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 current operator, Ithuba, finishes in May possibly up coming year.

Ithuba’s licence was owing to possess expired in May perhaps 2023 but was extended for 2 a long time by Tau’s predecessor Ebrahim Patel following a ask for 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 seriously afflicted by the Covid pandemic. This integrated a ban within the sale of lottery tickets at the height in the pandemic.

With regard to the extension, Ithuba experienced to generate contributions on the NLC for distribution to very good triggers at a greater price than provided for of their Preliminary licence.

New licence operators are given 6 months to setup infrastructure, together with ticket devices countrywide, to choose in excess of from the preceding operator ahead of the incumbent’s licence ends. This most current postponement ensures that there will not be adequate time for the sleek changeover and It is unlikely that Tau will extend Ithuba’s licence once more.

The entire process of appointing a whole new licence operator has also been tormented by allegations of conflict of fascination and other issues.

GroundUp has learned which the NLC has contingency strategies in place to carry on funding very good triggers for as much as a calendar year In case the lottery as well as the sale of lottery tickets are suspended.

The contingency also handles funding while in the event of litigation by dropping bidders any time a new operator is lastly introduced, which could also derail the smooth operating from the lottery.

In the event that ticket income are stopped, the NLC will use its reserves of R3.9-billion to carry on funding qualifying organisations, a source with knowledge of the contingency prepare told GroundUp.

In his weekend assertion announcing the postponement, Tau said: “Sad to say, I'm not ready to create a closing decision at this stage. Any these kinds of final decision at this time would in all good conscience suggest which i have not used my intellect with owing consideration of all of the relevant things.”

“I have identified matters that call for more analysis. It might be inappropriate to disclose these issues now and their disclosure could quite perfectly prejudice the proper adjudication in the awarding with the licence.”

Tau reported he was awaiting guidance on The simplest way to ensure the continuation from the lottery inside the interim plus the “progress of the programme to finalise this process”.

This, he mentioned, have to be performed immediately after consultation Together with the Nationwide Treasury.”

Tau also hinted at the political make-up with the consortiums bidding to the licence as A different doable cause for the postponement.

He mentioned: “I need to also make certain that the homeowners and managers of your prosperous applicants are, because the Act states, ‘in good shape and suitable people’. Additionally, I have to be sure that no political celebration or political Office environment-bearer has any immediate financial interest while in the applicant or simply a shareholder of your applicant.”

Business Working day documented previously that the majority of the companies shortlisted for that tender are politically exposed.

The Gold Rush consortium is led by higher-profile businessperson Sandile Zungu, who challenged for that ANC KwaZulu-Natal chair place in 2022 in advance of dropping out right after he didn't garner sufficient guidance, the paper documented.

An additional politically linked bidder is HCI, that is the greater part-owned from the South African Apparel and Textile Staff’ Union, an affiliate of Cosatu, that's in alliance Along with the ANC. CEO Johnny Copelyn donated to President Cyril Ramaphosa’s CR17 marketing campaign for that ANC presidency.

A different shortlisted bidder, In keeping with Small business Day, is Thebe Financial commitment Corporation, which was founded by ANC leaders in 1992. Thebe is 50 %-owned by Batho Batho Belief. The rely on has donated R60-million on the ANC due to the fact 2021, In line with declarations created towards the electoral Fee.

Ithuba, the holder of the licence, can be during the jogging, as is Umbulelo Consortium, led by Afrirent Holdings; and Giya Games, In line with Business enterprise Working day.

Vivien Natasen consulted for Giya Game titles on its bid. GroundUp reported in 2022 that Natasen, viaเช ค หวย his company Neo Remedies, contributed R2-million to the luxurious mansion from the then-NLC chair Aflred Nevhutanda — even though his corporation Neo Methods experienced a agreement Together with the NLC. Natasen explained to GroundUp At the moment that Neo Remedies was “appointed throughout the NLC’s supply chain procedures, as and when expert services are essential”.