Parks Tau, the Minister of Trade and Industry, has disclosed his reasons for awarding the fourth lottery license to Sizekhaya Holdings, the announcement was made describing the decision as a “close race and a tight finish.”
In an affidavit submitted to the Gauteng High Court in Pretoria, Minister Tau stated that Sizekhaya “pipped the others to the post” due to its well-balanced bid, impressive technology partners, and a projected revenue that was “suitably ambitious, yet credible.” He emphasized that Sizekhaya’s contributions to the National Lottery Distribution Trust Funds (NLDTF) are expected to be the highest among all bidders.
While Tau acknowledged concerns about the political connections of some of Sizekhaya’s shareholders, particularly in relation to Deputy President Paul Mashatile, he indicated that he instructed the National Lotteries Commission (NLC) to investigate to investigate the alleged connections. “I had to provide my reasons for selecting Sizekhaya due to two court challenges launched by Lekalinga and Ithuba Lottery, the latter currently operating the lottery under a temporary license,” Tau explained.
Minister Tau revealed that Lekalinga was among the lowest-ranked bidders, while Ithuba Lottery was deemed the runner-up. He disclosed that he overruled his advisory panels to reject a bid from Ringeta due to its connections with the Batho Batho Trust, a known donor to the ANC. “Dr. Sibongiseni Dhlomo, an ANC MP, was flagged as a trustee of the Batho Batho Trust, raising concerns about compliance with the Lotteries Act and the RFP terms,” Tau noted.
The quality assurance process began only after the NLC had made its recommendations, with Ringeta initially ranked first. Minister Tau emphasized his commitment to a thorough evaluation, stating, “I was not prepared to forgo the quality assurance process.”
A ministerial committee, including members of the quality assurance committee and expert consultants, was established to reassess the bids. Their report, was finalized, recommended Sizekhaya as the preferred bidder and Ithuba Lottery as the reserve bidder.
While Sizekhaya’s bid was deemed the most well-balanced, Minister Tau acknowledged criticisms regarding its marketing spend on new games. However, he praised its broader marketing strategy and plans to rejuvenate existing lottery games.
The court review of this decision is expected to take time. Aggrieved bidders are anticipated to file further affidavits based on the minister’s statements, likely raising concerns about Sizekhaya’s political connections. The minister and other respondents will then need to respond before trial dates are set.
