Parks Tau, the trade and industry minister, has postponed naming a winning bidder to operate South Africa’s lottery in the event the tenure of present-day operator, Ithuba, finishes in May well future calendar year.
Ithuba’s licence was owing to acquire expired in May perhaps 2023 but was extended for 2 yrs by Tau’s predecessor Ebrahim Patel following a request via the then newly-appointed board on the Countrywide Lotteries Fee (NLC).
The Board, which was dealing with the corruption that had confused the NLC, also advised Patel of representations by Ithuba that it had been severely impacted with the Covid pandemic. This bundled a ban over the sale of lottery tickets at the peak of your pandemic.
When it comes to the extension, Ithuba had to make contributions to the NLC for distribution to superior results in at an increased charge than offered for of their First licence.
New licence operators are offered 6 months to setup infrastructure, including ticket devices countrywide, to take in excess of in the past operator before the incumbent’s licence ends. This most current postponement ensures that there won't be sufficient time for the clean changeover and It is actually not likely that Tau will increase Ithuba’s licence again.
The process of appointing a fresh licence operator has also been affected by allegations of conflict of fascination and various difficulties.
GroundUp has figured out the NLC has contingency ideas set up to carry on funding great causes for as many as a yr if the lottery as well as sale of lottery tickets are suspended.
The contingency also addresses funding during the occasion of litigation by getting rid of bidders whenever a new operator is eventually declared, which could also derail the smooth working with the lottery.
In case ticket product sales 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 advised GroundUp.
In his weekend statement announcing the postponement, Tau stated: “Regrettably, I am not ready for making a closing final decision at this stage. Any this sort of choice presently would in all very good conscience suggest which i have not utilized my mind with owing consideration of the many related things.”
“I have recognized issues that involve more analysis. It will be inappropriate to reveal these problems now and their disclosure could quite very well prejudice the appropriate adjudication of the awarding from the licence.”
Tau stated he was awaiting suggestions on the best way to make sure the continuation with the lottery from the interim plus the “growth of a programme to finalise this method”.
This, he mentioned, should be done immediately after consultation Using the Countrywide Treasury.”
Tau also hinted on the political make-up with the consortiums bidding for your licence as A further achievable reason for the postponement.
He mentioned: “I need to also make sure that the homeowners and administrators of the productive applicants are, since the Act states, ‘healthy and good folks’. On top of that, I need to make sure no political bash or political Business-bearer has any direct economic curiosity in the applicant or simply a shareholder on the applicant.”
Company Working day noted Earlier that almost all of the businesses shortlisted for your tender are politically uncovered.
The Gold Hurry consortium is led by higher-profile businessperson Sandile Zungu, who challenged to the ANC KwaZulu-Natal chair posture in 2022 just before dropping out immediately after he didn't garner enough assistance, the paper documented.
A different politically linked bidder is HCI, which happens to be majority-owned from the South African Clothing and Textile Personnel’ Union, an affiliate of Cosatu, which happens to be in alliance While using the ANC. CEO Johnny Copelyn donated to President Cyril Ramaphosa’s CR17 campaign for your ANC presidency.
Another shortlisted bidder, In keeping with Business enterprise Day, is Thebe Investment Corporation, which was Established by ANC leaders in 1992. Thebe is half-owned by Batho Batho Belief. The have faith in has donated R60-million into the ANC due to the fact 2021, Based on declarations built to the electoral commission.
Ithuba, the holder in the licence, can be during the running, as is Umbulelo Consortium, led by Afrirent Holdings; and Giya Game titles, according to Business Working day.
Vivien Natasen consulted for Giya Online games on its bid. GroundUp documented in 2022 that Natasen, by means ofตรวจ หวย his company Neo Answers, contributed R2-million in direction of the posh mansion in the then-NLC chair Aflred Nevhutanda — although his organization Neo Answers had a deal While using the NLC. Natasen instructed GroundUp at that time that Neo Solutions was “appointed in the NLC’s provide chain procedures, as and when expert services are necessary”.