Ithuba Lottery has filed an urgent application aimed at delaying the implementation of the national lottery's fourth licence awarded to Sizekhaya.

This legal pursuit comes as Ithuba challenges the entire award process, alleging serious irregularities and conflicts of interest that compromise the integrity of the selection criteria.

The legal action, filed in the North Gauteng High Court in Pretoria, accuses Minister Parks Tau of abandoning key scoring criteria in favour of Sizekhaya and prematurely engaging in negotiations with the company before the bidding process concluded.

Following media reports suggesting political ties between Sizekhaya and influential figures, Ithuba insists that these connections were not adequately scrutinised during the bidding, raising concerns over the fairness of the process.

Ithuba Lottery, a sister company to Ithuba Holdings, points to Minister Tau’s lack of thorough due diligence in the awarding process, highlighting that his rationale for awarding the licence in such a manner blatantly disregards the fundamental requirements laid out for prospective bidders. Their statement criticises the minister's decision as indicative of inadequate investigation efforts regarding Sizekhaya's alleged political affiliations, risking the integrity of the national lottery system

This legal challenge is not an isolated affair; it mirrors a similar application filed by Lekalinga, another unsuccessful bidder.

The urgent application is set down to be heard on 7 October.

Why Parks Tau awarded Sizekhaya the national lottery licence amid controversy

Tau explained that when he awarded Sizekhaya the licence to operate the R180 billion five-year national lottery contract, to Sizekhaya, there was no indication before the award that the consortium had political connections.

Tau noted, however, that media reports later indicated that the Deputy President Paul Mashatile’s sister-in-law was an indirect shareholder in Sizekhaya.

Two other individuals connected to Sizekhaya, prominent KwaZulu-Natal businesspeople Moses Tembe and Sandile Zungu, were also linked to the Deputy President, Tau said he was told.

Tau added in a footnote that this information came to light after the bid was awarded, and the National Lotteries Commission (NLC) was instructed to investigate on June 24. The investigation seems to be incomplete.

Meanwhile, Sizekhaya Holdings dismissed allegations of impropriety and political influence in July, calling the claims baseless. “We, therefore, welcome… Tau’s commitment to investigate any perceived conflicts as Sizekhaya has done absolutely nothing wrong,” the consortium said.

Also in July, Tau said he had “confidently discharged to the best of my abilities” his responsibilities in awarding the licence.

In his conclusion in his papers, Tau said: “This was a close and tight finish. In my view, Sizekhaya pipped the others to the post.”

“Pursuant to the NLC’s advice, I signed the licence agreement and announced that the licence had been awarded to Sizekhaya,” Tau wrote.

Tau cited factors including Sizekhaya’s knowledge, experience, compliance with the Act, financial resources, local economic development, social responsibility, and broad-based black economic empowerment (B-BEE) in ownership and management.

sinenhlanhla. masilela@iol.co.za

IOL News

Get your news on the go, click here to join the IOL News WhatsApp channel.