SOUTH AFRICANS GO LOTTO AGAIN

12 October 2007

Disputed national lottery back in action under a new administrator


After months of lying in limbo due to a legal dispute over the operating contract, with punters unable to purchase weekly lottery tickets, the South African national lottery is back in action again this weekend under new administrator Gidani.

This was confirmed Friday by former operator Uthingo's Non-Executive Chairman, Barney Pityana, who said it was not in Uthingo's interests to inconvenience the public, according to reports from the South African Press Association.

"We will not challenge the minister's decision. We will cooperate with the new licence holders to bring this matter to a close," said Pityana.

Trade and Industry Minister Mandisi Mpahlwa awarded the licence to operate the lottery to Gidani last month after a protracted dispute on the award of the administration and operating contract that resulted in a hold on operations imposed in March this year by the Pretoria High Court.

The court ruled in favour of Uthingo, which made the application for the hold, saying the contract award process to Gidani was suspect and contrary to the Lottery Act. The court ordered the minister to review his decision and to address the concerns raised by Uthingo.

Mpahlwa announced on September 21 (see previous InfoPowa report) that this process had resulted in Gidani retaining the licence, albeit with certain restructuring.

Pityana said Uthingo had questioned the way the minister had handled the matter.

"We are convinced the minister did nothing that could suggest that a review (had been) done, as ordered by the court," he said.

Uthingo Chief Executive Oupa Monamodi said the company would co-operate with Gidani for a smooth transition of the lottery operation. It would also help resolve the problem of people in possession of winning tickets bought before the "old" lottery licence expired.

"People should hold on to their tickets. Processes of refunding . . . will be agreed to by all stakeholders concerned," said Monamodi.

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