Parks Tau, the trade and marketplace minister, has postponed naming a successful bidder to run South Africa’s lottery when the tenure of current operator, Ithuba, finishes in May perhaps future 12 months.
Ithuba’s licence was because of to possess expired in May 2023 but was extended for 2 yrs by Tau’s predecessor Ebrahim Patel after a request from the then recently-appointed board of the Nationwide Lotteries Commission (NLC).
The Board, which was coping with the corruption that had confused the NLC, also advised Patel of representations by Ithuba that it were severely impacted via the Covid pandemic. This integrated a ban about the sale of lottery tickets at the peak in the pandemic.
With regard to the extension, Ithuba had to help make contributions on the NLC for distribution to excellent causes at an increased amount than provided for inside their initial licence.
New licence operators are specified six months to build infrastructure, like ticket equipment countrywide, to take in excess of in the preceding operator ahead of the incumbent’s licence finishes. This newest postponement implies that there will not be adequate time for any smooth changeover and It's unlikely that Tau will increase Ithuba’s licence all over again.
The entire process of appointing a whole new licence operator has also been affected by allegations of conflict of curiosity and various troubles.
GroundUp has discovered which the NLC has contingency strategies in place to carry on funding great results in for approximately a yr When the lottery and the sale of lottery tickets are suspended.
The contingency also addresses funding from the event of litigation by dropping bidders any time a new operator is finally announced, which could also derail The sleek managing of your lottery.
In the event that ticket sales are stopped, the NLC will use its reserves of R3.9-billion to carry on funding qualifying organisations, a source with understanding of the contingency prepare advised GroundUp.
In his weekend statement announcing the postponement, Tau mentioned: “Regrettably, I'm not able to produce a remaining determination at this time. Any these choice right now would in all good conscience signify which i haven't used my mind with owing thing to consider of all the pertinent aspects.”
“I have identified matters that demand even more evaluation. It could be inappropriate to disclose these problems now and their disclosure could very perfectly prejudice the right adjudication with the awarding on the licence.”
Tau stated he was awaiting advice on The easiest way to ensure the continuation of the lottery during the interim along with the “improvement of a programme to finalise this method”.
This, he stated, needs to be completed immediately after session With all the Countrywide Treasury.”
Tau also hinted at the political make-up of the consortiums bidding for your licence as An additional feasible basis for the postponement.
He claimed: “I have to also make sure the entrepreneurs and administrators with the profitable applicants are, because the Act states, ‘fit and right individuals’. In addition, I have to make certain that no political party or political Office environment-bearer has any direct economic interest while in the applicant or a shareholder on the applicant.”
Company Day documented Earlier that most of the businesses shortlisted for the tender are politically exposed.
The Gold Rush consortium is led by superior-profile businessperson Sandile Zungu, who challenged for the ANC KwaZulu-Natal chair place in 2022 just before dropping out immediately after he did not garner ample assist, the paper documented.
Yet another politically linked bidder is HCI, that is vast majority-owned by the South African Outfits and Textile Employees’ Union, an affiliate of Cosatu, that is in alliance Using the ANC. CEO Johnny Copelyn donated to President Cyril Ramaphosa’s CR17 marketing campaign for the ANC presidency.
A further shortlisted bidder, In line with Company Working day, is Thebe Expense Corporation, which was Launched by ANC leaders in 1992. Thebe is 50 %-owned by Batho Batho Believe in. The rely on has donated R60-million towards the ANC due to the fact 2021, In accordance with declarations designed 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 line with Company Day.
Vivien Natasen consulted for Giya Game titles on its bid. GroundUp noted in 2022 that Natasen, as a result ofผล หวย his organization Neo Solutions, contributed R2-million toward the luxury mansion in the then-NLC chair Aflred Nevhutanda — though his organization Neo Solutions had a contract While using the NLC. Natasen informed GroundUp at that time that Neo Remedies was “appointed from the NLC’s source chain procedures, as and when services are needed”.
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