Parks Tau, the trade and field minister, has postponed naming a profitable bidder to run South Africa’s lottery when the tenure of existing operator, Ithuba, ends in Could subsequent year.
Ithuba’s licence was thanks to acquire expired in May well 2023 but was extended for two a long time by Tau’s predecessor Ebrahim Patel after a request from the then recently-appointed board in the Countrywide Lotteries Fee (NLC).
The Board, which was dealing with the corruption that experienced confused the NLC, also advised Patel of representations by Ithuba that it had been severely influenced via the Covid pandemic. This incorporated a ban to the sale of lottery tickets at the peak with the pandemic.
In terms of the extension, Ithuba experienced to make contributions towards the NLC for distribution to great triggers at a better charge than offered for in their Original licence.
New licence operators are supplied six months to arrange infrastructure, which include ticket devices countrywide, to take about in the former operator before the incumbent’s licence ends. This hottest postponement implies that there won't be ample time for any easy changeover and It is actually unlikely that Tau will lengthen Ithuba’s licence once again.
The whole process of appointing a new licence operator has also been affected by allegations of conflict of fascination and other problems.
GroundUp has discovered that the NLC has contingency plans set up to continue funding great leads to for up to a calendar year In case the lottery along with the sale of lottery tickets are suspended.
The contingency also covers funding from the event of litigation by shedding bidders whenever a new operator is at last announced, which could also derail The sleek functioning of the lottery.
In the event ticket income are stopped, the NLC will use its reserves of R3.nine-billion to carry on funding qualifying organisations, a resource with expertise in the contingency strategy advised GroundUp.
In his weekend assertion saying the postponement, Tau claimed: “Unfortunately, I'm not ready to make a final choice at this stage. Any such conclusion right now would in all excellent conscience suggest which i have not utilized my mind with because of thing to consider of every one of the relevant variables.”
“I have recognized matters that involve more analysis. It will be inappropriate to reveal these problems now and their disclosure could pretty nicely prejudice the right adjudication of the awarding from the licence.”
Tau explained he was awaiting assistance on The ultimate way to make sure the continuation of the lottery within the interim and also the “development of the programme to finalise this process”.
This, he stated, should be finished immediately after consultation with the Nationwide Treasury.”
Tau also hinted on the political make-up of the consortiums bidding for that licence as An additional doable cause of the postponement.
He claimed: “I need to also be certain that the entrepreneurs and administrators from the productive applicants are, since the Act states, ‘healthy and good folks’. On top of that, I need to ensure that no political party or political Workplace-bearer has any direct economical fascination while in the applicant or even a shareholder from the applicant.”
Business Working day noted Beforehand that many of the businesses shortlisted for your tender are politically uncovered.
The Gold Hurry consortium is led by high-profile businessperson Sandile Zungu, who challenged for your ANC KwaZulu-Natal chair situation in 2022 before dropping out right after he did not garner more than enough assistance, the paper noted.
Yet another politically linked bidder is HCI, which can be greater part-owned because of 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 to the ANC presidency.
An additional shortlisted bidder, according to Business enterprise Day, is Thebe Investment Corporation, which was Established 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, In keeping with declarations produced for the electoral commission.
Ithuba, the holder on the licence, is likewise during the running, as is Umbulelo Consortium, led by Afrirent Holdings; and Giya Games, according to Business Working day.
Vivien Natasen consulted for Giya Online games on its bid. GroundUp noted in 2022 that Natasen, viaตรวจ หวย his company Neo Options, contributed R2-million in direction of the posh mansion in the then-NLC chair Aflred Nevhutanda — although his organization Neo Answers had a deal Together with the NLC. Natasen advised GroundUp at that time that Neo Alternatives was “appointed throughout the NLC’s supply chain procedures, as and when solutions are demanded”.