By Lehlohonolo Lehana.
Trade, industry and competition minister Parks Tau has announced Sizekhaya Holdings as the fourth national lottery and sports pool license holder.
The Lottery is currently operated by Ithuba Holdings, whose licence expires on 31 May. Due to delays in announcing the successful bidder, a temporary licence awarded to Ithuba Lottery, a sister company of Ithuba Holdings, will kick in on 1 June. Thereafter, Sizekhaya is expected to take over for a period of eight years.
But there is still uncertainty over when Sizekhaya’s licence will start. The National Lotteries Commission (NLC) has launched an urgent application to change an order by the high court in Johannesburg limiting the duration of the temporary licence to five months.
The NLC says that unless the order is changed to allow the temporary licence to remain valid for a full year, Lottery sales will stop on Sunday, 1 June. Otherwise, it will not be financially feasible for Ithuba Lottery. Sizekhaya needs at least nine months to prepare before it can take over the Lottery.
The licence has been the subject of extensive litigation in the Gauteng High Court, initiated by one of the bidders, Wina Njalo.
In a statement on Wednesday, Tau said his announcement comes after he had received a report from the National Lotteries Commission (NLC) regarding the satisfactory conclusion of negotiations with the preferred bidder.
However, he noted that it was “most unfortunate” that this matter has already become the subject of litigation and a judgment of the High Court.
“I am seeking legal advice with a view to appealing against the judgment’s findings and orders, and I reserve all my rights concerning this judgment.
“With due respect to the High Court, my announcement is the result of my undertaking made to the bidders and the Court before the hearing of the application.”
Tau said this ends a long and difficult process of evaluating eight applications for the fourth licence.
Meanwhile the Economic Freedom Fighters (EFF) has expressed concerns that the Gold Rush Consortium has been selected as the preferred bidder.
The consortium is led by KwaZulu-Natal businessmen Moses Tembe and Sandile Zungu.
Goldrush Group, a subsidiary of JSE-listed Goldrush Holdings, is a 50% shareholder in Sizekhaya.
EFF noted that Thiran Marimuthu, a member of the National Lotteries Commission (NLC) bid evaluation committee, has close professional and personal connections to Gold Rush.
Another committee member, Anne-Marie Pooley, is listed as the sole director of Route 515 Pub and Grill in Pretoria, a venue that hosts Gold Rush gaming machines. These relationships undermine the impartiality of the bidding process and create the risk of collusion and procedural manipulation, the party added.
The party condemned Tau’s refusal to provide clear answers to direct questions, while holding private consultations with the NLC, casting serious doubt on the transparency and legality of the process.