Sizekhaya’s Lotto future uncertain after court sets aside licence award

Ask AI 1minThe National Lottery will continue operating under Sizekhaya Holdings despite a court ruling setting aside the awarding of its licence. Minister Parks Tau has 12 months to reconsider the decision, raising questions about the future of the lottery operator.

The National Lottery will continue operating as normal despite a court ruling setting aside the awarding of its licence to Sizekhaya Holdings.

The ruling follows legal challenges by unsuccessful bidders Ithuba Lottery RF and Ringeta Consortium RF, which challenged the decision to award Sizekhaya the Fourth National Lottery and Sports Pools Licence.

The court found fault with the process followed by Trade, Industry and Competition Minister Parks Tau, particularly the use of a Ministerial Committee to reassess the bids outside the original tender process. The award was set aside and referred back to Tau for reconsideration within 12 months.

For now, it will be business as usual for Lotto players, with ticket sales, scheduled draws and prize payments continuing under Sizekhaya Holdings.

The court suspended its order to allow the company to continue operating while the Minister reconsiders the licence award.

Tau has 12 months to review the decision and determine whether Sizekhaya should retain the licence or whether another bidder should be appointed. If a new operator is selected, a further six months has been set aside to allow for the transition and ensure that lottery operations are not disrupted.

The Economic Freedom Fighters (EFF) has welcomed the judgment, saying it vindicates the party’s longstanding opposition to Sizekhaya’s appointment.

In a statement issued on Monday, the party said it had repeatedly raised concerns about alleged conflicts of interest involving members of the National Lotteries Commission’s evaluation structures and their alleged ties to Goldrush Consortium, a major shareholder in Sizekhaya Holdings.

“The EFF has been vindicated in its consistent opposition to this appointment and its efforts to expose the serious irregularities and conflicts of interest surrounding the awarding of this multi-billion-rand licence.

“Sizekhaya Holdings is a company in which the Goldrush Consortium is a principal and majority shareholder. The EFF objected to its appointment because of documented conflicts of interest involving members of the National Lotteries Commission’s evaluation structures who had personal and financial ties to Goldrush.”