Parks Tau, the trade and industry minister, has postponed naming a profitable 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 possess expired in Could 2023 but was extended for 2 years by Tau’s predecessor Ebrahim Patel following a ask for because of the then recently-appointed board on the Nationwide Lotteries Commission (NLC).

The Board, which was coping with the corruption that experienced overwhelmed the NLC, also advised Patel of representations by Ithuba that it were seriously impacted by the Covid pandemic. This involved a ban within the sale of lottery tickets at the peak from the pandemic.

In terms of the extension, Ithuba had to make contributions to your NLC for distribution to good triggers at an increased level than offered for inside their First licence.

New licence operators are specified 6 months to set up infrastructure, such as ticket machines countrywide, to take over within the former operator ahead of the incumbent’s licence ends. This newest postponement ensures that there will not be sufficient time for just a easy transition and It can be unlikely that Tau will increase Ithuba’s licence once more.

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

GroundUp has uncovered which the NLC has contingency designs in position to carry on funding excellent results in for as many as a year In case the lottery as well as the sale of lottery tickets are suspended.

The contingency also addresses funding during the party of litigation by losing bidders whenever a new operator is last but not least introduced, which could also derail The sleek functioning from the lottery.

In the event ticket revenue are stopped, the NLC will use its reserves of R3.9-billion to carry on funding qualifying organisations, a supply with expertise in the contingency strategy told GroundUp.

In his weekend statement asserting the postponement, Tau reported: “Sad to say, I am not able for making a ultimate decision at this time. Any these kinds of choice right now would in all superior conscience suggest which i haven't used my intellect with due thought of every one of the suitable factors.”

“I have identified matters that have to have further evaluation. It might be inappropriate to disclose these troubles now as well as their disclosure could incredibly well prejudice the proper adjudication of the awarding of the licence.”

Tau reported he was awaiting guidance on the best way to make sure the continuation in the lottery in the interim plus the “advancement of the programme to finalise this method”.

This, he explained, must be accomplished just after session Together with the Countrywide Treasury.”

Tau also hinted on the political make-up of your consortiums bidding to the licence as A different possible reason behind the postponement.

He said: “I need to also ensure that the entrepreneurs and supervisors on the prosperous applicants are, as being the Act states, ‘in shape and correct people’. Furthermore, I need to make certain that no political party or political Business-bearer has any direct economical curiosity from the applicant or a shareholder on the applicant.”

Business Working day noted Formerly that the majority of the businesses shortlisted for your tender are politically exposed.

The Gold Rush consortium is led by higher-profile businessperson Sandile Zungu, who challenged for the ANC KwaZulu-Natal chair position in 2022 ahead of dropping out immediately after he didn't garner sufficient support, the paper reported.

Another politically linked bidder is HCI, that's the greater part-owned via the South African Outfits and Textile Employees’ Union, an affiliate of Cosatu, which can be in alliance with the ANC. CEO Johnny Copelyn donated to President Cyril Ramaphosa’s CR17 marketing campaign for the ANC presidency.

A different shortlisted bidder, In line with Company Day, is Thebe Investment Corporation, which was Established by ANC leaders in 1992. Thebe is 50 %-owned by Batho Batho Have confidence in. The rely on has donated R60-million on the ANC considering the fact that 2021, according to declarations made for the electoral Fee.

Ithuba, the holder of your licence, can also be within the operating, as is Umbulelo Consortium, led by Afrirent Holdings; and Giya Games, As outlined by Enterprise Working day.

Vivien Natasen consulted for Giya Video games on its bid. GroundUp claimed in 2022 that Natasen, by way ofหวย หุ้น his company Neo Alternatives, contributed R2-million in direction of the luxurious mansion in the then-NLC chair Aflred Nevhutanda — though his organization Neo Alternatives had a contract Along with the NLC. Natasen told GroundUp at that time that Neo Remedies was “appointed in the NLC’s supply chain processes, as and when solutions are necessary”.

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