Parks Tau, the trade and industry minister, has postponed naming a successful bidder to operate South Africa’s lottery in the event the tenure of present operator, Ithuba, ends in Could next yr.

Ithuba’s licence was because of to have expired in May 2023 but was prolonged for two a long time by Tau’s predecessor Ebrahim Patel following a request with the then newly-appointed board of your Nationwide Lotteries Fee (NLC).

The Board, which was handling the corruption that had overcome the NLC, also encouraged Patel of representations by Ithuba that it were severely affected with the Covid pandemic. This included a ban about the sale of lottery tickets at the height on the pandemic.

With regards to the extension, Ithuba had to generate contributions to your NLC for distribution to superior causes at a higher rate than offered for within their initial licence.

New licence operators are given 6 months to put in place infrastructure, like ticket devices countrywide, to just take in excess of through the past operator ahead of the incumbent’s licence ends. This latest postponement means that there won't be sufficient time for just a easy changeover and It's unlikely that Tau will prolong Ithuba’s licence again.

The whole process of appointing a whole new licence operator has also been plagued by allegations of conflict of fascination and also other challenges.

GroundUp has learned that the NLC has contingency strategies in position to carry on funding superior leads to for around a yr In the event the lottery along with the sale of lottery tickets are suspended.

The contingency also covers funding during the function of litigation by losing bidders any time a new operator is last but not least introduced, which could also derail the smooth functioning on the lottery.

In the event ticket gross sales are stopped, the NLC will use its reserves of R3.nine-billion to continue funding qualifying organisations, a supply with knowledge of the contingency program told GroundUp.

In his weekend statement announcing the postponement, Tau mentioned: “However, I'm not able to make a last final decision at this time. Any such selection at the moment would in all great conscience imply which i have not applied my mind with thanks thought of all of the relevant components.”

“I have determined issues that call for further evaluation. It could be inappropriate to disclose these troubles now as well as their disclosure could really perfectly prejudice the proper adjudication in the awarding with the licence.”

Tau said he was awaiting tips on The easiest way to make sure the continuation of your lottery in the interim and also the “growth of a programme to finalise this process”.

This, he mentioned, has to be performed just after session While using the Countrywide Treasury.”

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

He said: “I have to also make sure that the house owners and managers on the effective applicants are, since the Act states, ‘fit and right folks’. In addition, I must make certain that no political bash or political Workplace-bearer has any immediate financial desire during the applicant or a shareholder in the applicant.”

Organization Day reported Beforehand that the majority of of the companies shortlisted for the tender are politically uncovered.

The Gold Rush consortium is led by superior-profile businessperson Sandile Zungu, who challenged to the ANC KwaZulu-Natal chair position in 2022 right before dropping out soon after he didn't garner enough assist, the paper claimed.

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

A different shortlisted bidder, As outlined by Business enterprise Working day, is Thebe Financial investment Corporation, which was founded by ANC leaders in 1992. Thebe is 50 %-owned by Batho Batho Belief. The belief has donated R60-million on the ANC given that 2021, according to declarations manufactured towards the electoral commission.

Ithuba, the holder of your licence, is additionally during the working, as is Umbulelo Consortium, led by Afrirent Holdings; and Giya Online games, according to Small business Working day.

Vivien Natasen consulted for Giya Online games on its bid. GroundUp described in 2022 that Natasen, as a result ofตรวจ หวย ลาว his corporation Neo Solutions, contributed R2-million in direction of the posh mansion on the then-NLC chair Aflred Nevhutanda — though his company Neo Options experienced a deal While using the NLC. Natasen told GroundUp At the moment that Neo Remedies was “appointed throughout the NLC’s supply chain procedures, as and when expert services are expected”.