Parks Tau, the trade and market minister, has postponed naming a profitable bidder to run South Africa’s lottery if the tenure of present-day operator, Ithuba, finishes in May possibly future calendar year.

Ithuba’s licence was thanks to have expired in May 2023 but was prolonged for 2 several years by Tau’s predecessor Ebrahim Patel after a ask for by the then freshly-appointed board on the National Lotteries Fee (NLC).

The Board, which was working with the corruption that had confused the NLC, also suggested Patel of representations by Ithuba that it were severely influenced from the Covid pandemic. This bundled a ban within the sale of lottery tickets at the peak from the pandemic.

Concerning the extension, Ithuba had for making contributions for the NLC for distribution to great triggers at the next charge than delivered for within their First licence.

New licence operators are specified 6 months to create infrastructure, such as ticket machines countrywide, to consider above with the former operator ahead of the incumbent’s licence finishes. This latest postponement means that there will not be adequate time for the clean transition and It is actually not likely that Tau will lengthen Ithuba’s licence once again.

The process of appointing a different licence operator has also been tormented by allegations of conflict of interest as well as other issues.

GroundUp has figured out that the NLC has contingency strategies set up to continue funding fantastic triggers for up to a yr Should the lottery as well as sale of lottery tickets are suspended.

The contingency also covers funding while in the celebration of litigation by losing bidders any time a new operator is lastly introduced, which could also derail The sleek running with the lottery.

In the event ticket profits are stopped, the NLC will use its reserves of R3.9-billion to continue funding qualifying organisations, a source with understanding of the contingency strategy explained to GroundUp.

In his weekend assertion asserting the postponement, Tau reported: “Regretably, I am not ready for making a last choice at this time. Any this sort of conclusion at the moment would in all fantastic conscience imply that I have not utilized my head with thanks thing to consider of every one of the relevant variables.”

“I've discovered matters that call for additional evaluation. It would be inappropriate to reveal these problems now and their disclosure could extremely properly prejudice the right adjudication on the awarding in the licence.”

Tau mentioned he was awaiting suggestions on the best way to make sure the continuation from the lottery in the interim plus the “growth of the programme to finalise this process”.

This, he claimed, have to be carried out after session With all the Countrywide Treasury.”

Tau also hinted in the political makeup on the consortiums bidding for that licence as another feasible cause of the postponement.

He explained: “I must also make certain that the homeowners and professionals from the successful applicants are, as the Act states, ‘healthy and good people’. Additionally, I need to be certain that no political party or political Office environment-bearer has any immediate financial curiosity while in the applicant or simply a shareholder of the applicant.”

Company Day reported previously that the majority of the businesses shortlisted with the tender are politically exposed.

The Gold Rush consortium is led by high-profile businessperson Sandile Zungu, who challenged with the ANC KwaZulu-Natal chair placement in 2022 just before dropping out following he didn't garner plenty of help, the paper reported.

One more politically connected bidder is HCI, which happens to be the vast majority-owned with the South African Outfits and Textile Employees’ Union, an affiliate of Cosatu, which happens to be in alliance With all the ANC. CEO Johnny Copelyn donated to President Cyril Ramaphosa’s CR17 marketing campaign for that ANC presidency.

Another shortlisted bidder, In accordance with Organization Day, is Thebe Financial investment Company, which was Launched by ANC leaders in 1992. Thebe is fifty percent-owned by Batho Batho Have confidence in. The have confidence in has donated R60-million towards the ANC because 2021, according to declarations built on the electoral Fee.

Ithuba, the holder with the licence, can be in the jogging, as is Umbulelo Consortium, led by Afrirent Holdings; and Giya Games, In line with Business Day.

Vivien Natasen consulted for Giya Video games on its bid. GroundUp described in 2022 that Natasen, throughhihuay his business Neo Methods, contributed R2-million in direction of the luxurious mansion from the then-NLC chair Aflred Nevhutanda — when his company Neo Remedies experienced a deal with the NLC. Natasen informed GroundUp at that time that Neo Remedies was “appointed in the NLC’s source chain procedures, as and when services are required”.

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