Parks Tau, the trade and industry minister, has postponed naming a profitable bidder to run South Africa’s lottery if the tenure of current operator, Ithuba, ends in Could upcoming calendar year.
Ithuba’s licence was thanks to obtain expired in May 2023 but was prolonged for 2 decades by Tau’s predecessor Ebrahim Patel following a request from the then freshly-appointed board of your Nationwide Lotteries Commission (NLC).
The Board, which was dealing with the corruption that experienced overwhelmed the NLC, also encouraged Patel of representations by Ithuba that it had been seriously affected via the Covid pandemic. This provided a ban around the sale of lottery tickets at the peak from the pandemic.
Concerning the extension, Ithuba had to generate contributions to the NLC for distribution to excellent will cause at a higher charge than furnished for of their Original licence.
New licence operators are offered six months to set up infrastructure, such as ticket machines countrywide, to take over from the previous operator ahead of the incumbent’s licence ends. This most recent postponement means that there won't be adequate time for a sleek transition and It is unlikely that Tau will increase Ithuba’s licence once again.
The process of appointing a different licence operator has also been suffering from allegations of conflict of fascination along with other difficulties.
GroundUp has discovered that the NLC has contingency strategies set up to carry on funding good triggers for approximately a 12 months If your lottery and the sale of lottery tickets are suspended.
The contingency also covers funding in the party of litigation by getting rid of bidders every time a new operator is eventually introduced, which could also derail the smooth jogging on the lottery.
In the event ticket sales are stopped, the NLC will use its reserves of R3.9-billion to carry on funding qualifying organisations, a supply with expertise in the contingency prepare told GroundUp.
In his weekend statement saying the postponement, Tau stated: “However, I'm not in a position to produce a remaining choice at this stage. Any these kinds of conclusion presently would in all good conscience imply that I haven't used my intellect with thanks thing to consider of the many applicable things.”
“I've recognized issues that have to have even further evaluation. It will be inappropriate to reveal these problems now as well as their disclosure could quite nicely prejudice the appropriate adjudication in the awarding of the licence.”
Tau explained he was awaiting guidance on The simplest way to ensure the continuation with the lottery in the interim along with the “enhancement of the programme to finalise this method”.
This, he explained, must be accomplished just after consultation Together with the Countrywide Treasury.”
Tau also hinted within the political make-up of your consortiums bidding with the licence as A further probable cause for the postponement.
He explained: “I have to also be certain that the house owners and professionals of the successful applicants are, as being the Act states, ‘fit and proper persons’. On top of that, I have to be certain that no political get together or political Workplace-bearer has any direct economic interest from the applicant or even a shareholder on the applicant.”
Business Day described previously that the majority of of the businesses shortlisted with the tender are politically uncovered.
The Gold Hurry consortium is led by superior-profile businessperson Sandile Zungu, who challenged for the ANC KwaZulu-Natal chair place in 2022 just before dropping out soon after he failed to garner sufficient support, the paper claimed.
A further politically linked bidder is HCI, which can be majority-owned because of the South African Apparel and Textile Employees’ Union, an affiliate of Cosatu, that is in alliance with the ANC. CEO Johnny Copelyn donated to President Cyril Ramaphosa’s CR17 marketing campaign to the ANC presidency.
An additional shortlisted bidder, As outlined by Business Working day, is Thebe Expense Corporation, which was founded by ANC leaders in 1992. Thebe is 50 %-owned by Batho Batho Belief. The trust has donated R60-million to the ANC given that 2021, In accordance with declarations produced into the electoral Fee.
Ithuba, the holder from the licence, can also be during the jogging, as is Umbulelo Consortium, led by Afrirent Holdings; and Giya Video games, In accordance with Enterprise Working day.
Vivien Natasen consulted for Giya Games on its bid. GroundUp described in 2022 that Natasen, throughlottovip his corporation Neo Methods, contributed R2-million to the posh mansion of your then-NLC chair Aflred Nevhutanda — although his enterprise Neo Answers experienced a contract While using the NLC. Natasen informed GroundUp at that time that Neo Remedies was “appointed from the NLC’s source chain procedures, as and when services are required”.
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