ANNOUNCEMENT OF RECENT LOTTERY LICENCE OPERATOR POSTPONED - ALL OVER AGAIN

Announcement of recent lottery licence operator postponed - all over again

Announcement of recent lottery licence operator postponed - all over again

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Parks Tau, the trade and industry minister, has postponed naming a successful bidder to operate South Africa’s lottery once the tenure of present-day operator, Ithuba, ends in May possibly future year.

Ithuba’s licence was thanks to have expired in Could 2023 but was extended for 2 decades by Tau’s predecessor Ebrahim Patel following a request from the then newly-appointed board of your Nationwide Lotteries Commission (NLC).

The Board, which was dealing with the corruption that experienced overcome the NLC, also advised Patel of representations by Ithuba that it had been seriously impacted by the Covid pandemic. This involved a ban around the sale of lottery tickets at the peak of your pandemic.

With regard to the extension, Ithuba experienced to produce contributions to your NLC for distribution to good triggers at an increased rate than supplied for within their Preliminary licence.

New licence operators are presented six months to create infrastructure, like ticket devices countrywide, to get above from your earlier operator before the incumbent’s licence finishes. This most current postponement implies that there won't be adequate time to get a sleek transition and It is unlikely that Tau will increase Ithuba’s licence once again.

The process of appointing a whole new licence operator has also been plagued by allegations of conflict of fascination as well as other difficulties.

GroundUp has learned that the NLC has contingency programs in position to carry on funding superior causes for as much as a yr In the event the lottery plus the sale of lottery tickets are suspended.

The contingency also addresses funding while in the function of litigation by dropping bidders whenever a new operator is lastly declared, which could also derail The sleek operating of the lottery.

Just in case ticket product sales are stopped, the NLC will use its reserves of R3.nine-billion to continue funding qualifying organisations, a supply with knowledge of the contingency system informed GroundUp.

In his weekend assertion asserting the postponement, Tau stated: “Sad to say, I'm not in a position to generate a remaining choice at this stage. Any these conclusion at this time would in all great conscience suggest that I have not used my intellect with thanks thing to consider of many of the applicable things.”

“I have identified issues that have to have even more evaluation. It will be inappropriate to disclose these issues now as well as their disclosure could extremely perfectly prejudice the right adjudication of the awarding with the licence.”

Tau stated he was awaiting assistance on The easiest way to make sure the continuation in the lottery during the interim and also the “growth of the programme to finalise this method”.

This, he claimed, must be carried out right after consultation With all the Nationwide Treasury.”

Tau also hinted on the political makeup of the consortiums bidding with the licence as A further doable basis for the postponement.

He mentioned: “I need to also make sure the homeowners and managers with the productive applicants are, given that the Act states, ‘in shape and proper individuals’. On top of that, I must be certain that no political bash or political Place of work-bearer has any direct money desire in the applicant or perhaps a shareholder in the applicant.”

Organization Day noted Formerly that almost all of the companies shortlisted with the tender are politically uncovered.

The Gold Rush consortium is led by high-profile businessperson Sandile Zungu, who challenged with the ANC KwaZulu-Natal chair situation in 2022 ahead of dropping out following he didn't garner ample support, the paper described.

An additional politically related bidder is HCI, that is the vast majority-owned through the South African Garments and Textile Personnel’ Union, an affiliate of Cosatu, which can be in alliance Along with the ANC. CEO Johnny Copelyn donated to President Cyril Ramaphosa’s CR17 campaign with the ANC presidency.

An additional shortlisted bidder, according to Business enterprise Day, is Thebe Expenditure Company, which was Established by ANC leaders in 1992. Thebe is 50 %-owned by Batho Batho Believe in. The rely on has donated R60-million into the ANC because 2021, In accordance with declarations produced for the electoral commission.

Ithuba, the holder from the licence, can also be inside the running, as is Umbulelo Consortium, led by Afrirent Holdings; and Giya Video games, In line with Company Working day.

Vivien Natasen consulted for Giya Game titles on its bid. GroundUp reported in 2022 that Natasen, by way ofหวย ลาว ออก วัน นี้ สด his firm Neo Options, contributed R2-million towards the posh mansion of your then-NLC chair Aflred Nevhutanda — although his company Neo Remedies experienced a deal With all the NLC. Natasen instructed GroundUp At the moment that Neo Methods was “appointed with the NLC’s provide chain processes, as and when providers are essential”.

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