Tau postponed decision to award 4th National Lottery Licence 


By REGINALD KANYANE

23 December 2024 – The Portfolio Committee on Trade, Industry and Competition said it has noted the Minister Parks Tau’s status update on the process to award the 4th National Lottery licence.

The Chairperson of the Committee, Mzwandile Masina, welcomed Tau’s decision to further interrogate the bids without compromising the credibility of the licensing process as directed by the Lotteries Act 57 of 1997. Masina said the committee fully supports the Minister’s statement that further work will be done to ensure the credibility of this process, which has come under public scrutiny in the recent past.

“We implore Tau to consider various options, if awarding the new lottery licence becomes impractical before the expiry of the 3rd Lottery licence on 31 May 2025.

“Such options could include exploring Section 13B in the Lotteries Act that deals with issuing a temporary licence and/or considering the option of a ‘State led’ the Lottery in terms of Section 13A of the Act amongst others,” he said.

Masina further said he shared Tau’s views that the running of the National Lottery is complex and that many vulnerable people and important organisations depend on it. He added that this makes due diligence more necessary.

“The Minister announced the postponement of his decision regarding the awarding of the licence on Saturday. The committee acknowledges his commitment to fulfil his responsibility in respect of the law when it came to ensuring a fair, equitable, transparent, competitive and cost-effective adjudication process.

“Tau announced that an applicant needed to demonstrate the necessary commitment to a social responsibility programme and the advancement of the historically disadvantaged,” said Masina.

He said the committee wishes to caution that whenever the final decision is made, sufficient time for hand-over must be provided to allow setup, testing and other technical work. Masina said, furthermore, any work by the ministry should minimise or limit the period, where there may not be an active operator as this would disrupt and impact negatively on good causes.

“The committee welcomes the Minister’s recognition that he has a duty to ensure that no political party or political office-bearer has any direct financial interest in the applicant or a shareholder of the applicant, which is an important aspect when considering the awarding of the National Lottery licence.

“Finally, the committee commends the Minister for acting cautiously and applying his mind on the matter. We have full confidence that the observations and input given during the Portfolio Committee’s meetings will also be taken into account without meddling in the process, especially as it relates to ‘conflict of interests’ as sharply raised on numerous occasions,” he said.

taungdailynews@gmail.com