The licence to operate the national lottery has been awarded to Gidani, Minister of Trade and Industry Mandisi Mpahlwa announced on Wednesday.
Mpahlwa told journalists in Pretoria — at a briefing beamed to Parliament in Cape Town — that it had a significant black economic empowerment component and government was a 20% shareholder.
Gidani was announced as the preferred bidder in July this year after an evaluation process conducted by the National Lotteries Board.
Apparently responding to criticism that high profile African National Congress (ANC) members had interests in Gidani, Mpahlwa said he was satisfied that Gidani met the provision in the Lotteries Act providing that no political party or political office bearer may have “any direct financial interest in the licensee”.
The Sunday Times reported last month that ANC national executive committee members Cyril Ramaphosa, Max Sisulu and Chris Nissen — former ANC leader in the Western Cape — were key players in Gidani.
Mpahlwa said the licence would allow Gidani to conduct all lotteries covered by the Lotteries Act — the Lotto, Lotto Plus, Sportstake and Scratchcards — and it also provides that there will be no interruption or significant changes in current games and winners will be able to claim all prizes as before.
Gidani is led by JHI Real Estate managing director Bongani Khumalo.
Mpahlwa thanked the current licensee, Uthingo, and its staff for the manner in which they conducted the national lottery during the first licence period. That period ends in April 2007. He noted that the lottery had since its inception in March 2000 contributed R6,3-billion to the national lottery Distribution Trust Fund for good causes, “of which R4,8-billion has been allocated to more than 9 000 NGOs across South Africa”.
“There have also been almost 300-million winners in the various lottery games and categories and these winners have shared approximately R13-billion in prize money,” he said.
Mpahlwa said in determining the preferred bidder — and subsequent licensee — consideration had been given to maximising of revenue for good causes, maintaining the integrity of the national lottery, player protection as well as the advancement of persons “disadvantaged by unfair discrimination”. — I-Net Bridge