Parks Tau, the trade and field minister, has postponed naming a profitable bidder to operate South Africa’s lottery in the event the tenure of latest operator, Ithuba, ends in Might next 12 months.
Ithuba’s licence was due to acquire expired in Could 2023 but was prolonged for 2 several years by Tau’s predecessor Ebrahim Patel following a ask for because of the then freshly-appointed board in the Countrywide Lotteries Fee (NLC).
The Board, which was coping with the corruption that had overcome the NLC, also recommended Patel of representations by Ithuba that it were severely influenced because of the Covid pandemic. This included a ban on the sale of lottery tickets at the peak of your pandemic.
With regards to the extension, Ithuba had to create contributions to the NLC for distribution to good results in at an increased fee than offered for in their First licence.
New licence operators are offered 6 months to setup infrastructure, together with ticket devices countrywide, to choose above within the earlier operator ahead of the incumbent’s licence finishes. This newest postponement signifies that there won't be enough time for a smooth transition and It really is unlikely that Tau will lengthen Ithuba’s licence yet again.
The whole process of appointing a different licence operator has also been tormented by allegations of conflict of desire and other issues.
GroundUp has uncovered which the NLC has contingency ideas in position to continue funding excellent triggers for around a 12 months Should the lottery and the sale of lottery tickets are suspended.
The contingency also handles funding during the event of litigation by losing bidders when a new operator is lastly introduced, which could also derail the smooth functioning in the lottery.
In the event that ticket income are stopped, the NLC will use its reserves of R3.9-billion to continue funding qualifying organisations, a source with familiarity with the contingency program explained to GroundUp.
In his weekend assertion saying the postponement, Tau mentioned: “Sad to say, I'm not in a position to generate a ultimate final decision at this stage. Any these determination at the moment would in all great conscience imply which i have not used my brain with due thing to consider of the many appropriate factors.”
“I've identified issues that need further more evaluation. It might be inappropriate to reveal these challenges now and their disclosure could extremely properly prejudice the appropriate adjudication of the awarding from the licence.”
Tau stated he was awaiting suggestions on The simplest way to ensure the continuation from the lottery while in the interim along with the “growth of a programme to finalise this method”.
This, he reported, have to be completed soon after consultation with the Nationwide Treasury.”
Tau also hinted on the political make-up on the consortiums bidding for the licence as A different attainable reason for the postponement.
He explained: “I need to also be certain that the owners and professionals on the thriving applicants are, as the Act states, ‘match and suitable people’. On top of that, I must make certain that no political occasion or political Workplace-bearer has any direct economical fascination while in the applicant or possibly a shareholder from the applicant.”
Business Working day documented previously that the majority of the businesses shortlisted to the tender are politically uncovered.
The Gold Rush consortium is led by high-profile businessperson Sandile Zungu, who challenged to the ANC KwaZulu-Natal chair posture in 2022 just before dropping out just after he failed to garner adequate aid, the paper noted.
One more politically connected bidder is HCI, that's bulk-owned because of the South African Clothing and Textile Workers’ Union, an affiliate of Cosatu, that is in alliance Together with the ANC. CEO Johnny Copelyn donated to President Cyril Ramaphosa’s CR17 campaign for your ANC presidency.
One more shortlisted bidder, Based on Company Working day, is Thebe Financial commitment Corporation, which was Launched by ANC leaders in 1992. Thebe is half-owned by Batho Batho Trust. The belief has donated R60-million into the ANC due to the fact 2021, In line with declarations produced into the electoral commission.
Ithuba, the holder with the licence, can also be during the operating, as is Umbulelo Consortium, led by Afrirent Holdings; and Giya Video games, As outlined by Company Day.
Vivien Natasen consulted for Giya Games on its bid. GroundUp reported in 2022 that Natasen, throughหวย his company Neo Answers, contributed R2-million in direction of the posh mansion on the then-NLC chair Aflred Nevhutanda — even though his firm Neo Remedies had a deal with the NLC. Natasen explained to GroundUp at that time that Neo Options was “appointed through the NLC’s offer chain processes, as and when products and services are essential”.