ANNOUNCEMENT OF LATEST LOTTERY LICENCE OPERATOR POSTPONED - AGAIN

Announcement of latest lottery licence operator postponed - again

Announcement of latest lottery licence operator postponed - again

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Parks Tau, the trade and industry minister, has postponed naming a successful bidder to operate South Africa’s lottery when the tenure of recent operator, Ithuba, finishes in May perhaps next year.

Ithuba’s licence was due to possess expired in Might 2023 but was extended for 2 years by Tau’s predecessor Ebrahim Patel following a request through the then newly-appointed board from the Countrywide 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 were seriously affected from the Covid pandemic. This integrated a ban over the sale of lottery tickets at the height of your pandemic.

With regard to the extension, Ithuba had for making contributions towards the NLC for distribution to superior results in at a better fee than provided for within their First licence.

New licence operators are given six months to create infrastructure, together with ticket equipment countrywide, to choose in excess of from your past operator before the incumbent’s licence ends. This hottest postponement means that there won't be ample time for any easy transition and It truly is unlikely that Tau will lengthen Ithuba’s licence once more.

The process of appointing a whole new licence operator has also been affected by allegations of conflict of desire and various difficulties.

GroundUp has discovered the NLC has contingency plans in place to continue funding fantastic leads to for as many as a 12 months if the lottery as well as sale of lottery tickets are suspended.

The contingency also handles funding in the event of litigation by losing bidders each time a new operator is eventually introduced, which could also derail The sleek functioning of the lottery.

In case ticket revenue are stopped, the NLC will use its reserves of R3.nine-billion to continue funding qualifying organisations, a source with expertise in the contingency approach explained to GroundUp.

In his weekend assertion asserting the postponement, Tau claimed: “Regretably, I am not able to produce a remaining determination at this time. Any this kind of decision right now would in all great conscience necessarily mean that I haven't applied my head with thanks consideration of many of the pertinent components.”

“I've determined matters that call for even further analysis. It could be inappropriate to disclose these troubles now and their disclosure could very perfectly prejudice the correct adjudication from the awarding of the licence.”

Tau explained he was awaiting guidance on The easiest way to ensure the continuation with the lottery inside the interim as well as the “advancement of the programme to finalise this process”.

This, he said, must be completed just after consultation While using the National Treasury.”

Tau also hinted on the political makeup on the consortiums bidding to the licence as A different feasible basis for the postponement.

He mentioned: “I must also make certain that the homeowners and supervisors in the effective applicants are, given that the Act states, ‘in shape and appropriate persons’. Also, I must be sure that no political get together or political Business-bearer has any direct fiscal desire inside the applicant or simply a shareholder of the applicant.”

Enterprise Day described Earlier that the majority of the businesses shortlisted with the tender are politically uncovered.

The Gold Rush consortium is led by large-profile businessperson Sandile Zungu, who challenged for your ANC KwaZulu-Natal chair place in 2022 prior to dropping out right after he failed to garner enough guidance, the paper documented.

An additional politically related bidder is HCI, which happens to be the greater part-owned from the South African Garments and Textile Employees’ Union, an affiliate of Cosatu, which is in alliance Along with the ANC. CEO Johnny Copelyn donated to President Cyril Ramaphosa’s CR17 marketing campaign to the ANC presidency.

A further shortlisted bidder, In line with Small business Working day, is Thebe Expense Corporation, which was founded by ANC leaders in 1992. Thebe is half-owned by Batho Batho Have confidence in. The have confidence in has donated R60-million for the ANC considering that 2021, In line with declarations produced to the electoral Fee.

Ithuba, the holder in the licence, can also be during the working, as is Umbulelo Consortium, led by Afrirent Holdings; and Giya Game titles, In accordance with Business Day.

Vivien Natasen consulted for Giya Online games on its bid. GroundUp claimed in 2022 that Natasen, throughตรวจ รางวัล his enterprise Neo Alternatives, contributed R2-million in direction of the luxurious mansion from the then-NLC chair Aflred Nevhutanda — when his business Neo Alternatives experienced a deal With all the NLC. Natasen instructed GroundUp At the moment that Neo Methods was “appointed through the NLC’s supply chain processes, as and when providers are essential”.

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