By Lehlohonolo Lehana.
Deputy president Paul Mashatile dismissed suggestions of political interference in the awarding of the lottery contract to Sizekhaya Holdings, which landed the lucrative licence to operate South Africa’s national lottery for eight years.
Sizekhaya was awarded the licence in May 28 this year after protracted delays.
Among Sizekhaya’s shareholders is Bellamont Gaming, a company co-owned and co-directed by Khumo Bogatsu – Mashatile’s sister-in-law – and Moses Tembe, the KwaZulu-Natal businessman who chairs Sizekhaya and seems close to Mashatile.
Bogatsu is the twin sister of Humile Mashatile. Mashatile and Humile were married in a lavish set of celebrations attended by the political and business elite in March 2023.
Bellamont Gaming was registered nine months later, in December 2023, with Tembe and Bogatsu as its founding and still only directors. Bellamont and consortium partners then registered Sizekhaya just days before last year’s February 3 deadline to contest the fourth national lottery licence.
Minister of Trade, Industry and Competition, Parks Tau, finally announced the award to Sizekhaya after protracted delays and what he called “this arduous exercise” of evaluating eight applications. The National Lotteries Commission (NLC), which answers to Tau, helps adjudicate licence bids.
The lottery licence is almost literally a licence to print money. The outgoing operator, Ithuba Holdings, reported a R7.28-billion turnover in 2024. Bogatsu and Tembe’s joint involvement adds to widespread fears that the politics of patronage may have intruded on the award process.
Sizekhaya confirmed Bogatsu held shares in Bellamont. It said Bellamont in turn was a “minority shareholder” in Sizekhaya and “a legally compliant gaming entity”.
Publicly available information records the Goldrush Group as Sizekhaya’s largest shareholder, with 50%, which will reduce to 40% when a stake is issued to a government entity in line with licensing conditions.
Goldrush is in turn 59.4% owned by JSE-listed Goldrush Holdings, whose shareholders include Mauritian-based Astoria Investments and local investors Jan van Niekerk and Piet Viljoen.
Mashatile has admitted that Tembe is his friend, but said he did not know he was doing business with his sister-in-law.
He dismissed suggestions of political interference in the awarding of the contract – saying only Tau had the powers to choose the winning bidder.
Earlier today, Tau assured MPs that allegations of conflicts of interest linked to the newly awarded lotto operator licence will be investigated.
Appearing before Parliament’s Portfolio Committee on Trade, Industry and Competition, Tau provided background on the process and challenges faced.
The minister stated that when he became minister in July, the third national lottery licence had already been extended for two years.
He described the tender process as highly competitive, calling it a “massive operation” that is “technically and legally complex”.
“As the honourable members would be aware, the second and third licences were subjected to substantial litigation. The fourth licence is proving to be the same.”
He emphasised that the Lotteries Act sets out clear criteria for the successful bidder.
The company must also be run by individuals who are not politically affiliated or public-office bearers, Tau highlighted.
NLC Commissioner Jodi Scholtz elaborated on the bidding process, which began in August 2023 and concluded with the licence announcement on 28 May.
She confirmed that investigations were conducted into Tembe and Sandile Zungu, both members of the Sizekhaya consortium with ties to the ANC and MK party.
Scholtz explained that after legal consultation, neither individual was considered an office-bearer, and therefore no “direct financial interest” to political parties was found.