The South African Lottery is switching operators and a recent RFP has resulted in a deal with Sizekhaya Holdings – a company which reportedly has ties to Deputy President, Paul Mashatile.
Amabhungane Centre for Investigative Journalism found that Bellamont Gaming – which is a shareholder of Sizekhaya – is partly owned by Khumo Bogatsu, who is the twin sister of Humile Bogatsu, Mashatile’s wife.
Despite denials from Mashatile’s office regarding involvement in the tender process, serious questions linger in regards to conflicts of interest.
It was in May that the company emerged as the winner from a total of eight bidders in the tender, which were examined by Parks Tau, Minister of Trade, Industry and Competition.
The lottery said at the time: “I appreciate that this has been an enormous and complex endeavour. I wish to thank the Board and staff of the NLC and all those who were involved in this arduous exercise.”
Tau’s choosing of Sizekhaya Holdings was presumed to be most likely the result of a comprehensive review of the company’s financial statements, compliance policies and long-term operational strategies.
Taking over from the previous license operator, Ithuba Holdings, Sizekhaya’s new partnership is valued at an approximate R180bn and is guaranteed to last a minimum of eight years.
Ithuba Holdings first took over the licence back in 2015, with its tenure lasting an unprecedented 10 years after being granted an extension by Tau’s predecessor in 2023. Ithuba’s incumbency was further extended when it was given a temporary one-year licence to fill the gap until Sizekhaya takes over in June 2026.
Although the Lotteries Act bans direct political financial interests influencing contracts, critics claim the minister overlooked indirect links approving the bid such as financial ties involving Mashatile’s relatives.
Mashatile is said to share close ties with Moses Tembe, one of the businessmen behind Bellamont Gaming. Sources confirmed that Mashatile made several visits to Tembe’s Luthuli Kulu residence last year. Journalist Azarrah Karrim reported that Bellamont Gaming is directed by Tembe and Khumo Bogatsu.
Karrim accused both the National Lottery Commission and DTIC of being evasive in responding to any questions and lacking transparency.
She said: “That should be basic due diligence. It really wasn’t hard to find the President’s sister in law in these companies. The public deserves clarity on who truly stands to benefit.”