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 business minister, has postponed naming a successful bidder to operate South Africa’s lottery once the tenure of latest operator, Ithuba, finishes in May perhaps subsequent year.

Ithuba’s licence was due to possess expired in Could 2023 but was extended for 2 decades by Tau’s predecessor Ebrahim Patel following a request by the then freshly-appointed board on the National Lotteries Fee (NLC).

The Board, which was working with the corruption that had confused the NLC, also advised Patel of representations by Ithuba that it were seriously impacted via the Covid pandemic. This provided a ban on the sale of lottery tickets at the height on the pandemic.

When it comes to the extension, Ithuba had to help make contributions towards the NLC for distribution to very good will cause at the next price than offered for inside their Preliminary licence.

New licence operators are presented six months to create infrastructure, like ticket machines countrywide, to consider more than from the former operator prior to the incumbent’s licence ends. This hottest postponement signifies that there will not be enough time for any sleek transition and It is actually unlikely that Tau will prolong Ithuba’s licence once more.

The whole process of appointing a brand new licence operator has also been stricken by allegations of conflict of interest and various problems.

GroundUp has uncovered which the NLC has contingency designs set up to carry on funding good leads to for around a yr In case the lottery as well as sale of lottery tickets are suspended.

The contingency also handles funding while in the function of litigation by dropping bidders when a new operator is finally introduced, which could also derail the smooth functioning on the lottery.

In case ticket gross sales are stopped, the NLC will use its reserves of R3.9-billion to carry on funding qualifying organisations, a resource with understanding of the contingency plan advised GroundUp.

In his weekend assertion announcing the postponement, Tau mentioned: “Regretably, I'm not in a position to generate a closing decision at this stage. Any this sort of final decision presently would in all superior conscience mean which i haven't utilized my brain with because of consideration of all of the related factors.”

“I've discovered matters that require even more evaluation. It could be inappropriate to reveal these difficulties now as well as their disclosure could pretty nicely prejudice the proper adjudication of your awarding with the licence.”

Tau said he was awaiting suggestions on The ultimate way to ensure the continuation of your lottery from the interim along with the “improvement of the programme to finalise this method”.

This, he mentioned, need to be carried out right after consultation with the National Treasury.”

Tau also hinted for the political make-up with the consortiums bidding with the licence as Yet another attainable basis for the postponement.

He mentioned: “I must also make certain that the homeowners and professionals in the effective applicants are, given that the Act states, ‘in shape and correct people’. Additionally, I have to ensure that no political occasion or political Place of work-bearer has any immediate economical interest while in the applicant or simply a shareholder from the applicant.”

Organization Working day described Beforehand that most of the companies shortlisted for that tender are politically uncovered.

The Gold Hurry consortium is led by large-profile businessperson Sandile Zungu, who challenged for that ANC KwaZulu-Natal chair posture in 2022 prior to dropping out soon after he did not garner ample assist, the paper documented.

One more politically linked bidder is HCI, that's greater part-owned from the South African Clothing and Textile Staff’ Union, an affiliate of Cosatu, which can be in alliance with the ANC. CEO Johnny Copelyn donated to President Cyril Ramaphosa’s CR17 campaign for that ANC presidency.

Yet another shortlisted bidder, according to Organization Working day, is Thebe Investment decision Company, which was Launched by ANC leaders in 1992. Thebe is 50 percent-owned by Batho Batho Belief. The belief has donated R60-million towards the ANC considering that 2021, As outlined by declarations made into the electoral Fee.

Ithuba, the holder with the licence, is additionally within the managing, as is Umbulelo Consortium, led by Afrirent Holdings; and Giya Video games, In accordance with Business Day.

Vivien Natasen consulted for Giya Game titles on its bid. GroundUp reported in 2022 that Natasen, as a result ofltpbet his business Neo Solutions, contributed R2-million to the luxury mansion of your then-NLC chair Aflred Nevhutanda — although his enterprise Neo Remedies experienced a deal Together with the NLC. Natasen explained to GroundUp at that time that Neo Answers was “appointed from the NLC’s source chain procedures, as and when solutions are expected”.

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