Sizekhaya Holdings denies allegations of impropriety in national lottery licence award
Sizekhaya Holdings has dismissed allegations of political influence in its recent award of the national lottery licence, asserting that the decision was based solely on the strength of its bid.
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Sizekhaya Holdings has dismissed allegations of impropriety and political influence that have surfaced after it was awarded the licence to operate the national lottery. The consortium said that the allegation that it was awarded the licence due to political connections was baseless.
Prominent KwaZulu-Natal businesspeople Moses Tembe and Sandile Zungu are among the shareholders in Sizekhaya Holdings, which was recently awarded a licence to operate the national lottery.
But this award has now been mired in allegations of political connections after it emerged that Deputy President Paul Mashatile’s sister-in-law, Advocate Khumo Bogatsu, is linked to the company. Parties in Parliament have written to the minister regarding the matter, demanding an investigation.
A statement issued by Tembe, who is chairman of Sizekhaya Holdings, asserted that the consortium won the licence based on the strength of its bid, its deep knowledge of gaming, and its pledge to elevate the lottery by generating more funds for the government, good causes, and players.
“Sizekhaya is not guilty of any impropriety. Neither the Deputy President nor any other political entity or individual has a financial interest – direct or indirect – in our bid. As stated in Parliament on Tuesday, the Deputy President had no influence in the adjudication committee or the National Lotteries Board. Neither Bellamont Gaming nor Sizekhaya ever discussed our bid with the Deputy President.”
Tembe explained that Bellamont Gaming, in which he and Bogatsu are directors, holds one of the smallest stakes – totalling 7% – in Sizekhaya. He explained that Bogatsu owns two percent, while Bellamont Investments owns five percent. He said he invited Bogatsu to join him in taking a stake in Sizekhaya based on her qualifications and much-needed experience to navigate the legal complexities of the industry. He said this led to the formation of Bellamont Gaming as a subsidiary of Bellamont Investments, which has been in business for years.
“The narrative that Zungu (Sandile) and I are controlling shareholders is unfounded. Sizekhaya is a very diversified consortium. As chairperson of the board, I happen to be the face of the company.”
He added that despite her relationship with Mashatile, Bogatsu is fully entitled to pursue any legitimate commercial interest. "Sizekhaya welcomes scrutiny intended to shed light on who we are and what we bring to the table. But we decry the baseless accusations, malicious rumour-mongering, mudslinging, and personal attacks on shareholders and directors that have grown in volume since we were announced as the winners.
"We, therefore, welcome the Minister of Trade Industry and Competition Parks Tau’s commitment to investigate any perceived conflicts as Sizekhaya has done absolutely nothing wrong."
DA spokesperson on Trade and Industry, Toby Chance, stated that they have written to the minister to institute an investigation into the matter. He warned the minister that, “Should the independent investigation reveal information that was willfully or negligently concealed during the evaluation and adjudication process, you will be duty-bound to review your decision to appoint Sizekhaya Holdings as the operator of the fourth licence.
“The National Lottery tender is worth an immense amount of money over the eight-year licence period – much of this is intended to support work for the public good. The National Lotteries Commission (NLC) is already subject to an SIU investigation concerning over a billion rand of public money.
“We cannot stand by and allow incompetence, malice, or a lack of diligence that could further mar the NLC’s record,” said his letter. Action SA MP Alan Beesley said the party was concerned with the allegations emanating from the recent awarding of the lottery licence. "The National Lotteries has been plagued with corruption for many years, and it appears this corruption is continuing unabated. The National Lotteries was meant to support good causes and the most vulnerable in our society but sadly continues to support the corrupt and political elite.
“As a member of SCOPA, I will be monitoring developments closely, and if need be, I will request the relevant role players in awarding the licence appear before SCOPA,” he said.