Parks Tau, the trade and field minister, has postponed naming a profitable bidder to operate South Africa’s lottery if the tenure of existing operator, Ithuba, finishes in May perhaps following year.
Ithuba’s licence was owing to get expired in May 2023 but was extended for 2 many years by Tau’s predecessor Ebrahim Patel following a ask for through the then freshly-appointed board of the Nationwide Lotteries Commission (NLC).
The Board, which was dealing with the corruption that had overwhelmed the NLC, also suggested Patel of representations by Ithuba that it had been severely impacted because of the Covid pandemic. This bundled a ban around the sale of lottery tickets at the height from the pandemic.
Regarding the extension, Ithuba had to generate contributions for the NLC for distribution to excellent triggers at a higher rate than delivered for inside their initial licence.
New licence operators are specified six months to arrange infrastructure, which include ticket machines countrywide, to acquire more than with the earlier operator before the incumbent’s licence finishes. This most recent postponement means that there will not be enough time for a easy changeover and It is not likely that Tau will extend Ithuba’s licence all over again.
The entire process of appointing a new licence operator has also been tormented by allegations of conflict of fascination along with other problems.
GroundUp has uncovered the NLC has contingency strategies set up to continue funding excellent triggers for as much as a year if the lottery and also the sale of lottery tickets are suspended.
The contingency also handles funding from the occasion of litigation by getting rid of bidders every time a new operator is at last introduced, which could also derail The graceful running of your lottery.
In the event ticket revenue are stopped, the NLC will use its reserves of R3.nine-billion to carry on funding qualifying organisations, a source with familiarity with the contingency plan informed GroundUp.
In his weekend statement saying the postponement, Tau reported: “Regrettably, I am not able to help make a final selection at this stage. Any this kind of selection at this time would in all great conscience imply which i haven't applied my mind with thanks thought of each of the relevant variables.”
“I've identified matters that have to have additional evaluation. It could be inappropriate to reveal these challenges now and their disclosure could extremely effectively prejudice the right adjudication with the awarding of your licence.”
Tau said he was awaiting advice on The ultimate way to make sure the continuation on the lottery while in the interim along with the “growth of a programme to finalise this method”.
This, he mentioned, should be finished immediately after consultation with the Nationwide Treasury.”
Tau also hinted at the political makeup with the consortiums bidding for your licence as A different feasible cause for the postponement.
He said: “I must also be certain that the entrepreneurs and managers from the productive applicants are, as being the Act states, ‘healthy and good folks’. On top of that, I need to be sure that no political occasion or political Office environment-bearer has any direct financial desire while in the applicant or even a shareholder of the applicant.”
Small business Day described previously that the majority of of the companies shortlisted for that tender are politically uncovered.
The Gold Hurry consortium is led by large-profile businessperson Sandile Zungu, who challenged for that ANC KwaZulu-Natal chair position in 2022 ahead of dropping out just after he didn't garner sufficient help, the paper documented.
A different politically linked bidder is HCI, and that is the vast majority-owned via the South African Outfits and Textile Staff’ Union, an affiliate of Cosatu, and that is in alliance Along with the ANC. CEO Johnny Copelyn donated to President Cyril Ramaphosa’s CR17 campaign with the ANC presidency.
A different shortlisted bidder, In line with Company Working day, is Thebe Investment decision Company, which was founded by ANC leaders in 1992. Thebe is fifty percent-owned by Batho Batho Trust. The have confidence in has donated R60-million to the ANC due to the fact 2021, according to declarations created to your electoral Fee.
Ithuba, the holder of your licence, is also within the working, as is Umbulelo Consortium, led by Afrirent Holdings; and Giya Video games, In line with Organization Day.
Vivien Natasen consulted for Giya Games on its bid. GroundUp claimed in 2022 that Natasen, byหุ้น ชอง 9 his firm Neo Alternatives, contributed R2-million to the luxurious mansion with the then-NLC chair Aflred Nevhutanda — though his enterprise Neo Methods experienced a contract Using the NLC. Natasen told GroundUp At the moment that Neo Answers was “appointed with the NLC’s source chain processes, as and when services are expected”.