By Akani Nkuna
Despite objections, Trade, Industry and Competition Minister Parks Tau has awarded fourth National Lottery and Sports Pool Licence to Sizekhaya Holdings (RF) (PTY) Ltd.
This follows the successful completion of negotiations with the preferred bidder, as confirmed by the National Lotteries Commission.
“As I indicated previously, I intended to announce the successful bidder on 28 May 2025 provided that the licence agreement negotiations with the preferred bidder were successfully concluded,” Tau said in a statement on Wednesday.
He expressed disappointment that the matter has already led to litigation and a ruling by the High Court over a one-year temporary licence. The minister said he was currently seeking legal advice with the intention of appealing the court’s findings and orders.
“With due respect to the honourable High Court, my announcement is the result of my undertaking made to the bidders and the court before the hearing of the application,” the minister said.
Tau further said that he looked forward to a strong partnership between his department and the National Lottery Commission as well as increased support for beneficiaries.
Meanwhile, the Economic Freedom Fighters which opposed the awarding of the licence to Sizekhaya Holdings from the onset over concerns about transparency, possible conflict of interest and political inference, has condemned the appointment.
Party spokesperson Sinawo Thambo said in a statement that the decision reinforced its view that Tau was unfit to oversee and protect one of the country’s key public institutions.
“Minister Tau’s refusal to listen, refusal to appear before Parliament and decision to proceed with this appointment anyway represents a complete betrayal of his constitutional responsibilities,” he said.
“Instead of ensuring fairness, transparency and compliance with the Lotteries Act, he has compromised a public asset by awarding a contract worth over R180 billion over the next eight years to benefit the ANC’s cronies in a clear case of state capture.”
According to Thambo, serious concerns have emerged over the integrity of the NLC bid process, with revelations that some members of the bid committee have links to Goldrush.
These ties reportedly include personal attendance at Goldrush-hosted events and directorships in companies that operate its gambling machines.
Thambo further noted that Goldrush co-owner Sandile Zungu has been actively involved in internal ANC political contests and maintains a close relationship with former president Jacob Zuma, now leader of MK Party.
Whilst co-owner Moses Tembe is also known to be a strong ANC ally.
“… Goldrush Group has publicly admitted to being in the process of expanding its operations, indicating that it does not currently have the full technical and operational capacity to run the National Lottery,” Thambo reiterated.
“This directly contravenes Section 13(2)(b)(i) of the Act, which requires bidders to have sufficient capacity to operate the Lottery effectively.”
Thambo accused Tau of betraying his constitutional duties by disregarding repeated calls for transparency and accountability in the awarding of the National Lottery licence.
He criticised the minister’s refusal to engage with Parliament and his decision to move forward with the appointment despite serious concerns, claiming that the R180 billion contract has been handed over to individuals aligned with the ANC in what he described as a blatant act of state capture.
The party has written to Portfolio Committee on Trade, Industry and Competition chairperson Mzwandile Mesina again, requesting that Tau to ordered to account for the serious concerns surrounding the National Lottery licensing process.
It wants answers on the the process followed in selecting Sizekhaya as the operator, the minister’s failure to address the flagged conflicts of interest and political exposure, whether legal advice was sought in light of Sizekhaya’s eligibility or lack thereof, and Tau’s justification for proceeding despite the pending legal matters and previous
correspondence raising these issues.
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