Uthingo’s contract as the national lottery operator expires within five days, but South African Trade and Industry Minister Mandisi Mpahlwa “still seems to have no idea” how to lead his department out of the quagmire following the Pretoria High Court’s reversal of his decision to award the licence to the Gidani consortium, the official opposition said on Tuesday.
Democratic Alliance trade and industry spokesperson Pierre Rabie said his party believed that given the complexities involved and the short period of time left until the expiration of Uthingo’s licence at the end of the month, “the minister should extend Uthingo’s operating licence for an interim period of sufficient length to allow for a viable, long-term solution to be found”.
Rabie said statements by director general Tshediso Matona seemed to indicate that all the scurrying behind the scenes was directed mostly at ensuring that there would be no vacuum in the running of the lotto come April 1.
“This, however, will not guarantee the long-term stability and efficient running of the R40-million national lottery business.”
Rabie said Matona’s disturbing indication that either operator — Gidani or Uthingo — would have their machines ready on the commencement of the new operating term “begs the question whether the minister, true to the media speculation that has flourished in his silence, will re-appoint Gidani, despite the ruling by Judge Willie Seriti?”
Rabie said that should the minister choose that route, “he will clearly lay the department bare to further legal challenges, possibly paralysing the lottery operation”.
“For one, Gidani has been obstinate in public about changing its shareholding in any way whatsoever, implying that African National Congress political office bearers Max Sisulu and Chris Nissen will remain in the fold come what may. Its re-appointment would therefore immediately invite legal action from Uthingo.”
“In addition, Igwija, the bidder who came third, has also expressed its intention to mount a legal challenge to the department in light of the Pretoria High Court’s ruling.
“The unprecedented mess that followed Judge Seriti’s decision results directly from Minister Mpahlwa’s neglect of his duties and the stubbornly dysfunctional National Lotteries Board’s inefficiency.” — I-Net Bridge