Parks Tau, the trade and field minister, has postponed naming a winning bidder to run South Africa’s lottery if the tenure of latest operator, Ithuba, ends in Could up coming yr.

Ithuba’s licence was due to obtain expired in May well 2023 but was extended for 2 several years by Tau’s predecessor Ebrahim Patel following a request by the then recently-appointed board of the National Lotteries Fee (NLC).

The Board, which was coping with the corruption that had overcome the NLC, also recommended Patel of representations by Ithuba that it were seriously afflicted by 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 experienced for making contributions to your NLC for distribution to good triggers at a better fee than presented for within their initial licence.

New licence operators are given six months to setup infrastructure, including ticket devices countrywide, to take in excess of in the previous operator prior to the incumbent’s licence finishes. This most recent postponement ensures that there will not be adequate time for your sleek changeover and It really is unlikely that Tau will lengthen Ithuba’s licence once again.

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

GroundUp has realized that the NLC has contingency plans set up to continue funding great causes for as many as a yr if the lottery as well as 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 announced, which could also derail the smooth managing of your lottery.

In case ticket income are stopped, the NLC will use its reserves of R3.nine-billion to carry on funding qualifying organisations, a supply with familiarity with the contingency approach told GroundUp.

In his weekend assertion asserting the postponement, Tau reported: “Unfortunately, I'm not able for making a closing determination at this stage. Any this kind of choice presently would in all fantastic conscience indicate that I haven't applied my intellect with because of consideration of many of the appropriate elements.”

“I've recognized issues that demand further evaluation. It could be inappropriate to reveal these concerns now as well as their disclosure could very effectively prejudice the right adjudication of your awarding of the licence.”

Tau stated he was awaiting tips on The easiest method to ensure the continuation in the lottery from the interim and the “development of the programme to finalise this method”.

This, he explained, have to be accomplished soon after consultation Using the Countrywide Treasury.”

Tau also hinted with the political makeup with the consortiums bidding for your licence as A further attainable reason for the postponement.

He explained: “I need to also make certain that the entrepreneurs and managers on the thriving applicants are, as the Act states, ‘in shape and good folks’. Additionally, I must make certain that no political social gathering or political Office environment-bearer has any direct economic interest within the applicant or perhaps a shareholder of your applicant.”

Business enterprise Working day reported Earlier that a lot of of the companies shortlisted for that tender are politically exposed.

The Gold Rush consortium is led by high-profile businessperson Sandile Zungu, who challenged to the ANC KwaZulu-Natal chair position in 2022 ahead of dropping out after he did not garner more than enough assist, the paper claimed.

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

An additional shortlisted bidder, Based on Business Working day, is Thebe Expenditure Corporation, which was Launched by ANC leaders in 1992. Thebe is 50 %-owned by Batho Batho Have faith in. The have faith in has donated R60-million to the ANC due to the fact 2021, In accordance with declarations designed to the electoral commission.

Ithuba, the holder from the licence, can be from the functioning, as is Umbulelo Consortium, led by Afrirent Holdings; and Giya Game titles, according to Company Working day.

Vivien Natasen consulted for Giya Game titles on its bid. GroundUp described in 2022 that Natasen, byfox888 his enterprise Neo Options, contributed R2-million in direction of the posh mansion in the then-NLC chair Aflred Nevhutanda — although his organization Neo Answers had a deal While using the NLC. Natasen instructed GroundUp at that time that Neo Solutions was “appointed in the NLC’s provide chain procedures, as and when solutions are demanded”.