Tau Stands by Sizekhaya Amid National Lottery Controversy

South Africa’s highly anticipated fourth national lottery licence continues to spark debate, but Minister of Trade, Industry and Competition Parks Tau has publicly defended his decision to award the contract to Sizekhaya Holdings.

In a detailed affidavit filed at the Gauteng High Court in Pretoria, Tau explained his reasons in response to legal challenges by losing bidders, including Lekalinga and Ithuba Lottery.

Why Sizekhaya Stood Out

Tau cited Sizekhaya’s “well-balanced bid,” strong technology partners, and high projected revenue as key factors. The consortium also impressed with its plans to rejuvenate current lottery games and expand marketing efforts.

According to Tau, the bidding process was competitive: “Giya Games, Lekalinga, and Umbelelo were ranked the lowest, while Bosela, Ithuba Lottery, Ringeta, Sizekhaya, and Wina Njalo were neck and neck,” he wrote. Sizekhaya ultimately “pipped the others to the post.”

Addressing Political Concerns

The decision has drawn criticism over potential political interference. Allegations link Sizekhaya shareholders to the ANC and Deputy President Paul Mashatile, particularly through Mashatile’s sister-in-law, Khutso Bogatsu. Tau confirmed he had instructed the National Lotteries Commission to investigate these connections.

Tau also explained why he overrode his advisory panels to set aside Ringeta’s bid. Ringeta, initially favored, had ties to the Batho Batho Trust, a known ANC donor. The quality assurance committee flagged that ANC MP Dr. Sibongiseni Dhlomo, a trustee of the trust, held a prohibited financial interest, which contravenes the Lotteries Act.

Critics Call for Accountability

The DA has voiced concerns about Tau’s reliance on the NLC to investigate, arguing that the evaluation and adjudication committees failed to identify Ringeta’s conflict of interest. “It is extremely concerning that the top candidate was part-owned by an ANC funding vehicle with a sitting ANC MP on its board,” said Toby Chance, DA spokesperson on Trade, Industry & Competition.

Tau and other respondents must file answering affidavits before trial dates are set, keeping the fate of South Africa’s fourth national lottery licence under intense scrutiny. Public debate continues, with social media buzzing over whether political influence played a role in awarding one of the country’s largest state tenders.

This decision not only tests South Africa’s procurement transparency but also highlights the delicate balance between innovation, competition, and accountability in the national lottery system.

{Source: IOL}

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