Sat Oct 22 03:54:01 CAT 2016

National lottery's new operator is anyone's guess

By unknown | Mar 09, 2007 | COMMENTS [ 0 ]

Isaac Moledi

Isaac Moledi

With only 21 working days to go, trade and industry minister Mandisi Mpahlwa has yet to make a pronouncement on whether Uthingo Management will continue to operate the national lottery or bidder Gidani will take over.

The national lottery was left in disarray this week when the Pretoria high court set aside Mpahlwa's decision to award the lottery operating licence to Gidani, a consortium that includes ANC bigwigs.

Trade and industry's media division told Sowetan that the minister would respond once a decision had been made, but would not say when that was likely to be.

Gidani has reportedly created about 30000 jobs and spent hundreds of millions of rands on infrastructure for operating the lottery from the beginning of next month.

For Uthingo, it was business as usual, said its chief executive, Oupa Monamodi, this week.

According to Monamodi, the logical outcome of the ruling was that Uthingo would be expected to feature in some way as the operator of the national lottery.

Judge Willie Seriti said on Monday that the process followed by the National Lotteries Board to award the licence to Gidani or Uthingo was flawed.

Seriti said there had not been an investigation into who held shares in the bidding companies.

Despite the Lotteries Act prohibiting political office-bearers from holding a financial interest in the successful consortium, prominent ANC members held financial interests in both Gidani and Uthingo.

Education Minister Naledi Pandor had shares in Black Management Forum Investment, which had a 10percent stake in Uthingo.

ANC national executive committee member Max Sisulu and former ANC Western Cape leader Chris Nissen had shares in Gidani.


Login OR Join up TO COMMENT