The Government of Guyana has issued a Request for Proposals (RFP) for prospective companies desirous of providing lottery products and services to provide a financial projection for five years showing the estimated revenue government will receive from the proceeds, among a number of other requirements.
Stabroek News understands that the contract with the Canadian Bank Note-owned Guyana Lottery Company recently expired and it is for this reason the advertisement was placed.
“The Government of Guyana, through the Ministry of Finance, is seeking proposals for the provision of a full-service Lottery gaming solution, including but not limited to commercial, sales, and platform solutions,” the advertisement in the last Sunday Stabroek stated.
“The proposals should contain…a general description of the tenderer’s capabilities, financial strength and past experience in supplying the system required. The detailed business proposal with the IT infrastructure to execute the Tenderer’s business plan. Financial projections for five years including the cost of providing the services and estimated revenue that will be paid to the government of Guyana,” it adds. A technical and cost proposal must be submitted and bids must be stated in Guyana dollars. The complete RFP is on the Ministry of Finance’s website at https://finance.gov.gy/bids/.
The document, which was seen by this newspaper, gives an introduction, tender preparation costs, and takes the prospective applicant through general terms and conditions, detailing instructions of how to submit tenders and a sample of how the bids will be evaluated. “Tenderers wishing to be considered are required to complete all sections of this document according to these instructions and submit a proposal that describes their capability to deliver, install, test, customize, commission, operate and support their solution to meet Government’s anticipated service launch date and maintenance thereafter.” The document further requires that the technical, operational and any other support requirements, as well as the terms and conditions under which the proposed lottery games will be offered by the tenderers, must also be described in the proposal.
Of the business need for the service, the document states that the Government of Guyana is seeking a “full-service lottery gaming solutions service provider with: (a) the ability to offer multiple games through various channels: retail, mobile retail, online; (b) the capacity to offer: commercial services, marketing, operation of multiple sales channels, and access to a suitable platform; (c) a proven track record of: (i) compliance with government fees and payments; and, (ii) growing government fees, players shares, and allowing regulators transparent access to system information: (d) membership in the internationally recognized lottery and gaming body and experience operating in a similar market; (e) obtain retailer terminals, supporting systems, and services that are operationally sound, incorporate the highest level of integrity and security, and minimize risk for the Lottery…” The successful bidder also must, “(g) obtain a system that is sufficiently flexible to meet the Lottery’s evolving requirements; (h) ensure that all proposed systems and services are ready to be operational by the agreed schedule; and, i) maximize net lottery proceeds for the Government of Guyana.”
Playing online
Gamblers must also have the opportunity to play online, among other channels. “The Lottery gaming service provider or gaming service provider will be required to offer a full-service Lottery solution exclusively to domestic players through various channels in licensed premises, mobile sales, and online (via website or software application). The service provider will also be required to offer multiple number lottery-type games, including but not limited to one number, two number, three number games, jackpot type games, and other games approved by Government of Guyana.”
Under the late President, Cheddi Jagan, the Government of Guyana and Canadian Bank Note (CBN) in 1995 inked an agreement for the establishment of a national lottery here, under the Government Lotteries Act. Under this agreement, CBN had to pay Licence fees equivalent to 24% of gross revenue annually, while government undertook not to permit another lottery of similar scope during the life of the agreement. Then in 1996, the Guyana Lotteries Commission was established and by cabinet’s decision it managed the receivable licence fees and ensured that amounts spent were within the national sector and in accordance with the guidelines for access to the lottery funding.
Over the years, proceeds received from Lotto games by the Lotteries Commission were used to make payments approved by Cabinet. The proceeds were retained in a special bank account and no amounts were ever paid over to the Consolidated Fund. The Auditor General has been critical of this policy, and has said multiple times that it [proceeds not being paid into the Consolidated Fund] is a violation of Section 43 of the Fiscal Management and Accountability Act. That Section of the Act states, “except as otherwise provided in this Act or in any other law, at the end of each fiscal year, any unexpended balance or public moneys issued out of the Consolidated Fund shall be returned and surrendered to the Consolidated Fund.”
Political activist and former MP, Desmond Trotman, had sued the former government over its failure to pay monies obtained from the Guyana Lottery Company into the Consolidated Fund, saying the practice, as well as disbursements without parliamentary approval, was illegal. In 2018, Auditor General Deodat Sharma declared that the expenditure of hundreds of millions of dollars by the Guyana Lotteries Commission could not be verified, given the absence of financial statements for the years 2015 to 2017.
Former Minister of Finance Winston Jordan had repeatedly told Stabroek News that the lotteries commission is required to make decisions in relation to the fund and provide the ministry with a report of its decisions, while then Minister of State, Joseph Harmon, said that any deductions from the Fund must first be approved by the Commission, which would convey that recommendation to the Ministry of Finance.
