KZN kings hit the jackpot: Moses Tembe and Sandile Zungu’s Sizekhaya Holdings take over lottery from Ithuba

SIZEKHAYA Holdings, linked to KwaZulu-Natal businessman Moses Tembe and Amazulu Football Club owner, Sandile Zungu, has been announced as the new lottery operator, effectively taking over from Ithuba, who managed the lottery since 2015.

Sizekhaya's licence is valid for eight years 

Earlier on Wednesday, Department of Trade, Industry and Competition (DTIC) Minister Parks Tau said the National Lotteries Commission (NLC) submitted a report on May 26 confirming successful negotiations with Sizekhaya Holdings, the preferred bidder supported by the Goldrush Group, its part owner. 

Who is Sizekhaya Holdings?

Gauteng-based Sizekhaya Holdings is led by a consortium that includes Tembe and Zungu. Zungu has also been linked to the African National Congress, having previously run for the KZN chairperson post in 2022 and then withdrawing from the race. 

Legal woes

Tau said that despite the awarding of the licence, the process has already become the subject of litigation and a judgment of the High Court.

I am seeking legal advice to appeal against the judgment’s findings and orders, and I reserve all my rights concerning this judgment. 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.

Calls for transparency

Economic Freedom Fighters (EFF) also slammed the awarding of the license to Sizekhaya Holdings, accusing the minister of awarding a contract worth over R180 billion over the next eight years to benefit the ANC’s cronies.

"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.

"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".

Meanwhile, Build One South Africa (BOSA) has also urged the minister to publish the names of all adjudicators and consultants involved, disclose any conflicts of interest, and provide Parliament with a full report on how the bids were evaluated and scored.

“The public has a right to know how this critical national decision was made, and whether the process was fair, impartial, and free from political interference”, BOSA Deputy Leader, Nobuntu Hlazo-Webster said.

BOSA added that "this decision raises serious red flags about the integrity of the procurement process and further entrenches the public perception that ANC-linked individuals continue to benefit from state contracts."

The Democratic Alliance's Toby Chance said the party will scrutinise the new operator to ensure all has been done above board and will continue to hold the Lotteries Commission to account in the interests of South Africans.