The department of trade, industry and competition (DTIC), which will ultimately make a decision on who gets awarded the lucrative but contentious national lottery licence, is playing its cards close to its chest on when a decision will be made.
This has caused panic among NGOs who rely heavily on disbursements from the National Lottery Commission (NLC) to do their work.
The finalisation of the adjudication process has already been delayed several times. Business Day understands DTIC minister Parks Tau is in a predicament as the NLC’s preferred bidder has close links to his party, the ANC, raising conflict of interest concerns.
His spokesperson, Yamkela Fanisi could not be drawn on when the decision on who will be awarded the fourth licence to operate the national lottery will be made.
“The minister [Parks Tau] will engage with the report by NLC and at the appropriate time will engage on the NLC matters,” Fanisi said.
City Press has reported ANC-linked Thebe Investments is the preferred bidder, followed by Goldrush, which also has ANC high-profile member and businessperson Sandile Zungu as a partner.
The current holder of the licence is Ithuba, whose licence expires in May. A successful bidder should be afforded at least six months ahead of then to establish technical and other infrastructure, including ticket machines, across the country, with City Press reporting there is a possibility the country might not have a national lottery for up to six months next year.
United Civil Society in Action (UCSA) said without urgent intervention the country risks being without a licensed lottery operator by June 2025 and thousands of organisations and their beneficiaries being left in dire straits.
“As UCSA, we are deeply concerned about the impending crisis facing SA’s civil society and the communities they serve due to the potential absence of a National Lottery operator in the next six months. Without urgent intervention, this gap threatens to undermine the essential grant funding mandate intended by the Lotteries Act, potentially leaving thousands of nonprofit organisations without the financial support needed to sustain critical services and programs across the country,” said UCSA’s chair, Tebogo Sithathu.
“The absence of a lottery operator would disrupt the allocation of essential grant funding earmarked for socioeconomic upliftment, development and public benefit, with severe consequences. Vulnerable communities — many of whom depend on civil society organisations for basic necessities, educational programmes, healthcare services and community development — stand to lose vital support.”
Besides, support for NGOs paid through the NLC, proceeds from lottery have also shored up the coffers of state entities. For example, Ithuba has paid over about R200m to the National Empowerment Fund and nearly R70m to the Post Office.
Business Day previously reported on an apparent conflict of interest of some of the bidders in the tender, making Tau’s job, who was appointed to the role when the process was well advanced, all the more difficult.
Zungu challenged for the ANC KwaZulu-Natal chair position in 2022 before dropping out after he failed to garner enough support.
Another bidder, Hosken Consolidated Investments is majority owned by the SA Clothing and Textile Workers’ Union, an affiliate of Cosatu, which is in alliance with the ANC. Its CEO, John Copelyn was one of the businesspeople who donated to President Cyril Ramaphosa’s CR17 campaign for the ANC presidency.
Thebe Investment Corporation, half owned by Batho Batho Trust, which, according to declarations made to the Electoral Commission SA, has donated R60m to the ANC since 2021.
Batho Batho Trust was founded by ANC leaders in 1992. Other bidders are the incumbent Ithuba, the Umbulelo Consortium, led by Afrirent Holdings; and Giya Games.
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.