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May 18, 2007 |
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| Out for the count? | |||
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The suspension of the South Africa
National Lottery will likely carry through the month of June,
according to local reports. National Lottery activity was originally
halted on April 1, the day before new lotto operator Gidani was due
to take over the reins from incumbent operator Uthingo.
The 30-day suspension, ordered by Trade Minister Mandisi Mphalwa, followed a High Court decision setting aside the Trade Minister’s decision to award the new lottery operator license to Gidani. Uthingo had gone to court to force the Minister to reverse his decision amid allegations of senior politicians’ involvement in the new lotto consortium. In court it emerged that Uthingo also had a number of senior political office bearers involved in its affairs, and the judiciary ruled that the licensing process was flawed and should be reviewed in terms of the National Lotteries Act. Attempts to get the National Lottery up and operating while this issue is being resolved have run into numerous obstacles. An interim solution such as a short-term extension of Uthingo’s license had not been possible in terms of the National Lotteries Act, and lotto retailers’ contracts with the incumbent operator have expired. A short-term renewal of these contracts was also not an option. Meanwhile, it was determined that the best was to resolve this crisis was to have the National Lotteries Board reviews the license award process and conducts probity investigations afresh. With the 30-day deadline having come and gone, the National Lotteries Board applied to government for an extension of the time allotted in which to review the licensing process and indications are that the lotto will be suspended till the end of June at the earliest. The Department of Trade and Industry has stated that the Lotteries Board requires more time in which to conduct investigations into the various stakeholders in each of the consortia comprising the four preferred bidders. Whatever the outcome of the new process, whether an about turn from government on the awarding of the license to Gidani by re-instating Uthingo or an affirmation that Gidani is in fact the first choice to run the National Lottery, government will surely face more legal wrangles in the form of compensation claims from losing bidders. In the interim, retail outlets across the country are housing lotto terminals from both companies while they await the final outcome of the process. —Roy Bannister |
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