There will be no lottery for at least a month, Trade and Industry Minister Mandisi Mpahlwa said on Saturday.
”The sheer volume of work which had to be undertaken … made it impossible to conclude this work in time for me to make a new decision before the expiry of the current [lottery operator’s licence],” Mpahlwa said.
The announcement of the new lottery operator would be made in a month’s time.
”The current licence [Uthingo] will expire at midnight and there is no legal basis to extend it in the present circumstances,” he said.
Mpahlwa said Saturday’s (March 31) draw would continue as normal. Players who win prizes during the course of March would be paid out, and payments to charities would not be interrupted as there were adequate reserves available for the next 12 months.
Uthingo took the minister to court after it lost its lottery mandate to another bidder, Gidani.
In his ruling on March 5, Pretoria High Court Judge Willie Seriti said that the process followed in the awarding of the new licence by the National Lottery Board was flawed.
Seriti said the board had failed to investigate the shareholdings in the first preferred bidder, Gidani, and the second preferred bidder, Uthingo.
Gidani chief executive officer, Dr Bongani Aug Khumalo, said that he accepted the minister’s decision.
”Gidani notes the minister’s decision and understands the rationale thereof,” he said.
Khumalo said that although the lottery was to be put on hold in the coming month, Gidani was ready to run the country’s lottery.
”We can confirm that we are ready in every respect, to commence running the national lottery anytime, and we have been so for a while,” said Khumalo.
Gidani was to have taken over the operation of the lottery next month.
In the meantime, Uthingo said it was saddened by the minister’s decision.
”Uthingo’s management is deeply saddened by the decision taken. We join thousands of loyal Lotto fans who must be disappointed that the games they had become accustomed to playing, has had to be put on hold,” said Uthingo CEO Dr Oupa Monamodi. – Sapa