Parks Tau, the trade and business minister, has postponed naming a winning bidder to run South Africa’s lottery once the tenure of existing operator, Ithuba, finishes in May next calendar year.
Ithuba’s licence was thanks to own expired in Might 2023 but was prolonged for two yrs by Tau’s predecessor Ebrahim Patel after a request via the then newly-appointed board with the Countrywide Lotteries Commission (NLC).
The Board, which was working with the corruption that experienced confused the NLC, also advised Patel of representations by Ithuba that it had been severely affected through the Covid pandemic. This involved a ban over the sale of lottery tickets at the peak of your pandemic.
When it comes to the extension, Ithuba had to make contributions to the NLC for distribution to good causes at the next amount than presented for in their Original licence.
New licence operators are presented 6 months to put in place infrastructure, which includes ticket equipment countrywide, to get over through the prior operator prior to the incumbent’s licence finishes. This latest postponement implies that there won't be enough time for a smooth transition and It truly is not likely that Tau will prolong Ithuba’s licence all over again.
The whole process of appointing a brand new licence operator has also been suffering from allegations of conflict of curiosity and also other troubles.
GroundUp has uncovered that the NLC has contingency plans set up to continue funding good results in for as many as a yr if the lottery and the sale of lottery tickets are suspended.
The contingency also addresses funding in the function of litigation by getting rid of bidders whenever a new operator is at last announced, which could also derail the smooth jogging of the lottery.
In the event ticket income are stopped, the NLC will use its reserves of R3.nine-billion to continue funding qualifying organisations, a supply with familiarity with the contingency system explained to GroundUp.
In his weekend assertion asserting the postponement, Tau claimed: “Regretably, I'm not able to produce a last choice at this time. Any these types of final decision at the moment would in all good conscience signify that I haven't applied my head with due thought of all of the suitable aspects.”
“I've discovered matters that call for further more evaluation. It might be inappropriate to disclose these difficulties now as well as their disclosure could extremely effectively prejudice the right adjudication with the awarding of your licence.”
Tau said he was awaiting guidance on the best way to make sure the continuation with the lottery from the interim plus the “progress of a programme to finalise this method”.
This, he claimed, has to be carried out after consultation Using the Nationwide Treasury.”
Tau also hinted at the political makeup of your consortiums bidding for your licence as A further achievable cause for the postponement.
He stated: “I must also be sure that the entrepreneurs and managers from the profitable applicants are, since the Act states, ‘healthy and good people’. On top of that, I have to be certain that no political social gathering or political Business office-bearer has any direct financial desire while in the applicant or even a shareholder of the applicant.”
Business enterprise Day claimed Formerly that the majority of of the companies shortlisted for that tender are politically uncovered.
The Gold Rush consortium is led by substantial-profile businessperson Sandile Zungu, who challenged for the ANC KwaZulu-Natal chair place in 2022 in advance of dropping out following he failed to garner ample guidance, the paper claimed.
An additional politically connected bidder is HCI, that is bulk-owned with the South African Apparel and Textile Employees’ Union, an affiliate of Cosatu, that is in alliance Using the ANC. CEO Johnny Copelyn donated to President Cyril Ramaphosa’s CR17 marketing campaign for that ANC presidency.
One more shortlisted bidder, In accordance with Business Working day, is Thebe Expense Company, which was founded by ANC leaders in 1992. Thebe is fifty percent-owned by Batho Batho Belief. The have faith in has donated R60-million into the ANC given that 2021, In keeping with declarations produced for the electoral commission.
Ithuba, the holder in the licence, is likewise from the functioning, as is Umbulelo Consortium, led by Afrirent Holdings; and Giya Game titles, In keeping with Business enterprise Working day.
Vivien Natasen consulted for Giya Video games on its bid. GroundUp noted in 2022 that Natasen, throughตัว หวย his corporation Neo Methods, contributed R2-million towards the luxury mansion of the then-NLC chair Aflred Nevhutanda — while his company Neo Solutions experienced a agreement With all the NLC. Natasen informed GroundUp At the moment that Neo Remedies was “appointed with the NLC’s source chain processes, as and when services are expected”.