Cape Town – Parliament’s Portfolio Committee on Trade, Industry and Competition says it “welcomes” the Minister’s decision to “further interrogate the bids” for the new lottery license.
Trade, Industry, and Competition Minister Parks Tau on Saturday, (21 December 2024), delayed an expected decision on the awarding of a new lottery licence.
The current lottery licence expires next year on 31 May.
The committee said: “Chairperson Mzwandile Masina, welcomes the Minister’s decision to further interrogate the bids without compromising the credibility of the licensing process as directed by the Lotteries Act 57 of 1997.
“The committee fully supports the Minister’s statement that further work will be done to ensure the credibility of this process which has come under public scrutiny in the recent past.
“We implore the Minister to consider various options if awarding the new lottery licence becomes impractical before the expiry of the 3rd Lottery licence on 31 May 2025.
“Such options could include exploring Section 13B in the Lotteries Act that deals with issuing a temporary licence and/or considering the option of a ‘State led’ the Lottery in terms of Section 13A of the Act amongst others.”
Masina shared the Minister’s views that the running of the National Lottery was complex and that many vulnerable people and important organisations depend on it.
“This makes due diligence more necessary,” Masina said.
The committee said it acknowledges the Minister’s commitment to fulfil his responsibility in respect of the law when it came to ensuring a fair, equitable, transparent, competitive, and cost-effective adjudication process.
The Minister announced that an applicant needed to demonstrate the necessary commitment to a social responsibility programme and the advancement of the historically disadvantaged.
The committee said it “wishes to caution that whenever the final decision is made, sufficient time for hand-over must be provided to allow setup, testing and other technical work.
“Furthermore, any work by the ministry should minimise or limit the period where there may not be an active operator as this would disrupt and impact negatively on good causes.”
The committee said it welcomes the Minister’s recognition that he has a duty to ensure that no political party or political office-bearer has any direct financial interest in the applicant or a shareholder of the applicant, which is an important aspect when considering the awarding of the National Lottery licence.
The committee said it commends the Minister for acting cautiously and applying his mind on the matter.
“We have full confidence that the observations and input given during the Portfolio Committee’s meetings will also be taken into account without meddling in the process, especially as it relates to ‘conflict of interests’ as sharply raised on numerous occasions,” the committee said.
