Parks Tau, the trade and market minister, has postponed naming a successful bidder to run South Africa’s lottery once the tenure of current operator, Ithuba, ends in May perhaps subsequent 12 months.
Ithuba’s licence was because of to get expired in Could 2023 but was extended for 2 decades by Tau’s predecessor Ebrahim Patel following a request because of the then recently-appointed board on the Nationwide Lotteries Commission (NLC).
The Board, which was working with the corruption that had confused the NLC, also suggested Patel of representations by Ithuba that it were severely afflicted because of the Covid pandemic. This provided a ban around the sale of lottery tickets at the peak of your pandemic.
In terms of the extension, Ithuba had for making contributions on the NLC for distribution to fantastic results in at the next level than presented for inside their initial licence.
New licence operators are provided six months to set up infrastructure, together with ticket devices countrywide, to get more than from your prior operator before the incumbent’s licence finishes. This most current postponement signifies that there will not be enough time for the smooth transition and It's not likely that Tau will increase Ithuba’s licence once again.
The entire process of appointing a brand new licence operator has also been tormented by allegations of conflict of desire along with other difficulties.
GroundUp has learned the NLC has contingency programs in position to continue funding excellent brings about for nearly a calendar year if the lottery and also the sale of lottery tickets are suspended.
The contingency also handles funding in the party of litigation by shedding bidders each time a new operator is lastly declared, which could also derail The sleek running with the lottery.
In case ticket profits 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 approach advised GroundUp.
In his weekend assertion announcing the postponement, Tau claimed: “Unfortunately, I am not ready to create a closing choice at this stage. Any these types of conclusion at this time would in all excellent conscience signify that I have not applied my brain with because of thought of every one of the suitable components.”
“I have identified issues that call for even further evaluation. It would be inappropriate to reveal these concerns now as well as their disclosure could extremely perfectly prejudice the correct adjudication of your awarding in the licence.”
Tau reported he was awaiting guidance on The simplest way to make sure the continuation of the lottery while in the interim and also the “growth of the programme to finalise this process”.
This, he explained, have to be performed just after session While using the Nationwide Treasury.”
Tau also hinted at the political make-up on the consortiums bidding for your licence as A further attainable basis for the postponement.
He mentioned: “I need to also be certain that the proprietors and administrators with the profitable applicants are, as the Act states, ‘in shape and good individuals’. Also, I must be sure that no political bash or political Place of work-bearer has any direct economic curiosity from the applicant or a shareholder of the applicant.”
Enterprise Day reported previously that almost all of the companies shortlisted with the tender are politically exposed.
The Gold Hurry consortium is led by significant-profile businessperson Sandile Zungu, who challenged to the ANC KwaZulu-Natal chair place in 2022 right before dropping out just after he failed to garner plenty of help, the paper reported.
One more politically related bidder is HCI, and that is vast majority-owned because of the South African Outfits and Textile Workers’ Union, an affiliate of Cosatu, that's in alliance While using the ANC. CEO Johnny Copelyn donated to President Cyril Ramaphosa’s CR17 marketing campaign with the ANC presidency.
An additional shortlisted bidder, In line with Organization Working day, is Thebe Financial investment Company, which was Started by ANC leaders in 1992. Thebe is fifty percent-owned by Batho Batho Have faith in. The have faith in has donated R60-million to your ANC considering the fact that 2021, In line with declarations manufactured towards the electoral Fee.
Ithuba, the holder from the licence, is usually while in the functioning, as is Umbulelo Consortium, led by Afrirent Holdings; and Giya Games, In accordance with Business Day.
Vivien Natasen consulted for Giya Games on its bid. GroundUp reported in 2022 that Natasen, throughhihuay his firm Neo Alternatives, contributed R2-million towards the luxury mansion of the then-NLC chair Aflred Nevhutanda — whilst his business Neo Options experienced a deal While using the NLC. Natasen explained to GroundUp at that time that Neo Options was “appointed through the NLC’s source chain processes, as and when solutions are required”.