Parks Tau, the trade and industry minister, has postponed naming a successful bidder to operate South Africa’s lottery when the tenure of existing operator, Ithuba, ends in May perhaps following 12 months.

Ithuba’s licence was because of to get expired in May possibly 2023 but was extended for 2 a long time by Tau’s predecessor Ebrahim Patel following a request from the then freshly-appointed board on the National 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 seriously influenced from the Covid pandemic. This integrated a ban over the sale of lottery tickets at the height with the pandemic.

With regards to the extension, Ithuba experienced to make contributions to the NLC for distribution to excellent will cause at a higher amount than supplied for within their Preliminary licence.

New licence operators are offered 6 months to arrange infrastructure, such as ticket machines countrywide, to take over in the earlier operator before the incumbent’s licence finishes. This most up-to-date postponement means that there will not be sufficient time to get a clean changeover and It really is not likely that Tau will prolong Ithuba’s licence all over again.

The process of appointing a different licence operator has also been affected by allegations of conflict of fascination and also other difficulties.

GroundUp has discovered the NLC has contingency strategies in place to carry on funding great results in for up to a calendar year if the lottery and also the sale of lottery tickets are suspended.

The contingency also handles funding inside the event of litigation by getting rid of bidders each time a new operator is ultimately declared, which could also derail the smooth running of your lottery.

Just in case ticket product sales are stopped, the NLC will use its reserves of R3.nine-billion to continue funding qualifying organisations, a supply with understanding of the contingency approach informed GroundUp.

In his weekend statement saying the postponement, Tau claimed: “Sadly, I am not able to help make a final selection at this stage. Any these choice at the moment would in all fantastic conscience imply which i haven't utilized my brain with due consideration of all the applicable components.”

“I have identified issues that have to have further more analysis. It would be inappropriate to reveal these concerns now as well as their disclosure could incredibly effectively prejudice the right adjudication in the awarding of your licence.”

Tau explained he was awaiting guidance on The obvious way to make sure the continuation of the lottery in the interim along with the “advancement of a programme to finalise this process”.

This, he explained, should be completed soon after consultation Together with the Nationwide Treasury.”

Tau also hinted with the political makeup from the consortiums bidding with the licence as An additional achievable reason for the postponement.

He reported: “I have to also make sure the owners and managers on the prosperous applicants are, as the Act states, ‘healthy and correct people’. In addition, I must be sure that no political celebration or political Office environment-bearer has any immediate financial curiosity from the applicant or simply a shareholder from the applicant.”

Small business Working day claimed previously that almost all of the companies shortlisted for the tender are politically uncovered.

The Gold Rush consortium is led by high-profile businessperson Sandile Zungu, who challenged with the ANC KwaZulu-Natal chair situation in 2022 right before dropping out following he didn't garner ample assist, the paper described.

An additional politically related bidder is HCI, and that is greater part-owned from the South African Apparel and Textile Staff’ Union, an affiliate of Cosatu, which is in alliance Together with the ANC. CEO Johnny Copelyn donated to President Cyril Ramaphosa’s CR17 marketing campaign with the ANC presidency.

Another shortlisted bidder, In accordance with Small business Working day, is Thebe Investment Company, which was Launched by ANC leaders in 1992. Thebe is fifty percent-owned by Batho Batho Believe in. The trust has donated R60-million to your ANC because 2021, according to declarations built on the electoral Fee.

Ithuba, the holder on the licence, is also while in the functioning, as is Umbulelo Consortium, led by Afrirent Holdings; and Giya Games, In line with Business enterprise Day.

Vivien Natasen consulted for Giya Video games on its bid. GroundUp described in 2022 that Natasen, throughตรวจ หวย his firm Neo Options, contributed R2-million in direction of the posh mansion of your then-NLC chair Aflred Nevhutanda — while his business Neo Answers had a contract With all the NLC. Natasen informed GroundUp at that time that Neo Solutions was “appointed in the NLC’s source chain processes, as and when companies are essential”.