GA advances lottery talks despite looming legal challenge
The Gambling Authority (GA) is pressing on with talks with Ithuba Botswana for the country’s long-awaited lottery licence, despite a looming legal challenge from sidelined bidder, GrowMine.
BusinessWeek is informed that the authority expects to present a draft licence to its board soon, a key step in kicking off the lottery which is eagerly awaited by Batswana.
Ithuba Botswana, a subsidiary of a well-known pan-African group Ithuba Holdings, was the reserve bidder of the national lottery licence, which was originally scooped by GrowMine, a local consortium of businesses and businesspeople.
However, talks with GrowMine floundered on key requirements sought by the GA, leading to Ithuba’s emergence as the preferred bidder in April.
GrowMine filed an appeal with Trade and Industry minister, Mmusi Kgafela who subsequently ruled that he did not have jurisdiction in the matter.
This week, the GA’s vice chairperson, Marvin Torto told BusinessWeek talks were proceeding.
“GrowMine wants the minister’s decision to be set aside and the appeal to be referred to him to determine it on merits,” Torto explained.
“If the review of the minister’s decision is not successful, GrowMine requests that the authority’s decision to revoke its preferred applicant status and to terminate the national lottery negotiations be reviewed and set aside.”
In revoking GrowMine’s status as the preferred bidder, the GA found that the consortium could not prove the financial muscle required to kickstart the lottery. GrowMine suffered internal battles which resulted in a key shareholder, Sefalana Holdings pulling out its support.
As the preferred bidders of the national lottery, GrowMine failed to make a P10 million upfront payment to the authority to kickstart the lottery.
The upfront money would have been used as security to pay for the jackpot prizes in case the licence holder failed to raise sufficient money through tickets.
Meanwhile, the authority is currently in the process of appointing a CEO following the departure of Thulisizwe Johnson.
“The authority does not have a CEO or an acting CEO,” Torto said.
“The process to appoint an acting CEO is ongoing.
“The recruitment process of a CEO is also ongoing.”