ANNOUNCEMENT OF LATEST LOTTERY LICENCE OPERATOR POSTPONED - AGAIN

Announcement of latest lottery licence operator postponed - again

Announcement of latest lottery licence operator postponed - again

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Parks Tau, the trade and market minister, has postponed naming a winning bidder to operate South Africa’s lottery once the tenure of present-day operator, Ithuba, finishes in Could following 12 months.

Ithuba’s licence was owing to acquire expired in May perhaps 2023 but was prolonged for two several years by Tau’s predecessor Ebrahim Patel after a ask for by the then freshly-appointed board with the National Lotteries Fee (NLC).

The Board, which was managing the corruption that had confused the NLC, also recommended Patel of representations by Ithuba that it had been severely affected with the Covid pandemic. This integrated a ban over the sale of lottery tickets at the height on the pandemic.

When it comes to the extension, Ithuba experienced to help make contributions for the NLC for distribution to fantastic causes at a greater charge than delivered for of their Original licence.

New licence operators are given 6 months to arrange infrastructure, including ticket equipment countrywide, to acquire about through the earlier operator before the incumbent’s licence finishes. This most current postponement implies that there won't be adequate time for a clean transition and It can be unlikely that Tau will prolong Ithuba’s licence again.

The entire process of appointing a brand new licence operator has also been tormented by allegations of conflict of interest together with other problems.

GroundUp has uncovered which the NLC has contingency designs in place to carry on funding good triggers for approximately a 12 months In case the lottery as well as sale of lottery tickets are suspended.

The contingency also handles funding during the celebration of litigation by shedding bidders whenever a new operator is lastly declared, which could also derail The sleek jogging with 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 source with expertise in the contingency prepare told GroundUp.

In his weekend assertion saying the postponement, Tau said: “Sad to say, I'm not in a position to produce a last decision at this time. Any these types of choice presently would in all very good conscience suggest which i haven't used my thoughts with owing thought of many of the related aspects.”

“I have identified issues that require further analysis. It might be inappropriate to disclose these issues now as well as their disclosure could really well prejudice the appropriate adjudication on the awarding from the licence.”

Tau claimed he was awaiting tips on The ultimate way to ensure the continuation on the lottery in the interim as well as the “enhancement of the programme to finalise this method”.

This, he mentioned, have to be finished following consultation With all the National Treasury.”

Tau also hinted in the political make-up on the consortiums bidding to the licence as One more achievable basis for the postponement.

He mentioned: “I must also make sure the house owners and professionals from the successful applicants are, given that the Act states, ‘in shape and proper people’. In addition, I have to ensure that no political social gathering or political office-bearer has any direct money interest from the applicant or even a shareholder of your applicant.”

Organization Day described Beforehand that almost all of the companies shortlisted to the tender are politically exposed.

The Gold Rush consortium is led by large-profile businessperson Sandile Zungu, who challenged for your ANC KwaZulu-Natal chair place in 2022 prior to dropping out following he failed to garner plenty of assist, the paper reported.

A further politically connected bidder is HCI, which is the vast majority-owned with the South African Clothing and Textile Staff’ Union, an affiliate of Cosatu, which is in alliance While using the ANC. CEO Johnny Copelyn donated to President Cyril Ramaphosa’s CR17 campaign for your ANC presidency.

One more shortlisted bidder, As outlined by Company Day, is Thebe Investment decision Corporation, which was Started by ANC leaders in 1992. Thebe is fifty percent-owned by Batho Batho Have confidence in. The believe in has donated R60-million towards the ANC given that 2021, Based on declarations created towards the electoral commission.

Ithuba, the holder from the licence, can also be within the running, as is Umbulelo Consortium, led by Afrirent Holdings; and Giya Online games, In accordance with Business Day.

Vivien Natasen consulted for Giya Games on its bid. GroundUp documented in 2022 that Natasen, throughตรวจ หวย รัฐบาล his business Neo Methods, contributed R2-million toward the luxury mansion on the then-NLC chair Aflred Nevhutanda — while his firm Neo Methods had a contract Along with the NLC. Natasen told GroundUp at that time that Neo Answers was “appointed from the NLC’s source chain procedures, as and when services are needed”.

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