Parks Tau, the trade and field minister, has postponed naming a profitable bidder to operate South Africa’s lottery if the tenure of recent operator, Ithuba, ends in May perhaps upcoming yr.

Ithuba’s licence was thanks to get expired in May 2023 but was extended for 2 many years by Tau’s predecessor Ebrahim Patel after a ask for through the then recently-appointed board of your National Lotteries Commission (NLC).

The Board, which was addressing the corruption that had overwhelmed the NLC, also advised Patel of representations by Ithuba that it had been severely affected from the Covid pandemic. This incorporated a ban about the sale of lottery tickets at the height in the pandemic.

With regard to the extension, Ithuba had to generate contributions for the NLC for distribution to excellent leads to at a higher level than furnished for within their Original licence.

New licence operators are presented 6 months to put in place infrastructure, such as ticket devices countrywide, to take about in the preceding operator ahead of the incumbent’s licence ends. This most recent postponement signifies that there won't be sufficient time to get a easy transition and It truly is not likely that Tau will prolong Ithuba’s licence yet again.

The whole process of appointing a completely new licence operator has also been plagued by allegations of conflict of desire as well as other problems.

GroundUp has learned which the NLC has contingency options in place to carry on funding very good triggers for up to a 12 months When the lottery and the sale of lottery tickets are suspended.

The contingency also addresses funding during the function of litigation by getting rid of bidders whenever a new operator is eventually declared, which could also derail the smooth working with the lottery.

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

In his weekend statement announcing the postponement, Tau stated: “Sadly, I'm not ready to generate a ultimate determination at this stage. Any such conclusion right now would in all great conscience necessarily mean that I haven't applied my head with due thought of all the appropriate factors.”

“I have determined issues that need even more analysis. It will be inappropriate to reveal these problems now and their disclosure could quite very well prejudice the appropriate adjudication of your awarding of your licence.”

Tau said he was awaiting guidance on The obvious way to ensure the continuation from the lottery within the interim and also the “development of the programme to finalise this process”.

This, he claimed, have to be carried out after consultation Using the Nationwide Treasury.”

Tau also hinted at the political makeup with the consortiums bidding for your licence as A different feasible basis for the postponement.

He reported: “I must also make certain that the house owners and administrators of your successful applicants are, because the Act states, ‘suit and appropriate individuals’. Furthermore, I must make sure that no political celebration or political Workplace-bearer has any immediate fiscal interest during the applicant or maybe a shareholder in the applicant.”

Company Working day reported Earlier that the majority of the companies shortlisted with the tender are politically exposed.

The Gold Rush consortium is led by significant-profile businessperson Sandile Zungu, who challenged for the ANC KwaZulu-Natal chair place in 2022 in advance of dropping out after he failed to garner adequate assist, the paper described.

A different politically related bidder is HCI, which happens to be majority-owned by the South African Outfits and Textile Personnel’ Union, an affiliate of Cosatu, and that is in alliance Along with the ANC. CEO Johnny Copelyn donated to President Cyril Ramaphosa’s CR17 campaign with the ANC presidency.

A different shortlisted bidder, In line with Enterprise Working day, is Thebe Expenditure Company, which was founded by ANC leaders in 1992. Thebe is 50 percent-owned by Batho Batho Trust. The have faith in has donated R60-million to the ANC considering that 2021, In keeping with declarations produced on the electoral commission.

Ithuba, the holder on the licence, is usually during the running, as is Umbulelo Consortium, led by Afrirent Holdings; and Giya Games, according to Company Working day.

Vivien Natasen consulted for Giya Online games on its bid. GroundUp noted in 2022 that Natasen, viaตรวจ ล้อ ต เต อ รี่ his company Neo Options, contributed R2-million toward the posh mansion with the then-NLC chair Aflred Nevhutanda — when his enterprise Neo Methods experienced a deal While using the NLC. Natasen explained to GroundUp At the moment that Neo Remedies was “appointed with the NLC’s supply chain procedures, as and when companies are needed”.