Parks Tau, the trade and marketplace minister, has postponed naming a winning bidder to run South Africa’s lottery in the event the tenure of present operator, Ithuba, ends in May well next year.

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

The Board, which was managing the corruption that experienced overcome the NLC, also advised Patel of representations by Ithuba that it had been seriously affected via the Covid pandemic. This incorporated a ban on the sale of lottery tickets at the height on the pandemic.

With regards to the extension, Ithuba experienced to make contributions towards the NLC for distribution to very good results in at a higher price than presented for inside their First licence.

New licence operators are supplied 6 months to put in place infrastructure, like ticket devices countrywide, to get above in the prior operator ahead of the incumbent’s licence ends. This newest postponement ensures that there will not be ample time for your easy changeover and It's not likely that Tau will extend Ithuba’s licence yet again.

The process of appointing a different licence operator has also been suffering from allegations of conflict of fascination as well as other troubles.

GroundUp has acquired that the NLC has contingency ideas in position to continue funding very good will cause for as many as a 12 months Should the lottery and the sale of lottery tickets are suspended.

The contingency also handles funding during the celebration of litigation by shedding bidders each time a new operator is lastly declared, which could also derail The sleek operating of your lottery.

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

In his weekend statement saying the postponement, Tau reported: “Regrettably, I am not able to help make a last determination at this time. Any these types of choice at the moment would in all excellent conscience indicate that I have not applied my mind with thanks thing to consider of many of the applicable components.”

“I have identified issues that call for more evaluation. It could be inappropriate to disclose these challenges now and their disclosure could very properly prejudice the proper adjudication with the awarding from the licence.”

Tau claimed he was awaiting guidance on the best way to ensure the continuation on the lottery in the interim as well as the “progress of the programme to finalise this method”.

This, he reported, needs to be done right after consultation Using the National Treasury.”

Tau also hinted at the political make-up on the consortiums bidding to the licence as Yet another feasible reason behind the postponement.

He claimed: “I must also make sure that the house owners and professionals of your profitable applicants are, as the Act states, ‘in shape and proper individuals’. On top of that, I must be certain that no political bash or political Place of work-bearer has any direct fiscal fascination during the applicant or a shareholder of the applicant.”

Company Day reported Beforehand that most of the businesses shortlisted to the tender are politically exposed.

The Gold Hurry consortium is led by substantial-profile businessperson Sandile Zungu, who challenged for your ANC KwaZulu-Natal chair position in 2022 right before dropping out immediately after he failed to garner plenty of help, the paper reported.

One more politically related bidder is HCI, that's majority-owned with the South African Outfits and Textile Workers’ Union, an affiliate of Cosatu, which can be in alliance While using the ANC. CEO Johnny Copelyn donated to President Cyril Ramaphosa’s CR17 marketing campaign for the ANC presidency.

An additional shortlisted bidder, In line with Small business Day, is Thebe Financial commitment Corporation, which was founded by ANC leaders in 1992. Thebe is half-owned by Batho Batho Belief. The belief has donated R60-million on the ANC considering that 2021, In accordance with declarations made to your electoral commission.

Ithuba, the holder with the licence, is additionally in the managing, as is Umbulelo Consortium, led by Afrirent Holdings; and Giya Game titles, In line with Business enterprise Day.

Vivien Natasen consulted for Giya Video games on its bid. GroundUp documented in 2022 that Natasen, as a result ofหวย ไทยรัฐ his business Neo Solutions, contributed R2-million to the posh mansion of your then-NLC chair Aflred Nevhutanda — even though his business Neo Remedies experienced a contract With all the NLC. Natasen advised GroundUp At the moment that Neo Answers was “appointed in the NLC’s source chain processes, as and when expert services are needed”.

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