ANNOUNCEMENT OF RECENT LOTTERY LICENCE OPERATOR POSTPONED - YET AGAIN

Announcement of recent lottery licence operator postponed - yet again

Announcement of recent lottery licence operator postponed - yet again

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Parks Tau, the trade and sector minister, has postponed naming a winning bidder to operate South Africa’s lottery in the event the tenure of current operator, Ithuba, finishes in May perhaps upcoming yr.

Ithuba’s licence was thanks to get expired in May well 2023 but was prolonged for 2 several years by Tau’s predecessor Ebrahim Patel following a ask for from the then newly-appointed board in the National Lotteries Commission (NLC).

The Board, which was managing the corruption that experienced confused the NLC, also encouraged Patel of representations by Ithuba that it had been seriously influenced because of the Covid pandemic. This included a ban on the sale of lottery tickets at the peak on the pandemic.

Concerning the extension, Ithuba had to make contributions on the NLC for distribution to good results in at a greater amount than supplied for of their initial licence.

New licence operators are provided six months to build infrastructure, like ticket machines countrywide, to take over within the prior operator prior to the incumbent’s licence ends. This most up-to-date postponement means that there won't be enough time for the clean changeover and It is not likely that Tau will extend Ithuba’s licence again.

The whole process of appointing a different licence operator has also been suffering from allegations of conflict of desire as well as other issues.

GroundUp has uncovered which the NLC has contingency plans in position to continue funding fantastic causes for as many as a yr When the lottery as well as sale of lottery tickets are suspended.

The contingency also addresses funding from the event of litigation by dropping bidders every time a new operator is lastly introduced, which could also derail The sleek managing of your lottery.

In the event that ticket revenue are stopped, the NLC will use its reserves of R3.nine-billion to carry on funding qualifying organisations, a resource with familiarity with the contingency program explained to GroundUp.

In his weekend assertion asserting the postponement, Tau explained: “However, I am not able to generate a last decision at this time. Any these kinds of choice right now would in all good conscience indicate which i haven't applied my thoughts with because of thought of many of the suitable elements.”

“I have discovered issues that require further analysis. It will be inappropriate to reveal these troubles now and their disclosure could really effectively prejudice the right adjudication from the awarding in the licence.”

Tau explained he was awaiting suggestions on the best way to make sure the continuation in the lottery in the interim plus the “advancement of the programme to finalise this method”.

This, he stated, need to be done soon after session With all the Nationwide Treasury.”

Tau also hinted for the political make-up of your consortiums bidding for your licence as Yet another attainable cause for the postponement.

He claimed: “I have to also make sure the entrepreneurs and supervisors on the productive applicants are, because the Act states, ‘fit and good people’. Furthermore, I need to make sure that no political bash or political Office environment-bearer has any direct money desire within the applicant or maybe a shareholder of your applicant.”

Enterprise Day documented Earlier that the majority of the companies shortlisted for the tender are politically uncovered.

The Gold Hurry consortium is led by superior-profile businessperson Sandile Zungu, who challenged with the ANC KwaZulu-Natal chair posture in 2022 in advance of dropping out just after he didn't garner more than enough aid, the paper documented.

Another politically linked bidder is HCI, which happens to be greater part-owned by the South African Apparel and Textile Personnel’ Union, an affiliate of Cosatu, which is in alliance Together with the ANC. CEO Johnny Copelyn donated to President Cyril Ramaphosa’s CR17 marketing campaign for that ANC presidency.

A further shortlisted bidder, Based on Company Day, is Thebe Expense Company, which was Established by ANC leaders in 1992. Thebe is 50 percent-owned by Batho Batho Have faith in. The have confidence in has donated R60-million towards the ANC because 2021, according to declarations designed on the electoral commission.

Ithuba, the holder on the licence, can also be during the working, as is Umbulelo Consortium, led by Afrirent Holdings; and Giya Game titles, Based on Small business Working day.

Vivien Natasen consulted for Giya Games on its bid. GroundUp noted in 2022 that Natasen, by way ofหวย รัฐบาล his company Neo Alternatives, contributed R2-million in the direction of the luxurious mansion of the then-NLC chair Aflred Nevhutanda — when his business Neo Remedies experienced a deal with the NLC. Natasen informed GroundUp at that time that Neo Remedies was “appointed from the NLC’s offer chain procedures, as and when products and services are demanded”.

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