The Congress of South African Trade Unions’ (Cosatu) involvement in the new national lottery operator, Gidani, has come under fire from Independent Democrats (ID) chief whip Avril Harding in Parliament.
In a member’s statement to the National Assembly, Harding said despite its strong objections to the lottery, Cosatu has emerged as one of the major shareholders in Gidani, the consortium recently awarded the licence to operate the national lottery.
Gidani takes over the reins — from Uthingo — next April.
Harding noted that in 2003, Cosatu made a submission to Parliament objecting to the introduction of the National Gambling Bill, saying it would have negative consequences on the quality of life of the most vulnerable.
Cosatu, through its investment arm Kopano ke Matla, now held 13,5% of Gidani.
Harding noted that in its 2003 parliamentary submission, Cosatu quoted research that found that about 50% of adults in urban areas buy lottery tickets, 40% of them earning between R800 and R4Â 000 a month.
“The research found that some players were addicted to gambling and that most who spent more than R625 a month on the Lotto were single African men earning less than R4Â 000 a month,” noted Harding.
Cosatu said it believed the lottery encouraged “gamblers to think they can only change their lives through luck, rather than helping us collectively solve the challenges we face”, Harding reported.
He noted that Cosatu general secretary Zwelinzima Vavi said there was a “policy vacuum” on the lottery and his view was that the lottery was immoral and a second tax on the poor.
Cosatu at one stage even went so far as to accuse the lottery of establishing “a zama-zama mentality”, charged Harding.
“The workers of Uthingo recently approached the Independent Democrats for assistance as they will soon be unemployed because their company lost the bid and, guess what … these employees are members of South African Commercial, Catering and Allied Workers’ Union, a Cosatu affiliate.”
Harding noted that “Cosatu failed to ensure that the jobs of its affiliate’s members are protected in their acquisition deal”.
“The ID calls on Cosatu to stop its zama-zama and Zuma-Zuma mentality and give proper leadership to the workers they represent.” — I-Net Bridge