Parks Tau
By Thabo Mosia
The Minister of Trade, Industry, and Competition, Parks Tau, has delayed his decision on the granting of the fourth National Lotteries Licence, citing the need for further evaluation to ensure due diligence in the process.
In a statement released on Saturday, Minister Tau expressed the gravity of the decision and the necessity of applying his mind fully to all relevant factors. “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,” Tau said.
The announcement comes at a crucial time as the National Lotteries Commission (NLC) seeks a successor to oversee the operations of South Africa’s national lottery and sports pools. The minister’s delay underscores the complexities of the decision-making process, balancing legal compliance, social responsibility, and economic impact.
Protecting the Integrity of the Process
Minister Tau emphasised that maintaining the integrity of the licensing process is paramount. He highlighted that some critical matters require further evaluation before any announcement can be made, adding that disclosing these issues prematurely could prejudice the proper adjudication of the process.
“The running of a lottery is a complex undertaking upon which many vulnerable people and important organisations depend,” said Tau. “Therefore, in taking my decision, I must choose an applicant which, I believe, will maximise the net proceeds of the National Lottery and sports pools.”
The minister also outlined the stringent criteria for selecting a licence holder. These include ensuring that the applicant has sufficient experience, financial stability, and resources, as well as meeting the legal requirement of being “fit and proper persons.” Additionally, Tau must ensure that no political party or office-bearer has a direct financial interest in the applicant, aligning with the National Lotteries Act.
Upholding Constitutional and Legislative Standards
The decision-making process is governed by the provisions of the South African Constitution and the National Lotteries Act. These legal frameworks demand a process that is fair, equitable, transparent, competitive, and cost-effective.
“In addition to the constitutional requirements, I must ensure that the successful applicant demonstrates a commitment to social responsibility and the advancement of those disadvantaged by unfair discrimination,” Tau explained. He also underscored the importance of promoting local economic growth and broad-based black economic empowerment (BBBEE) in the final selection.
The minister acknowledged that the delay might be frustrating for stakeholders and applicants but assured them of the government’s commitment to a meticulous and fair process.
National Lottery’s Impact on South African Society
The National Lottery plays a significant role in South Africa’s socio-economic landscape, funding numerous charitable initiatives, community projects, and developmental programmes. With millions depending on the lottery’s proceeds, the stakes for selecting the right operator are high.
Minister Tau reiterated the importance of selecting a licence holder who would not only generate revenue but also uphold the lottery’s mission of giving back to society. “This decision impacts countless organisations and vulnerable individuals who rely on the funds generated by the National Lottery. It is imperative that we get it right,” he said.
Progress on the Licensing Process
The Request for Proposals (RFP) for the fourth National Lottery Operator has garnered significant interest. According to NLC Commissioner Jodi Scholtz, the process has been conducted with strict adherence to regulatory guidelines, ensuring fairness and transparency.
At an October media briefing, Scholtz noted that public and media engagement regarding the RFP process would only take place after Minister Tau concludes the decision-making process. This approach aims to safeguard the integrity of the proceedings and avoid undue influence.
Ensuring Continuity in Lottery Operations
While the minister’s decision remains pending, Tau assured the public that steps are being taken to ensure the uninterrupted operation of the National Lottery. He is consulting with the National Treasury and the NLC Board to develop an interim plan while the licensing process is finalised.
“Throughout this process, I have been, and will continue to be, in communication and consultation with the Board of the National Lotteries Commission,” he said. This collaboration aims to minimise disruptions and maintain public trust in the lottery system.
Challenges and Expectations
The delay in awarding the licence has raised questions about the challenges faced by the minister. Industry experts have pointed to the high stakes involved in the decision, particularly given the potential economic and social implications. Tau’s meticulous approach reflects a commitment to ensuring that the final decision aligns with national interests.
In his statement, the minister acknowledged the anxieties of applicants and the public, stating: “I am mindful of the complexity and gravity of the issues that must be considered. Therefore, I have decided to postpone my decision pending the consideration of these matters.”
Tau also highlighted the lessons learned from managing the licensing process, noting that these could serve as a template for improving governance in other state-owned enterprises (SOEs).
Social Responsibility and Economic Empowerment
One of the key criteria for selecting a licence holder is their commitment to social responsibility. Minister Tau emphasised the need for the successful applicant to demonstrate a clear plan for advancing disadvantaged communities. This includes prioritising BBBEE and promoting local economic development.
The minister’s focus on social responsibility aligns with the broader goals of the National Lottery, which has historically funded initiatives in education, health, and community development. By holding applicants to high standards, Tau aims to ensure that the lottery continues to serve as a catalyst for positive change.
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