Latest news with #NationalLotteryLicence
The Citizen
03-07-2025
- Business
- The Citizen
EFF asks Ramaphosa for clarity on new lotto operator and alleged ties to Mashatile
Malema says the EFF reserves the right to pursue legal remedies with regard to the awarding of the National Lottery Licence. EFF leader Julius Malema has demanded clarity from President Cyril Ramaphosa on the awarding of the National Lottery Licence to Sizekhaya Holdings and the company's alleged political ties to Deputy President Paul Mashatile. Trade, Industry and Competition Minister Parks Tau awarded the eight-year licence to Sizekhaya in May, handing over the reins from long-term operator Ithuba. Sizekhaya Sizekhaya is part-owned by Bellamont Gaming, a company co-owned and co-directed by Mashatile's sister-in-law Khumo Bogatsu and prominent KwaZulu-Natal (KZN) businessman Moses Tembe. Tembe is also the chair of the consortium, while Sandile Zungu – another prominent KZN businessman – holds directorship. Furthermore, Zungu is a stakeholder in Goldrush, a gambling company that has shares in Sizekhaya. 'Grave concern' In the letter, Malema expressed 'grave concern' over the apparent politics of patronage and the 'intricate web of familial and political connections'. He said the EFF had previously cautioned against this appointment due to, among other things, Zungu and Tembe's affiliation with the ANC. 'The involvement of the Deputy President adds a troubling dimension to this matter. It has come to light that Khumo Bogatsu – a co-owner of Bellamont Gaming, which is also a shareholder in Sizekhaya Holdings – is the twin sister of South Africa's Second Lady, Humile Mashatile, the wife of Deputy President Paul Mashatile,' Malema wrote. 'Furthermore, Ms Bogatsu is engaged to businessman Sbu Shabalala, who is a cousin of Moses Tembe, the lead figure in Sizekhaya and co-owner of the Goldrush Consortium.' Malema said these links suggest the awarding of the lottery licence may have been influenced, which constitutes state capture. ALSO READ: Tau vows to investigate after Mashatile's sister-in-law linked to multi-billion lotto operator licence Malema demands answers from Ramaphosa He proceeded to demand answers to the following questions: Are you aware of the extent of political ties involved in the appointment of Sizekhaya Holdings as the National Lottery operator? If you are aware, do you support the decision made by Minister Tau despite serious procedural irregularities, conflicts of interest, and the defiance of parliamentary oversight? Have you personally engaged Deputy President Mashatile on this matter, and if so, what explanation has he provided regarding the involvement of his immediate family in a multi-billion-rand public contract? In light of the State Capture Commission and your stated anti-corruption stance, what is your position on politically exposed persons and their close relatives benefiting from government contracts or public licences such as this one? Possible legal action Malema said the EFF believes the National Lottery must serve the developmental interests of South Africans, not those of the political elite. 'The level of political entanglement in this deal, compounded by Minister Tau's refusal to be held accountable, undermines the legitimacy of this award and sets a dangerous precedent for future public procurement.' He said his party reserves the right to explore legal options, including approaching the courts to 'compel disclosure of the appointment process and, where necessary, to have these appointments reviewed and set aside on grounds of irrationality, procedural irregularity, or breach of public governance principles'. Mashatile addresses allegations Mashatile has denied suggestions of political interference and argued that Bellamont Gaming was not doing business with the Presidency. He said it was unfair to question why his relatives were conducting business. 'There are so many people who know me in this country – family, children, cousins and friends. Where must they do business, in Zimbabwe? Out of this country,' Mashatile asked during an interview with Sowetan on Tuesday. 'They can do business, as long as I'm not involved, not because they know me. Because once you say Mr Mashatile is capable of influencing, even if he is sitting in his house, it's unfair. You must be able to say he went there to interfere.' ALSO READ: WATCH: Mashatile denies family tied to multibillion-rand lottery deal Bosa requests transparency EFF is not the only party that has expressed concern over the awarding of the licence. In May, Musi Maimane's Bosa called for full transparency from Tau, requesting a list of adjudicators and consultants involved in the lottery tender process. The party also asked for their disclosures and declarations of interest, as well as a report to parliament outlining the evaluation criteria and scoring of each bid. 'South Africans have a right to know whether this process has been conducted above board or whether it is tainted by insider influence or political interference,' the party said in a statement. 'We will not allow South Africa's public resources, or the hopes of the vulnerable communities who depend on lottery funding, to be hijacked by cronyism or corruption.' DA asks Tau to appear before committee The DA also requested Tau and the National Lotteries Commission to appear before the Parliament's trade and industry portfolio committee to answer questions concerning the licence. During the meeting on 24 June, Tau said he would investigate the conflict-of-interest allegations concerning Sizekhaya – much to the DA's dissatisfaction. 'The DA is astounded that Minister of Trade, Industry and Competition, Parks Tau, came to Parliament today to effectively admit to committee, that he had failed in his executive duties to properly oversee the appointment of the new Lottery Operator Sizekhaya Holdings,' DA MP Toby Chance said in a statement following the minister's appearance. 'It is Tau's duty to ensure that conflicts of interest between the bidders and government are picked up, and his lack of awareness of possible links between Deputy President Paul Mashatile, his family and shareholders in Bellamont Gaming is simply unacceptable.' Watch the meeting here: NOW READ: Ithuba poised to run Lottery for next year — despite legal concerns
IOL News
26-05-2025
- Business
- IOL News
Tau to announce new operator for National Lottery
Trade, Industry and Competition Minister Parks Tau has been forced by the High Court to appoint Ithuba's replacement as the operator of the National Lottery. Image: Independent Media Archives Trade, Industry and Competition Minister Parks Tau will on Wednesday announce a new company to operate the National Lottery, after the Gauteng High Court, Johannesburg, rejected his attempt to extend Ithuba Holding's contract to May 31 next year under a temporary licence. Tau wanted to extend Ithuba's contract despite that it was due to expire on May 31. Delivering judgment on the case brought before him by one of the bidders, Wina Njalo Proprietary Limited, Judge Sulet Potterill said on May 21 that Tau was acting unconstitutionally and unlawfully in delaying choosing a new company to succeed Ithuba in the operation of the National Lottery. Ithuba's contract started in June 2015. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Next Stay Close ✕ Ad Loading 'The minister is ordered to determine a successful applicant for the fourth National Lottery Licence by no later than 28 May 2025. 'The minister must negotiate a licence agreement by no later than 28 May 2025,' read the court order. Trade, Industry and Competition spokesperson Bongani Lukhele said eight companies were shortlisted for the contract, but declined to name them, saying the list 'has not been officially released'. However, Judge Potterill suspended his order for five months to give a successful bidder enough time to prepare for the takeover. This would require acquiring equipment and substantial infrastructure totalling hundreds of millions of rand. The winner would have to look for funding from businesses. The judge also ordered Tau, the National Lotteries Commission (NLC), and Ithuba Lottery to pay legal costs for Wina Njalo's three counsels. The judge established that a newcomer would have to establish the infrastructure, including manufacturing and transporting terminals across the country. Wina Njalo approached the court after learning that Tau intended to extend the contract for 12 months, despite the bid evaluation, adjudication committee, and independent audit concluding their work of selecting the front runners on August 31 last year. Initially, Tau was supposed to announce the successful bidder on September 2, sign the contract with the winner on December 13, and Ithuba hand over on June 1 this year. However, this did not happen, and Tau only informed the NLC on December 20 that he was not ready to make up his mind about who the winner was. He also sought advice on the means to ensure that the National Lottery continues to operate on a temporary licence. 'On 21 December 2024, the minister issued a media statement, which stated that he was aware that the country and the applicants were anxiously awaiting his decision, but he was mindful of the complexity and gravity of the issues that must be considered,' Potterill said. In the statement, Tau expressed concern that his rushed decision might have regrettable consequences and continued to wait for the advice from the board, which only came on February 10, saying the period between January and June 2025 was not sufficient for proper selection and other processes that would follow. It then recommended that the appointment be done on May 31, 2026, the advice that Tau conveyed to the bidders. 'On 24 February 2025, Wina Njalo indicated to the minister that for it to make an informed decision, it required clarity on the minister's reasons for the proposed extension,' the judge said. The minister responded in March, saying it would be 'inappropriate to disclose these issues now as disclosure would prejudice the proper adjudication of the bids', but immediately published the temporary licence. This led to Wina Njalo raising a concern that the temporary licence was going to favour Ithuba. Tau backed down and released the reason for seeking the extension, which was that he had not made up his mind. 'On 30 March 2025, Wina Njalo wrote to the minister proposing a consent order to formalise the minister's new target date to avoid an urgent hearing. 'On 1 April 2025, the minister responded to Wina Njalo stating that he could not provide an unequivocal undertaking,' the judge said.
IOL News
24-05-2025
- Business
- IOL News
Who will be the new operator of the National Lottery after court ruling against Ithuba?
Trade, Industry and Competition Minister Parks Tau has been forced by the High Court to appoint Ithuba's replacement as the operator of the National Lottery. Image: Independent Media Archives Trade, Industry and Competition Minister Parks Tau will on Wednesday announce a new company to operate the National Lottery, after the Gauteng High Court, Johannesburg, rejected his attempt to extend Ithuba Holding's contract to May 31 next year under a temporary licence. Tau wanted to extend Ithuba's contract despite that it was due to expire on May 31. Delivering judgment on the case brought before him by one of the bidders, Wina Njalo Proprietary Limited, Judge Sulet Potterill said on May 21 that Tau was acting unconstitutionally and unlawfully in delaying choosing a new company to succeed Ithuba in the operation of the National Lottery. Ithuba's contract started in June 2015. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Next Stay Close ✕ 'The minister is ordered to determine a successful applicant for the fourth National Lottery Licence by no later than 28 May 2025. 'The minister must negotiate a licence agreement by no later than 28 May 2025,' read the court order. Trade, Industry and Competition spokesperson Bongani Lukhele said eight companies were shortlisted for the contract, but declined to name them, saying the list 'has not been officially released'. However, Judge Potterill suspended his order for five months to give a successful bidder enough time to prepare for the takeover. This would require acquiring equipment and substantial infrastructure totalling hundreds of millions of rand. The winner would have to look for funding from businesses. The judge also ordered Tau, the National Lotteries Commission (NLC), and Ithuba Lottery to pay legal costs for Wina Njalo's three counsels. The judge established that a newcomer would have to establish the infrastructure, including manufacturing and transporting terminals across the country. Wina Njalo approached the court after learning that Tau intended to extend the contract for 12 months, despite that the bid evaluation, adjudication committee, and independent audit concluded their work of selecting the front runners on August 31 of last year. Initially, Tau was supposed to announce the successful bidder on September 2, sign the contract with the winner on December 13, and Ithuba hand over on June 1 this year. However, this did not happen, and Tau only informed the NLC on December 20 that he was not ready to make up his mind about who the winner was. He also sought advice on the means to ensure that the National Lottery continues to operate on a temporary licence. 'On 21 December 2024, the minister issued a media statement, which stated that he was aware that the country and the applicants were anxiously awaiting his decision, but he was mindful of the complexity and gravity of the issues that must be considered,' Potterill said. In the statement, Tau expressed concern that his rushed decision might have regrettable consequences and continued to wait for the advice from the board, which only came on February 10, saying the period between January and June 2025 was not sufficient for proper selection and other processes that would follow. It then recommended that the appointment be done on May 31, 2026, the advice that Tau conveyed to the bidders. 'On 24 February 2025, Wina Njalo indicated to the minister that for it to make an informed decision, it required clarity on the minister's reasons for the proposed extension,' the judge said. The minister responded in March, saying it would be 'inappropriate to disclose these issues now as disclosure would prejudice the proper adjudication of the bids', but immediately published the temporary licence. This led to Wina Njalo raising a concern that the temporary licence was going to favour Ithuba. Then Tau backed down and released the reason for seeking the extension, which was that he had not made up his mind. 'On 30 March 2025, Wina Njalo wrote to the minister proposing a consent order to formalise the minister's new target date to avoid an urgent hearing. 'On 1 April 2025, the minister responded to Wina Njalo stating that he could not provide an unequivocal undertaking,' the judge said.
