Business

EFF Challenges Selection of Sizekhaya Holdings as New National Lottery Operator Amid Political Concerns

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3 months ago

May 29, 2025

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The Economic Freedom Fighters (EFF) have publicly challenged the decision to grant the Fourth National Lottery and Sports Pool Licence to Sizekhaya Holdings, citing concerns over political bias and a lack of transparency in the selection process.

On Wednesday, Minister of Trade, Industry and Competition, Parks Tau, announced that Sizekhaya Holdings will operate South Africa’s national lottery for the next eight years. However, this move has been met with skepticism and criticism, especially from the EFF, who question whether Sizekhaya is the right fit to manage this important national asset.

Political Connections Under Scrutiny

Sizekhaya Holdings is connected to prominent KwaZulu-Natal business figures Moses Tembe and Sandile Zungu. Tembe, a key figure in the KwaZulu-Natal Growth Coalition, is also known for the tragic death of his daughter Nelli Tembe in 2021. Zungu, owner of the AmaZulu Football Club, has ties to the African National Congress (ANC) and has previously engaged in local party politics.

These connections have fueled allegations from the EFF that political motives played a significant role in the selection process. Sinawo Thambo, representing the EFF, expressed deep concerns about conflicts of interest, highlighting the political affiliations of both Tembe and Zungu, and linking them to the ANC and former President Jacob Zuma.

Calls for Accountability and Transparency

The EFF is demanding that Minister Parks Tau appear before the Portfolio Committee on Trade, Industry and Competition to explain the rationale behind choosing Sizekhaya. The party argues that the minister has yet to address key issues raised about potential conflicts of interest and political exposure linked to the new operator.

“The integrity of the National Lottery and Parliament itself is at stake,” Thambo emphasized in a letter to the committee, urging decisive action to safeguard public trust.

Legal Pushback from Former Operator

Meanwhile, Ithuba Holdings, the outgoing lottery operator, has hinted at possible legal challenges. Their legal team is reportedly reviewing options following the decision, signaling a potentially protracted legal battle over the controversial licence award.

What This Means for South Africa’s Lottery System

This controversy shines a spotlight on the importance of transparency and impartiality in awarding licenses for major public enterprises. The National Lottery is a critical revenue source for numerous social causes and charities in South Africa, and questions about political interference could undermine public confidence.

As this story develops, all eyes will be on the parliamentary committee and the legal proceedings that may follow, which could reshape the future management of the lottery and influence broader conversations about governance and political influence in South Africa.