More delays frustrate start of national lottery
Pauline Dikuelo | Monday September 6, 2021 06:00
A hearing into the appeal is due and Grow Mine has another opportunity to appeal the decision of the appeals body if the ruling does not go their way, pushing the start of the lottery further down the line.
Meanwhile, Ithuba, the South African-powered company chosen by the Gambling Authority to replace Grow Mine, could also drag the matter to court should Grow Mine succeed in its appeal.
This week, Gambling Authority CEO, Thulasizwe Johnson said the organisation is doing the best it can in terms of the legislative arrangements available, adding that it is for the chairperson of the appeal hearing to determine who is right between the authority and Grow Mine.
“Grow Mine is entitled to appeal and they have formally done so,” he told BusinessWeek. “In the appeal, they state their grounds and Gambling Authority will also state its position. “The chairperson of the hearing will decide if Grow Mine has a case or not and they may decide to reinstate them or not.”
Grow Mine, a consortium of high-profile local businesspeople and corporate entities, was awarded the 10-year licence to operate the country’s first national lottery in June last year. Last month, however, the Gambling Authority revoked Grow Mine’s status as preferred bidder noting negotiations around the lottery had proved unsuccessful. The aggrieved Grow Mine then appealed the decision at the Ministry of Investment, Trade and Industry.
Insiders close to the latest developments told BusinessWeek previously that matters ground to a halt when Grow Mine was due to make a P10 million upfront payment to the authority in order to kickstart the lottery. The failure was apparently due to well-publicised clashes between the powerful and wealthy shareholders at Grow Mine.
The upfront payment would have been used as security to pay for the jackpot prizes in case the licence holder failed to raise sufficient money through ticket sales.
The national lottery has had a troubled journey since it was announced in 2017. Ithuba, the new preferred bidder, halted Grow Mine’s lottery talks last year accusing the Gambling Authority of flouting its own regulations regarding the bidding.