Parks Tau, the trade and industry minister, has postponed naming a profitable bidder to operate South Africa’s lottery if the tenure of recent operator, Ithuba, ends in May future 12 months.

Ithuba’s licence was due to acquire expired in Could 2023 but was prolonged for 2 a long time by Tau’s predecessor Ebrahim Patel following a ask for with the then freshly-appointed board of the National Lotteries Commission (NLC).

The Board, which was dealing with the corruption that experienced overwhelmed the NLC, also advised Patel of representations by Ithuba that it had been seriously affected from the Covid pandemic. This incorporated a ban about the sale of lottery tickets at the peak of the pandemic.

Concerning the extension, Ithuba had for making contributions to the NLC for distribution to great brings about at an increased rate than presented for inside their Original licence.

New licence operators are specified 6 months to set up infrastructure, like ticket equipment countrywide, to acquire over from the past operator before the incumbent’s licence finishes. This most up-to-date postponement means that there won't be sufficient time for the sleek transition and It's not likely that Tau will extend Ithuba’s licence once again.

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

GroundUp has acquired which the NLC has contingency designs set up to carry on funding very good brings about for approximately a yr When the lottery along with the sale of lottery tickets are suspended.

The contingency also covers funding in the celebration of litigation by losing bidders each time a new operator is finally introduced, which could also derail The sleek functioning from the lottery.

Just in case ticket gross sales are stopped, the NLC will use its reserves of R3.nine-billion to carry on funding qualifying organisations, a source with knowledge of the contingency strategy informed GroundUp.

In his weekend statement announcing the postponement, Tau said: “Sadly, I'm not ready for making a closing determination at this stage. Any such decision right now would in all excellent conscience imply which i have not utilized my mind with owing consideration of every one of the related components.”

“I have recognized issues that require even more analysis. It will be inappropriate to reveal these problems now and their disclosure could quite perfectly prejudice the proper adjudication from the awarding in the licence.”

Tau explained he was awaiting assistance on The easiest method to ensure the continuation of the lottery in the interim and the “development of the programme to finalise this process”.

This, he said, need to be accomplished following session With all the Countrywide Treasury.”

Tau also hinted on the political make-up of the consortiums bidding to the licence as another attainable reason behind the postponement.

He stated: “I have to also make sure the owners and professionals in the prosperous applicants are, given that the Act states, ‘in good shape and proper persons’. In addition, I need to make sure no political bash or political Business-bearer has any immediate economic interest during the applicant or maybe a shareholder in the applicant.”

Company Working day reported Earlier that the majority of the businesses shortlisted with the tender are politically exposed.

The Gold Rush consortium is led by significant-profile businessperson Sandile Zungu, who challenged for the ANC KwaZulu-Natal chair placement in 2022 right before dropping out following he failed to garner ample guidance, the paper claimed.

Another politically connected bidder is HCI, that is bulk-owned through the South African Clothes and Textile Workers’ Union, an affiliate of Cosatu, which is in alliance with the ANC. CEO Johnny Copelyn donated to President Cyril Ramaphosa’s CR17 marketing campaign for your ANC presidency.

Another shortlisted bidder, In keeping with Small business Day, is Thebe Financial investment Corporation, which was Launched by ANC leaders in 1992. Thebe is half-owned by Batho Batho Have faith in. The believe in has donated R60-million on the ANC since 2021, In line with declarations designed into the electoral Fee.

Ithuba, the holder of the licence, can also be inside the working, as is Umbulelo Consortium, led by Afrirent Holdings; and Giya Video games, In accordance with Organization Day.

Vivien Natasen consulted for Giya Game titles on its bid. GroundUp described in 2022 that Natasen, by way ofสลาก กิน his enterprise Neo Solutions, contributed R2-million towards the luxury mansion of the then-NLC chair Aflred Nevhutanda — while his company Neo Methods experienced a contract Using the NLC. Natasen told GroundUp At the moment that Neo Options was “appointed through the NLC’s offer chain processes, as and when expert services are necessary”.