Parks Tau, the trade and industry minister, has postponed naming a winning bidder to operate South Africa’s lottery once the tenure of existing operator, Ithuba, finishes in May well subsequent calendar year.

Ithuba’s licence was due to own expired in May perhaps 2023 but was prolonged for 2 years by Tau’s predecessor Ebrahim Patel after a request with the then freshly-appointed board of your Countrywide Lotteries Fee (NLC).

The Board, which was handling the corruption that had confused the NLC, also encouraged Patel of representations by Ithuba that it were severely afflicted with the Covid pandemic. This incorporated a ban on the sale of lottery tickets at the peak in the pandemic.

With regard to the extension, Ithuba experienced to help make contributions on the NLC for distribution to good triggers at an increased rate than supplied for within their Preliminary licence.

New licence operators are presented six months to create infrastructure, like ticket devices countrywide, to get above from your earlier operator before the incumbent’s licence finishes. This most current postponement implies that there won't be adequate time to get a sleek transition and It is actually unlikely that Tau will prolong Ithuba’s licence once more.

The whole process of appointing a whole new licence operator has also been plagued by allegations of conflict of curiosity as well as other troubles.

GroundUp has acquired that the NLC has contingency ideas in position to continue funding very good results in for up to a year if the lottery as well as the sale of lottery tickets are suspended.

The contingency also addresses funding inside the occasion of litigation by losing bidders any time a new operator is at last introduced, which could also derail the smooth functioning with the lottery.

In the event ticket sales are stopped, the NLC will use its reserves of R3.9-billion to carry on funding qualifying organisations, a supply with expertise in the contingency program explained to GroundUp.

In his weekend statement announcing the postponement, Tau claimed: “Sadly, I am not able to make a last final decision at this time. Any such selection at the moment would in all very good conscience signify which i have not applied my thoughts with due consideration of all the relevant things.”

“I've recognized matters that involve further more evaluation. It would be inappropriate to reveal these concerns now as well as their disclosure could quite nicely prejudice the appropriate adjudication in the awarding of the licence.”

Tau claimed he was awaiting guidance on The easiest method to make sure the continuation of the lottery inside the interim as well as “improvement of a programme to finalise this process”.

This, he explained, need to be done following consultation Using the National Treasury.”

Tau also hinted in the political make-up of your consortiums bidding for that licence as A different attainable basis for the postponement.

He stated: “I need to also be sure that the homeowners and managers with the productive applicants are, as the Act states, ‘in shape and proper people’. In addition, I have to make sure no political celebration or political Office environment-bearer has any immediate financial interest inside the applicant or maybe a shareholder of your applicant.”

Company Day reported Beforehand that most of the companies shortlisted for the tender are politically exposed.

The Gold Rush consortium is led by significant-profile businessperson Sandile Zungu, who challenged for that ANC KwaZulu-Natal chair posture in 2022 right before dropping out after he didn't garner ample help, the paper noted.

Another politically linked bidder is HCI, which is the vast majority-owned because of the South African Clothing and Textile Employees’ Union, an affiliate of Cosatu, which is in alliance Along with the ANC. CEO Johnny Copelyn donated to President Cyril Ramaphosa’s CR17 marketing campaign for the ANC presidency.

One more shortlisted bidder, according to Enterprise Day, is Thebe Financial investment Company, which was Established by ANC leaders in 1992. Thebe is half-owned by Batho Batho Rely on. The rely on has donated R60-million into the ANC since 2021, Based on declarations produced towards the electoral commission.

Ithuba, the holder of your licence, is usually during the managing, as is Umbulelo Consortium, led by Afrirent Holdings; and Giya Video games, Based on Business Working day.

Vivien Natasen consulted for Giya Games on its bid. GroundUp claimed in 2022 that Natasen, by way ofหวย วัน นี้ his company Neo Methods, contributed R2-million toward the luxury mansion with the then-NLC chair Aflred Nevhutanda — whilst his enterprise Neo Options had a agreement with the NLC. Natasen instructed GroundUp At the moment that Neo Answers was “appointed from the NLC’s supply chain processes, as and when companies are demanded”.

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