Ithuba Challenges R180 Billion National Lottery Licence Awarded to Sizekhaya

A legal storm is brewing over South Africa’s national lottery. Ithuba Lottery has filed an urgent application in the North Gauteng High Court, aiming to delay the implementation of the R180 billion, five-year lottery licence awarded to Sizekhaya Holdings.

The move signals growing concerns about the integrity of the lottery awarding process, with Ithuba alleging serious irregularities and potential conflicts of interest that may have skewed the results.

Allegations of Irregularities

Ithuba’s legal papers claim that Minister Parks Tau abandoned key scoring criteria in favour of Sizekhaya, and that negotiations with the company began prematurely, before the bidding process officially concluded.

Social media and media outlets have amplified these claims, noting Sizekhaya’s potential political connections. Ithuba insists these ties were not properly scrutinized, raising questions about fairness and transparency in the process.

According to Ithuba, the minister’s due diligence was inadequate, particularly regarding reports of indirect political affiliations linked to Sizekhaya. This, the lottery operator argues, risks undermining public confidence in the national lottery system.

The legal challenge echoes a similar action by Lekalinga, another unsuccessful bidder, highlighting that dissatisfaction with the award is not unique. The urgent application is scheduled for 7 October.

Tau’s Defence: No Political Influence at the Time

Minister Parks Tau has defended the decision, explaining that there was no indication of political connections before awarding the licence to Sizekhaya.

He acknowledged, however, that media reports later suggested indirect links, including that Deputy President Paul Mashatile’s sister-in-law was a shareholder and that prominent KwaZulu-Natal business figures Moses Tembe and Sandile Zungu were connected to Sizekhaya.

Tau said the National Lotteries Commission was instructed to investigate these reports on 24 June, though the investigation remains incomplete.

In his statement, Tau emphasized that the decision was based on merit, citing Sizekhaya’s knowledge, experience, compliance with the Lotteries Act, financial resources, social responsibility, local economic development, and commitment to Broad-Based Black Economic Empowerment (B-BBEE).

“Sizekhaya pipped the others to the post,” Tau wrote, adding that he had discharged his responsibilities confidently and to the best of his abilities.

Sizekhaya Responds

Sizekhaya Holdings has denied any impropriety, dismissing allegations of political influence as “baseless.” In July, the consortium welcomed the minister’s commitment to investigate perceived conflicts of interest, maintaining that it had done nothing wrong.

Public and Industry Reaction

The awarding of the R180 billion contract has sparked heated debate on social media and in business circles. Many South Africans question whether political connections influenced a process meant to be transparent, while others stress that the focus should remain on merit and capacity to run the national lottery efficiently.

Legal experts note that the court’s decision on 7 October could set a precedent for how large-scale public contracts are awarded and challenged, potentially reshaping accountability standards in South Africa’s procurement landscape.

A Watchful Eye on South Africa’s Lottery System

The Sizekhaya saga underscores the delicate balance between political influence, corporate capability, and public trust. With billions at stake, the eyes of the nation and the courts are firmly fixed on Pretoria.

Whether Ithuba succeeds or not, this challenge serves as a reminder that transparency, fairness, and due diligence are not just procedural requirements, they are central to the credibility of public institutions.

{Source: IOL}

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