The Economic Freedom Fighters (EFF) believes Sizekhaya Holdings is not ready to run the country’s lottery. Apart from allegations of political ties and lack of transparency on the selection process, the party is calling for Department of Trade, Industry and Competition (DTIC) Minister Parks Tau to be hauled before the committee to answer questions on why Sizekhaya was selected.
On Wednesday, Tau announced his department’s decision to award the Fourth National Lottery and Sports Pool Licence to Sizekhaya, a company with ties to KwaZulu-Natal businessmen, Moses Tembe and Sandile Zungu.
Tembe, a well-known businessman, is also the co-chairperson of the KZN Growth Coalition. He is also the father of Nelli Tembe, who fell to her death from the Pepper Club Hotel balcony in April 2021.
While Zungu is the current owner of the AmaZulu Football Club and 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. Sizekhaya’s licence is valid for eight years.
In a letter to the Portfolio Committee on Trade, Industry and Competition, the EFF’s Sinawo Thambo highlighted possible political influence and conflicts of interest regarding Sizekhaya’s takeover from Ithuba.
“This entity is a subsidiary of the Goldrush Consortium, which is its principal and majority shareholder, whose involvement we have previously flagged as deeply problematic and legally questionable,” he said. Regarding political exposure, Thambo said there were multiple conflicts of interest.
“Sandile Zungu and Moses Tembe are politically aligned with the African National Congress (ANC) and former President Jacob Zuma of the MK Party,” he said.
The EFF slammed Tau’s failure to address issues raised about Sizekhaya. The party wants Tau to appear before the committee to answer questions about his failure to address flagged conflicts of interest and political exposure. “The Committee must act decisively to uphold its constitutional duty as the credibility of the National Lottery and the integrity of Parliament are at stake,” he said.
Now former lottery administrator, Ithuba Holdings says its legal team is considering taking legal action following the decision by the DTIC the National Lotteries Commission (NLC).
