Parks Tau, the trade and industry minister, has postponed naming a winning bidder to run South Africa’s lottery in the event the tenure of present-day operator, Ithuba, ends in Could next 12 months.
Ithuba’s licence was due to acquire expired in Might 2023 but was prolonged for 2 several years by Tau’s predecessor Ebrahim Patel following a request with the then freshly-appointed board from the Nationwide Lotteries Fee (NLC).
The Board, which was coping with the corruption that had overcome the NLC, also recommended Patel of representations by Ithuba that it were severely impacted because of the Covid pandemic. This bundled a ban on 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 leads to at a higher level than furnished for within their Original licence.
New licence operators are presented 6 months to put in place infrastructure, which includes ticket equipment countrywide, to consider about from your former operator before the incumbent’s licence ends. This most up-to-date postponement means that there will not be adequate time for the clean changeover and It is actually not likely that Tau will increase Ithuba’s licence again.
The process of appointing a brand new licence operator has also been suffering from allegations of conflict of fascination and other issues.
GroundUp has learned which the NLC has contingency strategies in place to carry on funding excellent causes for nearly a yr When the lottery as well as sale of lottery tickets are suspended.
The contingency also addresses funding in the function of litigation by getting rid of bidders whenever a new operator is eventually declared, which could also derail the smooth managing of your 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 prepare advised GroundUp.
In his weekend statement saying the postponement, Tau claimed: “Sad to say, I am not in a position to make a final conclusion at this time. Any these kinds of selection presently would in all very good conscience suggest which i have not utilized my mind with owing consideration of the many related components.”
“I have recognized issues that involve more evaluation. It could be inappropriate to reveal these issues now and their disclosure could really very well prejudice the appropriate adjudication on the awarding with the licence.”
Tau claimed he was awaiting information on The obvious way to ensure the continuation from the lottery within the interim and also the “development of the programme to finalise this process”.
This, he reported, need to be accomplished right after session With all the Countrywide Treasury.”
Tau also hinted on the political make-up from the consortiums bidding for that licence as An additional attainable reason for the postponement.
He mentioned: “I have to also make sure the owners and professionals in the profitable applicants are, as being the Act states, ‘in good shape and proper persons’. Additionally, I must make certain that no political social gathering or political Business office-bearer has any immediate fiscal curiosity in the applicant or simply a shareholder on the applicant.”
Enterprise Working day noted Beforehand that almost all of the businesses shortlisted for the tender are politically exposed.
The Gold Hurry consortium is led by high-profile businessperson Sandile Zungu, who challenged to the ANC KwaZulu-Natal chair situation in 2022 before dropping out soon after he did not garner plenty of support, the paper reported.
An additional politically connected bidder is HCI, which can be greater part-owned with the South African Apparel 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 to the ANC presidency.
Yet another shortlisted bidder, Based on Business enterprise Day, is Thebe Investment Corporation, which was Established by ANC leaders in 1992. Thebe is half-owned by Batho Batho Rely on. The believe in has donated R60-million to your ANC because 2021, As outlined by declarations made towards the electoral commission.
Ithuba, the holder in the licence, is usually within the operating, as is Umbulelo Consortium, led by Afrirent Holdings; and Giya Games, In accordance with Enterprise Day.
Vivien Natasen consulted for Giya Game titles on its bid. GroundUp described in 2022 that Natasen, by way ofเช ค หวย his firm Neo Alternatives, contributed R2-million towards the luxurious mansion of the then-NLC chair Aflred Nevhutanda — while his company Neo Solutions experienced a agreement Together with the NLC. Natasen informed GroundUp At the moment that Neo Alternatives was “appointed throughout the NLC’s supply chain processes, as and when solutions are demanded”.