Parks Tau, the trade and field minister, has postponed naming a profitable bidder to operate South Africa’s lottery when the tenure of present operator, Ithuba, finishes in May well up coming calendar year.
Ithuba’s licence was owing to possess expired in May well 2023 but was extended for two years by Tau’s predecessor Ebrahim Patel after a request from the then recently-appointed board of your National Lotteries Commission (NLC).
The Board, which was working with the corruption that experienced confused the NLC, also advised 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 of the pandemic.
With regards to the extension, Ithuba had to create contributions towards the NLC for distribution to great causes at the next amount than presented for in their Original licence.
New licence operators are provided 6 months to create infrastructure, including ticket devices countrywide, to choose in excess of from the preceding operator ahead of the incumbent’s licence finishes. This newest postponement signifies that there won't be ample time for a easy transition and It really is unlikely that Tau will lengthen Ithuba’s licence once again.
The entire process of appointing a different licence operator has also been stricken by allegations of conflict of fascination and various difficulties.
GroundUp has figured out that the NLC has contingency plans set up to continue funding good will cause for approximately a year If your lottery along with the sale of lottery tickets are suspended.
The contingency also handles funding while in the event of litigation by dropping bidders any time a new operator is lastly introduced, which could also derail The sleek working from the lottery.
In the event that ticket income are stopped, the NLC will use its reserves of R3.9-billion to carry on funding qualifying organisations, a source with understanding of the contingency system told GroundUp.
In his weekend statement announcing the postponement, Tau explained: “Regretably, I'm not ready to make a ultimate conclusion at this time. Any such selection at the moment would in all very good conscience imply that I haven't used my intellect with owing consideration of every one of the pertinent factors.”
“I have determined matters that involve even more analysis. It might be inappropriate to reveal these issues now as well as their disclosure could very very well prejudice the proper adjudication of your awarding on the licence.”
Tau stated he was awaiting advice on The simplest way to ensure the continuation with the lottery within the interim plus the “improvement of a programme to finalise this method”.
This, he stated, should be carried out soon after consultation Using the Countrywide Treasury.”
Tau also hinted for the political makeup from the consortiums bidding for the licence as Yet another achievable basis for the postponement.
He stated: “I need to also be sure that the homeowners and administrators from the thriving applicants are, because the Act states, ‘fit and suitable people’. Additionally, I must ensure that no political occasion or political Business office-bearer has any immediate financial interest from the applicant or simply a shareholder of the applicant.”
Enterprise Day noted Formerly that many of the companies shortlisted for the tender are politically uncovered.
The Gold Rush consortium is led by large-profile businessperson Sandile Zungu, who challenged for the ANC KwaZulu-Natal chair situation in 2022 just before dropping out after he did not garner sufficient support, the paper noted.
A further politically related bidder is HCI, and that is bulk-owned by the South African Clothes and Textile Staff’ Union, an affiliate of Cosatu, and that is in alliance with the ANC. CEO Johnny Copelyn donated to President Cyril Ramaphosa’s CR17 marketing campaign for that ANC presidency.
A further shortlisted bidder, according to Company Working day, is Thebe Expense Company, which was Launched by ANC leaders in 1992. Thebe is 50 percent-owned by Batho Batho Have confidence in. The rely on has donated R60-million to your ANC due to the fact 2021, As outlined by declarations designed into the electoral commission.
Ithuba, the holder of your licence, can be in the managing, as is Umbulelo Consortium, led by Afrirent Holdings; and Giya Online games, Based on Enterprise Day.
Vivien Natasen consulted for Giya Games on its bid. GroundUp noted in 2022 that Natasen, by means ofตรวจ his corporation Neo Solutions, contributed R2-million in the direction of the luxury mansion from the then-NLC chair Aflred Nevhutanda — whilst his organization Neo Options experienced a deal While using the NLC. Natasen instructed GroundUp at that time that Neo Options was “appointed through the NLC’s offer chain processes, as and when products and services are essential”.