Parks Tau, the trade and business minister, has postponed naming a successful bidder to operate South Africa’s lottery in the event the tenure of current operator, Ithuba, finishes in May perhaps next calendar year.
Ithuba’s licence was owing to possess expired in May perhaps 2023 but was extended for 2 several years by Tau’s predecessor Ebrahim Patel after a request by the then recently-appointed board of the Nationwide Lotteries Fee (NLC).
The Board, which was coping with the corruption that had confused the NLC, also advised Patel of representations by Ithuba that it had been severely impacted with the Covid pandemic. This bundled a ban on the sale of lottery tickets at the height in the pandemic.
Concerning the extension, Ithuba experienced to make contributions for the NLC for distribution to superior causes at a greater charge than offered for in their initial licence.
New licence operators are specified 6 months to arrange infrastructure, together with ticket equipment countrywide, to consider more than in the past operator before the incumbent’s licence ends. This most recent postponement means that there will not be enough time for any sleek changeover and It's not likely that Tau will increase Ithuba’s licence once again.
The whole process of appointing a fresh licence operator has also been stricken by allegations of conflict of desire together with other concerns.
GroundUp has acquired that the NLC has contingency strategies in position to continue funding excellent results in for as much as a year if the lottery and the sale of lottery tickets are suspended.
The contingency also handles funding inside the occasion of litigation by getting rid of bidders every time a new operator is last but not least declared, which could also derail The sleek running on the lottery.
In the event that ticket profits are stopped, the NLC will use its reserves of R3.nine-billion to carry on funding qualifying organisations, a source with familiarity with the contingency strategy informed GroundUp.
In his weekend statement announcing the postponement, Tau claimed: “Sadly, I am not in a position to produce a closing selection at this stage. Any this kind of choice at the moment would in all very good conscience necessarily mean which i haven't utilized my intellect with thanks thought of many of the relevant factors.”
“I've discovered matters that call for additional analysis. It would be inappropriate to reveal these troubles now and their disclosure could incredibly effectively prejudice the appropriate adjudication in the awarding of the licence.”
Tau claimed he was awaiting assistance on the best way to ensure the continuation in the lottery from the interim and the “growth of the programme to finalise this method”.
This, he reported, has to be performed after consultation Using the National Treasury.”
Tau also hinted within the political make-up on the consortiums bidding for the licence as A further attainable reason for the postponement.
He claimed: “I must also ensure that the house owners and managers on the successful applicants are, since the Act states, ‘healthy and correct individuals’. Moreover, I need to be certain that no political occasion or political Workplace-bearer has any direct economic curiosity inside the applicant or possibly a shareholder with the applicant.”
Small business Day noted previously that most of the businesses shortlisted for the tender are politically exposed.
The Gold Rush consortium is led by significant-profile businessperson Sandile Zungu, who challenged for your ANC KwaZulu-Natal chair position in 2022 in advance of dropping out right after he didn't garner ample support, the paper described.
Yet another politically linked bidder is HCI, which is greater part-owned by the South African Clothes and Textile Employees’ Union, an affiliate of Cosatu, which can be in alliance Together with the ANC. CEO Johnny Copelyn donated to President Cyril Ramaphosa’s CR17 campaign with the ANC presidency.
A further shortlisted bidder, In keeping with Small business Day, is Thebe Investment Corporation, which was founded by ANC leaders in 1992. Thebe is 50 percent-owned by Batho Batho Believe in. The belief has donated R60-million to your ANC considering that 2021, according to declarations manufactured into the electoral commission.
Ithuba, the holder from the licence, can be during the operating, as is Umbulelo Consortium, led by Afrirent Holdings; and Giya Video games, In accordance with Small business Day.
Vivien Natasen consulted for Giya Video games on its bid. GroundUp noted in 2022 that Natasen, by means oflottovip his company Neo Options, contributed R2-million in direction of the posh mansion in the then-NLC chair Aflred Nevhutanda — even though his firm Neo Remedies had a deal While using the NLC. Natasen explained to GroundUp at that time that Neo Options was “appointed in the NLC’s offer chain processes, as and when products and services are essential”.