Cape Town – The Portfolio Committee on Trade, Industry and Competition within Parliament has expressed its appreciation for the Minister’s decision to conduct a “deeper examination” of the bids for the new lottery license.
On Saturday, December 21, 2024, Trade, Industry, and Competition Minister Parks Tau announced the postponement of a highly anticipated decision regarding the awarding of a new lottery license.
The current lottery license is scheduled to expire on May 31 of next year.
The committee remarked: “Chairperson Mzwandile Masina supports the Minister’s decision to further scrutinize the bids, ensuring that the integrity of the licensing process remains intact as outlined by the Lotteries Act 57 of 1997.
“The committee is fully in agreement with the Minister’s statement that further actions will be taken to maintain the credibility of this process, which has been under public scrutiny lately.
“We encourage the Minister to consider alternative options should it prove challenging to award the new lottery license before the expiration of the third Lottery license on May 31, 2025.
“These alternatives may involve exploring Section 13B of the Lotteries Act relating to temporary licenses and/or possibly investigating a ‘State-led’ Lottery under Section 13A of the Act, among other possibilities.”
Masina reiterated the Minister’s view that operating the National Lottery is a complex matter, with many vulnerable individuals and significant organizations depending on it.
“This calls for meticulous due diligence,” Masina stated.
The committee acknowledged the Minister’s dedication to fulfilling his responsibilities regarding the law to facilitate a fair, transparent, equitable, competitive, and cost-effective adjudication process.
The Minister stressed that applicants must show a strong commitment to social responsibility initiatives and the improvement of historically disadvantaged communities.
The committee warned that once the final decision is made, sufficient time should be provided for the transition, setup, testing, and other technical arrangements.
“Additionally, any measures implemented by the ministry should aim to minimize or limit the period without an active operator, as this could hinder and negatively impact beneficial causes,” the committee added.
Moreover, the committee welcomed the Minister’s recognition of his responsibility to ensure that no political party or office-holder has a direct financial interest in any applicant or its shareholders, which is vital when deliberating on the awarding of the National Lottery license.
In conclusion, the committee commended the Minister for his prudence and careful thought regarding the issue.
“We are confident that the insights and feedback shared during the Portfolio Committee’s meetings will be duly recognized without disrupting the process, particularly concerning the ‘conflict of interests’ matters raised on several occasions,” the committee remarked.
