The date to solve the limbo around South Africa’s lottery operator has been set by Minister Parks Tau.
Tau will be announcing the winning bidder for a temporary national lottery licence on 28 May.
Described by the Minister for Trade, Industry and Competition as a “contingency measure”, the temporary licence will appoint a careholder operator for the next 12 months to ensure lottery operations remain functional until the full eight-year rights are granted in 2026.
The process however has been embroiled in controversy, with Tau accused of serving the interests of Ithuba, the current licence holder, whose licence expires on 31 May.
The Minister maintains that he remains distanced from all bidders equally. He said: “If I am unable to conclude a satisfactory licence agreement by 31 May, then it will be necessary to either extend the bid validity period or cancel the process and begin anew. I would prefer to avoid the latter.”
However, some have suspected political meddling by Ithuba’s private affairs. For one, fellow bidder Wina Njalo has argued that the whole licence process has been predetermined from the start, as only Ithuba has the necessary capacity and facilities to operate the lottery at a short notice.
The company has even created a court bid seeking direct legal intervention to force Tau into giving up the temporary licence and announce a winner for the full licence instead. This will be decided between 5-6 May in the Pretoria High Court.
Tau is supposedly being advised on the issuing of a temporary licence by South Africa’s National Lotteries Commission (NLC). Barney Pityana, NLC Board Chair, stated that the Commission had expected four applications but had received eight, complicating the process.
In 2023, the NLC on its own accord defended Ithuba’s drop in earnings. The operator’s licence, which has been running since 2015, was later extended.
There have also been investigations into top Commission figureheads regarding reports of money laundering and corruption.
Tau concluded: “In the past, serious allegations of corruption were made in respect of the National Lotteries Commission and the way the lottery was managed. These considerations prompted me to take a very cautious approach.
“It is a matter of public record that the award of previous licences was fraught with allegations of corruption and illegality. I fully understand my obligation to furnish reasons for my decision and will do so in due course, after I have announced the winning bid.
“All will be revealed in good time, when it cannot influence the decision-making process.”