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

Ithuba’s licence was because of to have expired in May possibly 2023 but was prolonged for 2 many years by Tau’s predecessor Ebrahim Patel after a ask for by the then freshly-appointed board from the Nationwide Lotteries Fee (NLC).

The Board, which was coping with the corruption that had confused the NLC, also encouraged Patel of representations by Ithuba that it were seriously impacted through the Covid pandemic. This included a ban within the sale of lottery tickets at the peak in the pandemic.

Regarding the extension, Ithuba experienced to make contributions to the NLC for distribution to great leads to at a greater level than furnished for within their First licence.

New licence operators are given six months to arrange infrastructure, like ticket machines countrywide, to acquire in excess of within the earlier operator prior to the incumbent’s licence finishes. This most current postponement ensures that there won't be adequate time for the clean changeover and It is actually unlikely that Tau will lengthen Ithuba’s licence again.

The process of appointing a new licence operator has also been plagued by allegations of conflict of desire along with other concerns.

GroundUp has learned which the NLC has contingency options in position to carry on funding very good leads to for nearly a 12 months In the event the lottery and also the sale of lottery tickets are suspended.

The contingency also addresses funding during the occasion of litigation by dropping bidders every time a new operator is lastly introduced, which could also derail The graceful functioning with the lottery.

Just in case ticket profits are stopped, the NLC will use its reserves of R3.9-billion to continue funding qualifying organisations, a resource with expertise in the contingency system advised GroundUp.

In his weekend statement asserting the postponement, Tau reported: “Unfortunately, I'm not ready to make a remaining final decision at this stage. Any these selection right now would in all good conscience imply that I haven't used my thoughts with thanks consideration of the many pertinent things.”

“I've identified matters that have to have additional evaluation. It could be inappropriate to reveal these concerns now and their disclosure could incredibly perfectly prejudice the right adjudication from the awarding of the licence.”

Tau mentioned he was awaiting suggestions on The simplest way to ensure the continuation of the lottery within the interim as well as the “improvement of a programme to finalise this method”.

This, he said, needs to be carried out just after consultation Using the Nationwide Treasury.”

Tau also hinted at the political makeup on the consortiums bidding for the licence as A different possible basis for the postponement.

He reported: “I need to also ensure that the homeowners and administrators from the profitable applicants are, as being the Act states, ‘healthy and good individuals’. On top of that, I need to make certain that no political get together or political Workplace-bearer has any direct money interest while in the applicant or a shareholder on the applicant.”

Enterprise Day described Beforehand that almost all of the companies shortlisted with the tender are politically uncovered.

The Gold Rush consortium is led by significant-profile businessperson Sandile Zungu, who challenged with the ANC KwaZulu-Natal chair situation in 2022 in advance of dropping out just after he did not garner adequate support, the paper reported.

A different politically connected bidder is HCI, which is vast majority-owned by the South African Garments and Textile Staff’ Union, an affiliate of Cosatu, which can be in alliance With all the ANC. CEO Johnny Copelyn donated to President Cyril Ramaphosa’s CR17 marketing campaign to the ANC presidency.

An additional shortlisted bidder, In keeping with Organization Working day, is Thebe Expenditure Company, which was Launched by ANC leaders in 1992. Thebe is 50 %-owned by Batho Batho Believe in. The rely on has donated R60-million on the ANC considering the fact that 2021, Based on declarations produced to the electoral Fee.

Ithuba, the holder on the licence, is also within the running, as is Umbulelo Consortium, led by Afrirent Holdings; and Giya Video games, In accordance with Business Working day.

Vivien Natasen consulted for Giya Game titles on its bid. GroundUp noted in 2022 that Natasen, byสลาก กิน รัฐบาล his firm Neo Remedies, contributed R2-million in direction of the luxury mansion of the then-NLC chair Aflred Nevhutanda — though his firm Neo Solutions had a deal Together with the NLC. Natasen told GroundUp at that time that Neo Alternatives was “appointed through the NLC’s provide chain processes, as and when products and services are needed”.

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