By Thapelo Molefe
The Portfolio Committee on Trade, Industry, and Competition has endorsed minister Parks Tau’s cautious approach to awarding the fourth National Lottery Licence.
This follows the minister’s weekend announcement of a postponement in the decision, indicating the need to ensure compliance with the Lotteries Act (Act 57 of 1997) and uphold the integrity of the licensing process.
Committee Chairperson Mzwandile Masina endorsed Tau’s decision to scrutinize bids for the National Lottery Licence thoroughly.
“The committee fully supports the Minister’s statement that further work will be done to ensure the credibility of this process, which has faced public scrutiny in the past,” Masina said.
He encouraged the minister to explore alternative options if awarding the licence before the current one expires on 31 May 2025 proves unfeasible.
“We urge the Minister to consider measures such as issuing a temporary licence under Section 13B of the Lotteries Act or exploring a ‘State-led’ lottery as outlined in Section 13A, among other options,” he added.
The committee underscored the importance of due diligence given the National Lottery’s complexity and its critical role in supporting vulnerable communities and organisations.
“This makes due diligence essential,” Masina said.
The minister’s commitment to fairness, transparency, and legal compliance was acknowledged by the committee, which also emphasized the need to prioritize social responsibility and the advancement of historically disadvantaged groups.
Masina stressed the importance of a smooth transition to the new operator, avoiding disruptions that could negatively impact beneficiaries.
“Sufficient time for handover must be provided to allow for setup, testing, and other technical work. Any efforts by the ministry should aim to minimise any period without an active operator,” he said.
The committee also commended the minister’s insistence on ensuring no political party or office-bearer holds financial interests in any applicants.
“We are confident that input from Portfolio Committee meetings will be considered without interference, particularly on matters of conflict of interest, which have been raised repeatedly,” Masina concluded.
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