Pretoria-Trade and Industry Minister Rob Davies has issued the third national lottery license to Ithuba Holdings with the licence agreement having been concluded.
“Following successful negotiations with Ithuba Holdings (Pty) Ltd, the Minister of Trade and Industry, Dr Rob Davies decided to issue the third national lottery licence to Ithuba and the parties have today concluded a Licence Agreement,” the department said on Friday.
The conclusion of the license agreement follows on a challenge made by previous lotto operator Gidani’s decision to challenge the Minister’s decision made in November 2014 to select Ithuba as the preferred bidder. Gidani had also sought to review and set aside the decision to award the Licence to Ithuba.
While the Pretoria High Court set aside the Minister Davies’ decision to issue the licence to Ithuba and the ensuing licence agreement, it refused to set aside the Minister’s decision to select Ithuba as the preferred bidder.
Minister Davies considered the judgment of the High Court and elected to negotiate with Ithuba as the preferred bidder on the terms of the licence agreement to operate the third national lottery.
“In reconsidering his decision, Minister Davies sought to address the concerns raised by the court relating to the 2014 licence agreement. Minister Davies is satisfied that Ithuba Holdings (Pty) Ltd meets the requirements set out in section 13 of the Lotteries Act, 1997 and is a suitable applicant to conduct the national lottery,” explained the department.
Ithuba commenced operating the lottery on 1 June 2015, when Gidani’s licence expired and, in the one month period in which the court’s declaration of invalidity was suspended, Ithuba continued to operate the national lottery with no interruption to the operations of the lottery.
“Minister Davies is confident that now that the process has been finalised, Ithuba will continue with its plans to operate and invigorate the National Lottery and ensure continued contributions to good causes.”
Chief Executive Officer of Ithuba, Charmaine Mabuza said that the outcome of the negotiation period reconfirms that the bidding process had been a fair and transparent one.
“As Ithuba we believe that this is once again testament to the fact that our bid was exemplary, and has passed the scrutiny of even the highest courts in the land,” she said.-SAnews.gov.za
