M Mpahlwa: Statement on National Lottery

Latest statement from the Minister of Trade and Industry, Mr
Mandisi Mpahlwa, on the National Lottery

3 May 2007

I had informed the public on the 31 March 2007 that after I had considered
the decision of the court, I caused further investigative work to be undertaken
by the National Lotteries Board (NLB) in line with the court's requirements and
that the volume of work that had to be undertaken made it impossible for the
NLB to conclude the work in time for me to make a new decision before the
expiry of the previous licence.

I also said that I was in consultation with all of the bidders, with whose
support we were exploring options in the law to minimise the period in which
there would be no lottery.

I stated that in these circumstances I expected to announce the appointment
of a national lottery operator in about one month.

I have had several meetings with all the bidders and consulted with my legal
advisors in an effort to find a solution so as to minimise the time during
which there would be no lottery. We, together with the bidders, were unable to
find a sound legal basis upon which we could contemplate the running of a
lottery on an ad hoc basis.

The NLB had during this time proceeded with the work that it was required to
do. I must also emphasise that in order for the NLB to complete its work, it
required the prompt co-operation of all the bidders.

The NLB approached me during the course of April 2007 and stated that, in
order to ensure a complete and thorough process, they would require additional
time to complete the work that I had asked them to do.

The board explained that the need for additional time to complete the
process was due, in part, to the delayed submission of the necessary
information by some of the bidders as well as the processing of such
information as and when it became available.

I decided to allow the NLB the additional time that they requested so that
they can satisfy themselves with the recommendation they are required to make
to me in respect of the bidder who may operate the national lottery.

Once the board has completed its work and made its recommendation to me, I
will require some time to properly consider it. I would then have the option to
either accept or reject their recommendation. In the event that I accept the
board's recommendation, I will then need to give them time to negotiate the
licence agreement with the selected bidder where after they would have to
submit the licence to me for consideration and if satisfied I will sign and
issue the licence to the successful bidder.

I continue to be mindful of the great interest of the public in the national
lottery and regret its temporary suspension.

I am committed to ensure that this process is completed in as short a time
as possible and I will make a further statement on this matter at the end of
May 2007.

Payments to good causes and ticket holders will be unaffected during this
time.

Issued by: Department of Trade and Industry
3 May 2007
Source: Department of Trade and Industry (http://www.thedti.gov.za/)

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