By Johnathan Paoli
Following the Economic Freedom Fighters threatening last week to go to court over the awarding of the National Lottery licence, its lawyers have now written a letter demanding that Trade, Industry and Competition Minister Parks Tau provide a written response confirming that no final award be made to Gold Rush.
The new operating licence is meant to kick in at the end of the month.
“We will seek personal and punitive cost orders against public officials who are found to have acted unlawfully. The public purse should not be prejudiced because of this clearly unlawful conduct which the minister and department has refused to categorically deny and rule out,” attorney Angelike Charalambous said, acting on behalf of the EFF.
The Minister has until Wednesday, 21 May, to respond or face urgent court action.
At the heart of the EFF’s concerns is the announcement that the Gold Rush Consortium, led by high-profile KwaZulu-Natal businessmen Moses Tembe and Sandile Zungu, has emerged as the preferred bidder to operate the National Lottery from mid-2025 to 2033.
The consortium is reportedly poised to receive a contract valued at over R180 billion.
According to EFF spokesperson Sinawo Thambo, the party has uncovered “disturbing evidence” of conflicts of interest within the National Lotteries Commission’s bid evaluation panel.
One panel member, Thiran Marimuthu, is said to have close personal and professional ties to Gold Rush, including attendance at the consortium’s anniversary last year.
Another panelist, Anne-Marie Pooley, reportedly has a direct financial interest in a Pretoria venue hosting Gold Rush gaming machines.
“These associations compromise the impartiality of the bidding process and raise legitimate concerns about collusion and procedural manipulation. Minister Tau’s silence and lack of transparency are deeply concerning,” Thambo said.
Further, the EFF has called attention to section 13(2)(b)(iv) of the National Lotteries Act, which explicitly disqualifies any bidder with direct financial links to political parties or office bearers.
Zungu, a former contender for the ANC’s KwaZulu-Natal chairmanship, and Tembe, known for his longstanding support for the ANC, are cited by the EFF as politically exposed individuals, making their bid legally problematic.
In an earlier letter to Mzandile Masina, Chairperson of the Parliamentary Portfolio Committee on Trade, Industry and Competition, the EFF formally requested that Minister Tau be summoned before Parliament to explain the selection process.
The party has demanded that no public announcement of a licence award be made until the minister has answered key questions under oath.
“These political connections raise legitimate doubts over whether the consortium meets the legal requirements of neutrality and operational readiness. This process reeks of elite capture and patronage,” Thambo said.
The EFF is particularly alarmed by the risk of disruption to the Lottery’s community development functions.
With the current operator, Ithuba Holdings, set to cease operations at the end of May, the incoming licence holder would require at least six months to implement complex infrastructure, including secure digital platforms and regulatory systems.
Thambo said the delay caused by this process would jeopardise critical funding for education, youth empowerment and non-profit organisations.
The EFF highlights Gold Rush’s own public admission of expansion plans, arguing that the consortium lacks the full operational capacity currently required by law to run the National Lottery effectively.
Thambo described it as a test of the country’s democracy, stressing that as a public institution, the National Lottery must serve the people.
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