influenced by the Covid pandemic. This integrated a ban around the sale of lottery tickets at the height from the pandemic.
Regarding the extension, Ithuba had to produce contributions for the NLC for distribution to great leads to at a higher level than furnished for within their initial licence.
New licence operators are supplied six months to setup infrastructure, together with ticket equipment countrywide, to consider over from the previous operator ahead of the incumbent’s licence ends. This newest postponement ensures that there won't be enough time for your easy changeover and It is actually unlikely that Tau will increase Ithuba’s licence once again.
The whole process of appointing a new licence operator has also been plagued by allegations of conflict of curiosity as well as other difficulties.
GroundUp has learned that the NLC has contingency strategies set up to carry on funding excellent will cause for as much as a year When the lottery along with the sale of lottery tickets are suspended.
The contingency also handles funding in the occasion of litigation by losing bidders whenever a new operator is ultimately announced, which could also derail The graceful jogging in the lottery.
In the event that ticket income are stopped, the NLC will use its reserves of R3.nine-billion to continue funding qualifying organisations, a supply with understanding of the contingency approach told GroundUp.
In his weekend statement announcing the postponement, Tau claimed: “Sadly, I am not in a position to produce a closing conclusion at this time. Any these final decision right now would in all very good conscience suggest that I haven't utilized my mind with owing thought of all of the relevant variables.”
“I've recognized issues that require even more analysis. It would be inappropriate to disclose these troubles now as well as their disclosure could pretty nicely prejudice the right adjudication of your awarding of the licence.”
Tau stated he was awaiting suggestions on the best way to make sure the continuation of your lottery during the interim and the “enhancement of the programme to finalise this process”.
This, he said, needs to be performed soon after session Along with the National Treasury.”
Tau also hinted within the political makeup on the consortiums bidding for the licence as One more feasible cause for the postponement.
He said: “I must also be certain that the entrepreneurs and administrators of the profitable applicants are, as being the Act states, ‘healthy and good folks’. On top of that, I need to be sure that no political bash or political Business-bearer has any immediate economic interest during the applicant or simply a shareholder on the applicant.”
Enterprise Working day noted Beforehand that a lot of of the companies shortlisted to the tender are politically uncovered.
The Gold Hurry consortium is led by large-profile businessperson Sandile Zungu, who challenged for that ANC KwaZulu-Natal chair position in 2022 just before dropping out just after he didn't garner sufficient help, the paper documented.
A different politically related bidder is HCI, which happens to be majority-owned by the South African Clothing and Textile Personnel’ Union, an affiliate of Cosatu, which happens to be in alliance While using the ANC. CEO Johnny Copelyn donated to President Cyril Ramaphosa’s CR17 campaign for your ANC presidency.
Another shortlisted bidder, In keeping with Small business Day, is Thebe Investment Corporation, which was Launched by ANC leaders in 1992. Thebe is half-owned by Batho Batho Rely on. The have faith in has donated R60-million to the ANC considering that 2021, according to declarations created on the electoral Fee.
Ithuba, the holder of your licence, is also within the working, as is Umbulelo Consortium, led by Afrirent Holdings; and Giya Video games, In accordance with Organization Day.
Vivien Natasen consulted for Giya Games on its bid. GroundUp claimed in 2022 that Natasen, byruay his company Neo Options, contributed R2-million in the direction of the luxury mansion from the then-NLC chair Aflred Nevhutanda — although his organization Neo Answers experienced a agreement Together with the NLC. Natasen advised GroundUp At the moment that Neo Alternatives was “appointed throughout the NLC’s supply chain procedures, as and when solutions are demanded”.