South African Trade Minister Defends Lottery Licence Award to Sizekhaya

Minister Describes a Competitive and Legal Process

Minister Tau told Parliament that he had inherited the process when he took office. At that time, Ithuba Holdings held a two-year extension on its licence. After the request for proposals went out in 2023, eight companies submitted bids. This was twice the number received during the previous licensing round.

He described the process as highly competitive, involving well-resourced applicants. Tau stressed that his department followed a clear, multi-step procedure with several review committees. He said the delay in announcing the winner was intentional, as he chose to investigate concerns rather than rush a decision. Tau said he made the final call based on fairness and legal compliance.

Committee Reviews and Conflict Allegations

National Lotteries Commission (NLC) Commissioner Jodi Scholtz outlined how the evaluation, adjudication, and quality assurance committees assessed the bids. She said the minister could not immediately make a decision because several issues required clarification. These included whether applicants who failed technical criteria could be disqualified and how Broad-based Black Economic Empowerment was handled.

Scholtz confirmed that the NLC reviewed allegations against two evaluation committee members. After a legal review, they found no conflict of interest. The quality assurance committee agreed with this conclusion. One of the losing bidders, Lekalinga, has since filed a court application to review the process.

Responding to Political Concerns

Some critics raised concerns about Sizekhaya’s leadership, pointing to connections between Sandile Zungu and Moses Tembe and political parties such as the ANC and MK Party. Scholtz said neither individual is classified as a political office-bearer under the Lotteries Act. She also said no evidence shows that any party has a direct financial interest in Sizekhaya or its shareholders.

She noted that other strong applicants, including Ithuba, Ringela, Wina Njalo, and Bosele, were close contenders. According to Scholtz, the final decision was difficult but made based on a full review of all applications.

Tau Commits to Transparency and Oversight

Minister Tau admitted the process wasn’t perfect, but he believed it was fair and thorough. He promised to share the full reasoning with Parliament once the court records are filed in July. He said he would not comment further to avoid interfering with ongoing legal action.

Tau closed by reaffirming that he had carried out his duties with integrity. He said he applied his mind to every detail to make what he believes is the best decision for the National Lotteries Commission and the country.