
Cape Town – The Portfolio Committee on Trade, Industry and Competition in Parliament has conveyed its “approval” of the Minister’s choice to “further evaluate the bids” for the new lottery license.
On Saturday, December 21, 2024, Trade, Industry, and Competition Minister Parks Tau delayed his anticipated decision regarding the granting of a new lottery license.
The current lottery license is scheduled to expire next year on May 31.
The committee remarked: “Chairperson Mzwandile Masina appreciates the Minister’s decision to thoroughly review the bids while maintaining the integrity of the licensing process as required by the Lotteries Act 57 of 1997.
“The committee fully supports the Minister’s position that additional measures will be taken to ensure the credibility of this process, which has recently come under public scrutiny.
“We encourage the Minister to consider various alternatives if awarding the new lottery license before the third Lottery license expires on May 31, 2025, becomes unfeasible.
“Such alternatives might involve exploring Section 13B of the Lotteries Act concerning temporary licenses and/or contemplating a ‘State-led’ Lottery as outlined in Section 13A of the Act, among others.”
Masina reiterated the Minister’s viewpoint that the operation of the National Lottery is intricate and that many vulnerable individuals and substantial organizations depend on it.
“This warrants meticulous due diligence,” observed Masina.
The committee commended the Minister’s dedication to fulfilling his responsibilities under the law to ensure a fair, equitable, transparent, competitive, and cost-effective adjudication process.
The Minister indicated that applicants must exhibit a robust commitment to social responsibility initiatives and the upliftment of historically disadvantaged communities.
The committee cautioned that, once the final decision is made, sufficient time should be allocated for handover, setup, testing, and other technical preparations.
“Additionally, any steps taken by the ministry should aim to minimize or restrict the duration without an active operator, as this could disrupt and adversely impact beneficial causes,” the committee added.
Moreover, the committee appreciated the Minister’s recognition of his duty to ensure that no political party or office-holder has a direct financial interest in any applicant or its shareholders, which is vital when considering the award of the National Lottery license.
In conclusion, the committee lauded the Minister for his prudent approach and careful consideration of the issue.
“We are confident that the insights and feedback provided during the Portfolio Committee’s meetings will be duly acknowledged without compromising the process, especially regarding the ‘conflict of interests’ concerns raised on various occasions,” the committee stated.