ANNOUNCEMENT OF LATEST LOTTERY LICENCE OPERATOR POSTPONED - ALL OVER AGAIN

Announcement of latest lottery licence operator postponed - all over again

Announcement of latest lottery licence operator postponed - all over again

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Parks Tau, the trade and business minister, has postponed naming a winning bidder to operate South Africa’s lottery if the tenure of latest operator, Ithuba, finishes in Could up coming calendar year.

Ithuba’s licence was because of to have expired in Could 2023 but was prolonged for 2 yrs by Tau’s predecessor Ebrahim Patel after a request by the then newly-appointed board of your National Lotteries Commission (NLC).

The Board, which was dealing with the corruption that had overcome the NLC, also encouraged Patel of representations by Ithuba that it were severely affected from the Covid pandemic. This provided a ban about the sale of lottery tickets at the height of your pandemic.

In terms of the extension, Ithuba experienced to produce contributions into the NLC for distribution to excellent results in at a greater fee than provided for within their First licence.

New licence operators are specified six months to create infrastructure, including ticket equipment countrywide, to take about within the prior operator before the incumbent’s licence finishes. This most up-to-date postponement signifies that there will not be sufficient time for just a clean transition and It's not likely that Tau will extend Ithuba’s licence yet again.

The entire process of appointing a new licence operator has also been stricken by allegations of conflict of fascination together with other concerns.

GroundUp has learned that the NLC has contingency designs in place to continue funding good brings about for nearly a year If your lottery plus the sale of lottery tickets are suspended.

The contingency also covers funding from the party of litigation by losing bidders each time a new operator is last but not least declared, which could also derail The graceful running of your lottery.

In case ticket income 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 told GroundUp.

In his weekend assertion asserting the postponement, Tau mentioned: “Sadly, I am not ready to produce a remaining selection at this time. Any these types of choice at the moment would in all very good conscience necessarily mean that I have not applied my mind with due thing to consider of all the pertinent variables.”

“I have identified issues that require additional analysis. It could be inappropriate to disclose these issues now as well as their disclosure could incredibly very well prejudice the right adjudication in the awarding of the licence.”

Tau claimed he was awaiting suggestions on The ultimate way to ensure the continuation with the lottery while in the interim and the “progress of a programme to finalise this process”.

This, he mentioned, needs to be carried out soon after consultation Along with the Countrywide Treasury.”

Tau also hinted within the political make-up of your consortiums bidding with the licence as A further probable reason for the postponement.

He reported: “I have to also make sure that the entrepreneurs and supervisors of the thriving applicants are, since the Act states, ‘match and right persons’. Also, I need to make certain that no political bash or political Place of work-bearer has any direct fiscal desire in the applicant or perhaps a shareholder in the applicant.”

Organization Day documented Formerly that a lot of of the businesses shortlisted to 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 situation in 2022 just before dropping out right after he failed to garner plenty of help, the paper reported.

A further politically connected bidder is HCI, which happens to be greater part-owned from the South African Garments and Textile Workers’ Union, an affiliate of Cosatu, that's in alliance Using the ANC. CEO Johnny Copelyn donated to President Cyril Ramaphosa’s CR17 campaign to the ANC presidency.

A further shortlisted bidder, Based on Enterprise Day, is Thebe Expenditure Corporation, which was founded by ANC leaders in 1992. Thebe is half-owned by Batho Batho Believe in. The trust has donated R60-million to the ANC since 2021, according to declarations built to your electoral commission.

Ithuba, the holder from the licence, is also from the working, as is Umbulelo Consortium, led by Afrirent Holdings; and Giya Game titles, In accordance with Business enterprise Day.

Vivien Natasen consulted for Giya Video games on its bid. GroundUp described in 2022 that Natasen, throughเช ค หวย his company Neo Alternatives, contributed R2-million in the direction of the luxurious mansion from the then-NLC chair Aflred Nevhutanda — when his business Neo Alternatives experienced a contract With all the NLC. Natasen instructed GroundUp At the moment that Neo Solutions was “appointed with the NLC’s provide chain processes, as and when companies are expected”.

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