EFF Seeks Judicial Review Over South Africa Lottery License Award to Goldrush
South Africa’s Economic Freedom Fighters (EFF) are challenging the recent decision by Minister of Trade, Industry and Competition, Parks Tau, to award the National Lottery license to a company linked to politically connected individuals. The party alleges the decision violates key provisions of the National Lotteries Act and undermines public trust.
Political Links and Conflicts of Interest Raised
The EFF has sharply criticized Minister Parks Tau for granting the lucrative National Lottery license to Sizekhaya Holdings, whose primary shareholder is the Goldrush Consortium. According to the party, this move comes despite prior warnings about conflicts of interest and political affiliations involving the company’s leadership. The EFF said:
“Minister Tau is not fit to safeguard one of the country’s most important public institutions”
EFF claims to have alerted both the Minister and Parliament’s Portfolio Committee on Trade and Industry in formal letters. The party highlighted links between members of the National Lotteries Commission (NLC) bid committee and Goldrush, including attendance at company events and shared directorships in entities housing Goldrush-operated gaming machines.
Violations of the National Lotteries Act Alleged
At the core of the EFF’s complaint is an alleged breach of Section 13(2)(b)(iv) of the National Lotteries Act. This clause prohibits issuing a license to any entity with political ties. Goldrush’s shareholders include Sandile Zungu and Moses Tembe, both of whom are described by the EFF as politically exposed and closely aligned with the ruling ANC and its affiliates.
In addition, the EFF cited Section 13(2)(b)(i) of the Act, which mandates that license recipients must have the operational capacity to manage the lottery. According to the EFF, Goldrush has publicly acknowledged ongoing expansion efforts, suggesting it may not yet meet that standard.
Accusations of Political Favoritism
The EFF frames the decision as an act of state capture, accusing Minister Tau of prioritizing party loyalty over public interest. The contract is reportedly worth over R180 billion for the eight-year license period. The party also criticized the Minister for not attending parliamentary hearings on the issue.
“Instead of ensuring fairness, transparency, and compliance with the Lotteries Act, he has compromised a public asset.”
Legal Action Under Consideration
Given the gravity of the accusations, the EFF is now exploring legal avenues. The party confirmed it is consulting with its legal counsel about initiating a judicial review. Possible actions include seeking an interdict to halt the execution of the contract. The EFF concluded:
“The National Lottery is meant to serve the people, not the pockets of the politically connected”
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