ANNOUNCEMENT OF NEW LOTTERY LICENCE OPERATOR POSTPONED - AGAIN

Announcement of new lottery licence operator postponed - again

Announcement of new lottery licence operator postponed - again

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Parks Tau, the trade and field minister, has postponed naming a profitable bidder to operate South Africa’s lottery in the event the tenure of present-day operator, Ithuba, ends in Could subsequent calendar year.

Ithuba’s licence was because of to obtain expired in Could 2023 but was prolonged for two yrs by Tau’s predecessor Ebrahim Patel following a request because of the then freshly-appointed board in the Nationwide Lotteries Fee (NLC).

The Board, which was managing the corruption that had overcome the NLC, also recommended Patel of representations by Ithuba that it were seriously influenced via the Covid pandemic. This included a ban around the sale of lottery tickets at the height of the pandemic.

With regards to the extension, Ithuba had to make contributions to the NLC for distribution to superior will cause at a better charge than supplied for of their First licence.

New licence operators are offered 6 months to setup infrastructure, which include ticket machines countrywide, to acquire more than with the prior operator prior to the incumbent’s licence finishes. This hottest postponement implies that there will not be adequate time for your sleek changeover and It is not likely that Tau will increase Ithuba’s licence again.

The process of appointing a brand new licence operator has also been suffering from allegations of conflict of curiosity and also other concerns.

GroundUp has realized that the NLC has contingency designs in position to continue funding superior brings about for around a calendar year If your lottery plus the sale of lottery tickets are suspended.

The contingency also covers funding from the occasion of litigation by shedding bidders when a new operator is eventually announced, which could also derail The graceful jogging in the lottery.

In the event ticket gross sales are stopped, the NLC will use its reserves of R3.nine-billion to continue funding qualifying organisations, a resource with knowledge of the contingency system explained to GroundUp.

In his weekend statement announcing the postponement, Tau explained: “Sad to say, I'm not ready for making a remaining conclusion at this time. Any this sort of determination right now would in all very good conscience suggest which i have not applied my head with because of consideration of all the applicable components.”

“I have discovered matters that involve even further analysis. It might be inappropriate to reveal these concerns now as well as their disclosure could extremely very well prejudice the proper adjudication in the awarding of your licence.”

Tau mentioned he was awaiting assistance on The ultimate way to ensure the continuation in the lottery while in the interim and the “improvement of a programme to finalise this method”.

This, he claimed, need to be finished after session While using the Nationwide Treasury.”

Tau also hinted in the political make-up from the consortiums bidding with the licence as An additional attainable basis for the postponement.

He mentioned: “I need to also be certain that the owners and supervisors of your productive applicants are, as being the Act states, ‘fit and appropriate people’. In addition, I must make sure that no political social gathering or political office-bearer has any direct money interest inside the applicant or possibly a shareholder of your applicant.”

Enterprise Day noted previously that almost all of the companies shortlisted with the tender are politically exposed.

The Gold Hurry consortium is led by superior-profile businessperson Sandile Zungu, who challenged for that ANC KwaZulu-Natal chair place in 2022 prior to dropping out soon after he did not garner more than enough guidance, the paper reported.

One more politically related bidder is HCI, that's bulk-owned via the South African Clothing and Textile Workers’ Union, an affiliate of Cosatu, which can be in alliance While using the ANC. CEO Johnny Copelyn donated to President Cyril Ramaphosa’s CR17 marketing campaign with the ANC presidency.

Another shortlisted bidder, according to Enterprise Day, is Thebe Financial commitment Corporation, which was Started by ANC leaders in 1992. Thebe is half-owned by Batho Batho Trust. The belief has donated R60-million towards the ANC given that 2021, Based on declarations designed for the electoral Fee.

Ithuba, the holder of the licence, is likewise inside the running, as is Umbulelo Consortium, led by Afrirent Holdings; and Giya Video games, In keeping with Company Day.

Vivien Natasen consulted for Giya Video games on its bid. GroundUp documented in 2022 that Natasen, throughผล หวย หุ้น his business Neo Alternatives, contributed R2-million towards the luxury mansion in the then-NLC chair Aflred Nevhutanda — even though his corporation Neo Alternatives experienced a agreement Along with the NLC. Natasen instructed GroundUp at that time that Neo Answers was “appointed with the NLC’s source chain procedures, as and when companies are essential”.

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