The months-long uncertainty around South Africa’s national lottery has finally been put to rest by Minister Parks Tau.
Tau was given an ultimatum by the Pretoria High Court to announce a winning bid for the tender by 28 May, after it ruled the Minister’s plans to first introduce a 12-month transition license invalid.
Sizekhaya Holdings will now officially take the lead of operating the African nation’s national lottery for the next eight years, taking over from the previous license holder Ithuba Holdings – which was embroiled in controversy together with the National Lottery Commission (NLC).
Clear future with a foggy past
Ithuba’s legacy will remain shrouded in allegations of close ties with government officials, which were stirred by the firm’s 10-year reign over the national lottery – an unprecedented extension over the allowed eight-year period.
The extension was at one point backed by the NLC itself, which argued that Ithuba must retain its license to make up for the crippling market conditions during COVID at the turn of the decade.
NLC staff are also no stranger to public scrutiny, with ex-leadership having properties seized by authorities due to allegations of lavish lifestyles funded through lottery proceeds. This took place during Ithuba’s tenure as the lottery operator.
The lack of trust in both the government and Ithuba led bidders for the new license to file a legal request with the Pretoria Court to intervene in Tau’s plans for a temporary 12-month license as soon as they were announced.
The main concern was that one of the contenders, ‘Ithuba Lottery’, shared the same name and six Directors with Ithuba Holdings. Media outlets then added more fuel to the fire after they later reported that Ithuba Lottery was Tau’s preferred choice for the temporary license.
A matter of perspectives
Perhaps to ease public pressure, the court then ordered Tau to drop his initial plans and announce the lottery operator for the next eight years straight away, which has now been officially named Sizekhaya Holdings.
Tau, however, insists that the announcement was made purely on his own initiative and has nothing to do with the outcry that preceded it.
“It is most unfortunate that this matter has already become the subject of litigation and a judgment of the High Court,” his statement read.
“I am seeking legal advice with a view to appealing against the judgment’s findings and orders, and I reserve all my rights concerning this judgment.
“With due respect to the Honourable High Court, my announcement is the result of my undertaking made to the bidders and the Court before the hearing of the application.”