ANNOUNCEMENT OF LATEST LOTTERY LICENCE OPERATOR POSTPONED - ONCE AGAIN

Announcement of latest lottery licence operator postponed - once again

Announcement of latest lottery licence operator postponed - once again

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Parks Tau, the trade and business minister, has postponed naming a winning bidder to run South Africa’s lottery if the tenure of recent operator, Ithuba, ends in Might subsequent calendar year.

Ithuba’s licence was owing to get expired in Might 2023 but was prolonged for two years by Tau’s predecessor Ebrahim Patel following a request via the then newly-appointed board with the National Lotteries Commission (NLC).

The Board, which was addressing the corruption that experienced overwhelmed the NLC, also advised Patel of representations by Ithuba that it had been severely affected with the Covid pandemic. This involved a ban over the sale of lottery tickets at the peak of the pandemic.

Regarding the extension, Ithuba experienced for making contributions into the NLC for distribution to superior results in at an increased amount than furnished for within their initial licence.

New licence operators are specified six months to set up infrastructure, together with ticket devices countrywide, to take in excess of in the past operator before the incumbent’s licence ends. This hottest postponement implies that there will not be enough time for just a smooth transition and It truly is not likely that Tau will increase Ithuba’s licence again.

The process of appointing a whole new licence operator has also been plagued by allegations of conflict of interest along with other troubles.

GroundUp has uncovered that the NLC has contingency ideas set up to carry on funding superior will cause for approximately a year if the lottery as well as sale of lottery tickets are suspended.

The contingency also addresses funding in the celebration of litigation by losing bidders every time a new operator is lastly introduced, which could also derail The graceful working of the lottery.

Just in case ticket revenue are stopped, the NLC will use its reserves of R3.9-billion to continue funding qualifying organisations, a supply with expertise in the contingency plan informed GroundUp.

In his weekend statement announcing the postponement, Tau stated: “Sadly, I am not ready to help make a last determination at this time. Any such final decision at this time would in all fantastic conscience signify which i have not used my mind with due thing to consider of many of the applicable elements.”

“I've recognized issues that need further more evaluation. It could be inappropriate to reveal these concerns now as well as their disclosure could very very well prejudice the proper adjudication in the awarding with the licence.”

Tau stated he was awaiting suggestions on The easiest method to ensure the continuation in the lottery while in the interim as well as “enhancement of the programme to finalise this process”.

This, he mentioned, should be done after consultation With all the Countrywide Treasury.”

Tau also hinted with the political make-up in the consortiums bidding for the licence as A different feasible cause for the postponement.

He said: “I must also be sure that the owners and supervisors of your productive applicants are, given that the Act states, ‘match and right folks’. In addition, I need to make sure that no political celebration or political Place of work-bearer has any direct monetary desire during the applicant or a shareholder from the applicant.”

Enterprise Working day described Earlier that almost all of the businesses shortlisted for your tender are politically uncovered.

The Gold Hurry consortium is led by large-profile businessperson Sandile Zungu, who challenged to the ANC KwaZulu-Natal chair place in 2022 just before dropping out right after he didn't garner sufficient guidance, the paper reported.

Yet another politically linked bidder is HCI, and that is majority-owned through 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 to the ANC presidency.

One more shortlisted bidder, As outlined by Business enterprise Working day, is Thebe Financial commitment Corporation, which was founded by ANC leaders in 1992. Thebe is 50 %-owned by Batho Batho Rely on. The belief has donated R60-million to the ANC since 2021, In keeping with declarations manufactured to the electoral commission.

Ithuba, the holder of your licence, can be in the working, as is Umbulelo Consortium, led by Afrirent Holdings; and Giya Online games, In keeping with Organization Day.

Vivien Natasen consulted for Giya Online games on its bid. GroundUp described in 2022 that Natasen, throughหวย ลาว วัน นี้ his corporation Neo Solutions, contributed R2-million in direction of the posh mansion with the then-NLC chair Aflred Nevhutanda — when his company Neo Solutions experienced a agreement Along with the NLC. Natasen instructed GroundUp At the moment that Neo Answers was “appointed through the NLC’s source chain processes, as and when solutions are demanded”.

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