Parks Tau Delays Decision on Fourth National Lotteries License Amid Further Evaluations

Minister Tau revealed that certain issues requiring detailed assessment have emerged during the review process.

The Minister of Trade, Industry, and Competition, Parks Tau, has announced a delay in the decision regarding the awarding of the fourth National Lotteries License, citing the need for further evaluation of key considerations. In a statement released on Saturday, Minister Tau emphasized that any premature decision would compromise the integrity and fairness of the adjudication process.

Minister Tau revealed that certain issues requiring detailed assessment have emerged during the review process. While specifics were not disclosed to safeguard the adjudication process, he assured the public that the integrity of the process is a priority.

“The running of a lottery is a complex undertaking upon which many vulnerable people and important organizations depend. Therefore, in taking my decision, I must choose an applicant which will maximize the net proceeds of the National Lottery and sports pools,” he stated.

Compliance with Legal Mandates

The Minister’s decision-making process is guided by the National Lotteries Act and the Constitution, which mandate fairness, transparency, competitiveness, and cost-effectiveness. In addition, the Act requires that the successful applicant demonstrate:

• Sufficient experience and expertise.
• Adequate financial and operational resources.
• A track record of commitment to social responsibility and advancing disadvantaged communities.
• Independence from political parties or office-bearers with any financial interest.

Minister Tau highlighted that promoting local economic development and supporting broad-based black economic empowerment (B-BBEE) are integral to the evaluation criteria.

Stakeholder Consultations and Interim Measures

Acknowledging the public and applicants' anticipation, Minister Tau said he was awaiting advice on interim measures to ensure the lottery’s continuity. He has directed that the finalization of the process occur in consultation with the National Treasury and the National Lotteries Commission (NLC) Board.

At an earlier media briefing in October, NLC Commissioner Jodi Scholtz confirmed that public engagement regarding the Request for Proposals for the appointment of the Fourth National Lottery Operator would only take place after the Minister’s decision.

The Path Ahead

In addition to his consultation with stakeholders, Minister Tau has pledged to communicate openly about the process, balancing transparency with the need to preserve the adjudication’s integrity.

He also reaffirmed his commitment to selecting an operator capable of not only managing the National Lottery responsibly but also maximizing benefits for vulnerable communities and organizations dependent on lottery proceeds.

The Minister assured the public that the delay, though inconvenient, reflects a rigorous commitment to ensuring a fair and equitable outcome that aligns with South Africa’s broader socio-economic goals.

“Throughout this process, I have been, and will continue to be, in communication and consultation with the Board of the National Lotteries Commission,” Tau concluded.

Conclusion

While the decision on the fourth National Lotteries License remains pending, the Minister’s adherence to transparency, fairness, and due diligence underscores the importance of the lottery’s impact on the nation’s social and economic fabric.