Parks Tau, the trade and business minister, has postponed naming a winning bidder to operate South Africa’s lottery when the tenure of current operator, Ithuba, finishes in May well up coming year.
Ithuba’s licence was owing to possess expired in May perhaps 2023 but was extended for two years by Tau’s predecessor Ebrahim Patel after a request by the then newly-appointed board on the Countrywide Lotteries Fee (NLC).
The Board, which was handling the corruption that experienced confused the NLC, also encouraged Patel of representations by Ithuba that it were seriously afflicted by the Covid pandemic. This integrated a ban within the sale of lottery tickets at the height from the pandemic.
Regarding the extension, Ithuba had to produce contributions towards the NLC for distribution to great leads to at the next amount than presented for in their First licence.
New licence operators are provided 6 months to create infrastructure, including ticket devices countrywide, to take in excess of in the preceding operator ahead of the incumbent’s licence ends. This most recent postponement ensures that there won't be sufficient time to get a easy transition and It truly is not likely that Tau will prolong Ithuba’s licence yet again.
The whole process of appointing a new licence operator has also been plagued by allegations of conflict of interest as well as other problems.
GroundUp has discovered which the NLC has contingency strategies in place to carry on funding very good leads to for up to a 12 months When 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 managing of your lottery.
In case ticket product sales are stopped, the NLC will use its reserves of R3.9-billion to continue funding qualifying organisations, a source with understanding of the contingency program advised GroundUp.
In his weekend statement announcing the postponement, Tau stated: “Regrettably, I am not ready for making a closing determination at this stage. Any such conclusion right now would in all great conscience mean that I haven't applied my head with due thought of all of the suitable elements.”
“I have discovered issues that need even further analysis. It will be inappropriate to disclose these concerns now and their disclosure could incredibly perfectly prejudice the proper adjudication of the awarding from the licence.”
Tau mentioned he was awaiting tips on the best way to make sure the continuation with the lottery from the interim along with the “growth of a programme to finalise this method”.
This, he mentioned, must be performed soon after session Along with the National Treasury.”
Tau also hinted with the political make-up from the consortiums bidding for that licence as An additional doable reason for the postponement.
He mentioned: “I have to also make sure the owners and managers in the profitable applicants are, as being the Act states, ‘in good shape and good folks’. On top of that, I have to be sure that no political social gathering or political Office environment-bearer has any direct financial desire while in the applicant or perhaps a shareholder of your applicant.”
Small business Day described previously that the majority of of the companies shortlisted to the tender are politically uncovered.
The Gold Hurry consortium is led by large-profile businessperson Sandile Zungu, who challenged for that ANC KwaZulu-Natal chair position in 2022 just before dropping out immediately after he didn't garner enough help, the paper documented.
One more politically linked bidder is HCI, and that is the vast majority-owned via the South African Outfits and Textile Staff’ Union, an affiliate of Cosatu, that's in alliance Together with the ANC. CEO Johnny Copelyn donated to President Cyril Ramaphosa’s CR17 campaign with the ANC presidency.
One more shortlisted bidder, In accordance with Company Working day, is Thebe Investment decision Company, which was founded by ANC leaders in 1992. Thebe is 50 percent-owned by Batho Batho Trust. The have faith in has donated R60-million to the ANC considering that 2021, according to declarations produced on the electoral commission.
Ithuba, the holder on the licence, is likewise in the running, as is Umbulelo Consortium, led by Afrirent Holdings; and Giya Games, according to Company Working day.
Vivien Natasen consulted for Giya Online games on its bid. GroundUp documented in 2022 that Natasen, by means ofตรวจ ล้อ ต เต อ รี่ his company Neo Answers, contributed R2-million in direction of the luxurious mansion of your then-NLC chair Aflred Nevhutanda — though his business Neo Options had a deal While using the NLC. Natasen explained to GroundUp At the moment that Neo Remedies was “appointed throughout the NLC’s provide chain procedures, as and when companies are needed”.