Cape Town – The Portfolio Committee on Trade, Industry and Competition in Parliament has expressed its “appreciation” for the Minister’s decision to “carefully review the bids” for the new lottery license.

On Saturday, December 21, 2024, Trade, Industry, and Competition Minister Parks Tau delayed an expected decision regarding the granting of a new lottery license.

The current lottery license is scheduled to expire next year on May 31.

The committee remarked: “Chairperson Mzwandile Masina appreciates the Minister’s decision to further assess the bids while maintaining the integrity of the licensing process as outlined by the Lotteries Act 57 of 1997.

“The committee fully supports the Minister’s claim that additional measures will be taken to safeguard the credibility of this process, which has recently come under public scrutiny.

“We urge the Minister to consider alternative options if it is not feasible to award the new lottery license before the existing license expires on May 31, 2025.

“These alternatives might involve examining Section 13B of the Lotteries Act concerning temporary licenses and/or contemplating a ‘State-led’ Lottery under Section 13A of the Act, among others.”

Masina reiterated the Minister’s view that the operation of the National Lottery is intricate and that many vulnerable individuals and major organizations depend on it.

“This calls for comprehensive due diligence,” Masina commented.

The committee lauded the Minister’s commitment to fulfill his responsibilities under the law to ensure a fair, equitable, transparent, competitive, and cost-effective evaluation process.

The Minister indicated that applicants need to prove a strong dedication to social responsibility initiatives and the development of historically disadvantaged communities.

The committee warned that once the final decision is made, sufficient time must be allocated for handover, setup, testing, and other technical preparations.

“Furthermore, any actions taken by the ministry should minimize or limit the period without an active operator, as this could disrupt and adversely affect beneficial causes,” the committee added.

In addition, the committee welcomed the Minister’s recognition of his responsibility to ensure that no political party or office-holder holds a direct financial interest in any applicant or its shareholders, which is essential when considering the awarding of the National Lottery license.

Lastly, the committee commended the Minister for his prudent approach and careful consideration of the issue.

“We are confident that the insights and feedback provided during the Portfolio Committee’s discussions will be appropriately considered without interfering with the process, particularly in relation to the ‘conflict of interest’ concerns raised multiple times,” stated the committee.