Trade, Industry and Competition Minister Parks Tau.
Trade, Industry and Competition Minister Parks Tau has postponed his decision on the awarding of the fourth National Lotteries license pending the consideration of matters he said required further evaluation.
The running of a lottery is a complex undertaking upon which many vulnerable people and important organisations depend, Tau said.
Tau added that he must ensure that the owners and managers of the successful applicants are, as the National Lotteries Act states, “fit and proper persons” and that no political party or political office-bearer has any direct financial interest in the applicant or a shareholder of the applicant.
“I must choose an applicant that has demonstrated the necessary commitment to the social responsibility programme and to the advancement of those disadvantaged by unfair discrimination. For this reason, some of the criteria that are considered are the promotion of our local economy and broad-based black economic empowerment.”
Tau said he was aware that applicants anxiously await a decision and also of the complexity of the issues at play.
“Unfortunately, I am not in a position to make a final decision at this stage. Any such decision at this time would in all good conscience mean that I have not applied my mind with due consideration of all the relevant factors. I have identified matters that require further evaluation. It would be inappropriate to disclose these issues now and their disclosure could very well prejudice the proper adjudication of the awarding of the licence. A protection of the integrity of the process is of paramount importance,” Tau said.
He added that he was awaiting advice on the best way to ensure the continuation of the national lottery in the interim and the development of a programme to finalise this process, which he directed must be done after consultation with the National Treasury.
Earlier this month, the “Cape Times“ reported that none of the large auditing and accounting firms wanted to be associated with the National Lotteries Commission (NLC) when it embarked on the search for a new lottery operator.
Tau said the NLC engaged four large auditing and accounting firms together with at least three medium-sized transaction advisory firms.
“Due to the risk exposure of the NLC at the time, resulting from the SIU investigation and allegations of financial mismanagement against former NLC board members, executives and management, none of the large auditing and accounting firms wanted to do business with the NLC. “Only one mid-sized transaction advisory firm complied with the issued request for proposal, however, the firm did not have the skills and resources to execute the scope of work for the evaluation committee,” he said, adding that the only option available for the NLC at the time was to appoint individuals to constitute the evaluation committee.
Cape Times
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