ANNOUNCEMENT OF RECENT LOTTERY LICENCE OPERATOR POSTPONED - AGAIN

Announcement of recent lottery licence operator postponed - again

Announcement of recent lottery licence operator postponed - again

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Parks Tau, the trade and business minister, has postponed naming a profitable bidder to operate South Africa’s lottery when the tenure of latest operator, Ithuba, finishes in Could future year.

Ithuba’s licence was because of to own expired in May well 2023 but was prolonged for two yrs by Tau’s predecessor Ebrahim Patel following a ask for via the then freshly-appointed board with the Nationwide Lotteries Fee (NLC).

The Board, which was dealing with the corruption that experienced overcome the NLC, also suggested Patel of representations by Ithuba that it had been seriously influenced with the Covid pandemic. This provided a ban around the sale of lottery tickets at the peak of the pandemic.

Concerning the extension, Ithuba had to generate contributions to the NLC for distribution to very good leads to at the next price than furnished for in their Preliminary licence.

New licence operators are supplied 6 months to arrange infrastructure, including ticket equipment countrywide, to choose around with the past operator prior to the incumbent’s licence finishes. This most up-to-date postponement implies that there will not be enough time to get a sleek transition and It is actually unlikely that Tau will extend Ithuba’s licence yet again.

The process of appointing a different licence operator has also been suffering from allegations of conflict of fascination along with other challenges.

GroundUp has discovered the NLC has contingency strategies set up to carry on funding superior causes for as much as a yr In the event the lottery plus the sale of lottery tickets are suspended.

The contingency also addresses funding while in the function of litigation by dropping bidders whenever a new operator is lastly declared, which could also derail The sleek operating of your lottery.

Just in case ticket revenue are stopped, the NLC will use its reserves of R3.nine-billion to continue funding qualifying organisations, a supply with knowledge of the contingency prepare told GroundUp.

In his weekend statement asserting the postponement, Tau stated: “Regretably, I am not able to make a closing choice at this stage. Any these types of choice at the moment would in all fantastic conscience necessarily mean which i haven't utilized my head with owing thought of the many applicable things.”

“I've recognized matters that need further analysis. It could be inappropriate to disclose these issues now as well as their disclosure could really nicely prejudice the appropriate adjudication on the awarding from the licence.”

Tau claimed he was awaiting suggestions on The obvious way to ensure the continuation on the lottery during the interim as well as the “enhancement of a programme to finalise this process”.

This, he stated, have to be performed after consultation Together with the Nationwide Treasury.”

Tau also hinted for the political makeup on the consortiums bidding for that licence as A further probable reason behind the postponement.

He reported: “I have to also make certain that the proprietors and administrators on the effective applicants are, as the Act states, ‘healthy and appropriate people’. Additionally, I need to make sure that no political occasion or political Workplace-bearer has any direct fiscal fascination in the applicant or possibly a shareholder with the applicant.”

Business Working day noted Earlier that the majority of the companies shortlisted to the tender are politically exposed.

The Gold Rush consortium is led by large-profile businessperson Sandile Zungu, who challenged for that ANC KwaZulu-Natal chair situation in 2022 in advance of dropping out just after he did not garner ample assist, the paper reported.

A different politically related bidder is HCI, that's bulk-owned with the South African Clothes and Textile Staff’ Union, an affiliate of Cosatu, that is in alliance with the ANC. CEO Johnny Copelyn donated to President Cyril Ramaphosa’s CR17 campaign to the ANC presidency.

A further shortlisted bidder, Based on Business Working day, is Thebe Expense Corporation, which was Launched by ANC leaders in 1992. Thebe is 50 percent-owned by Batho Batho Belief. The belief has donated R60-million to the ANC since 2021, according to declarations made to the electoral Fee.

Ithuba, the holder on the licence, can also be during the jogging, as is Umbulelo Consortium, led by Afrirent Holdings; and Giya Video games, according to Small business Working day.

Vivien Natasen consulted for Giya Video games on its bid. GroundUp described in 2022 that Natasen, by means ofหวย his firm Neo Options, contributed R2-million to the luxury mansion with the then-NLC chair Aflred Nevhutanda — whilst his firm Neo Solutions had a agreement Along with the NLC. Natasen told GroundUp at that time that Neo Options was “appointed throughout the NLC’s offer chain processes, as and when companies are expected”.

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