Goldrush Group, a major stakeholder in the company which has just won the tender to run the South African National Lottery, has addressed public concerns around potential conflicts of interest.
The bidding contest to manage the South African National Lottery has been mired in controversy throughout the process. Much of the public concern related to allegations that Ithuba Holdings, the current licence, was too closely linked to government officials.
Sizekhaya Holdings’ subsequent win in the tender process has not dampened these concerns, however. Similar to Ithuba, the company’s alleged close connections to South Africa’s Deputy President, Paul Mashatile, have garnered attention.
Goldrush Group, a 50% shareholder in the Sizekhaya consortium, has now attempted to address concerns and provide more clarity around the shareholding in the consortium and the political or legal involvement of relevant people.
Alongside Goldursh, Bellamount Gaming Ltd will be a 5.6% stakeholder in Sizekhaya after government shares are issued. The company in turn counts two individuals, Moses Tembe and Khumo Bogatsu, as Directors – the latter of whom is Deputy President Mashatile’s sister-in-law.
Goldrush has acknowledged that Khumo is an advocate of the High Court, and will have an indirect 1.6% shareholding in Sizekhaya. The firm has also acknowledged Khumo’s existing shareholding in Bellamount and investigations into her due to her relation-by-marriage to the Deputy President.
Tembe, meanwhile, alongside another individual and shareholder, Sandile Zungu, do not have any political connections or roles, according to Goldrush. Tembe is an experienced gaming businessperson in South Africa, having been Chairman of Phumelele Gaming and Leisure Ltd, Deputy Chairman of Gold Circle Horse Racing and Betting, and a Board Member of Tsogo Sun.
Zungu is also ‘not an active political office bearer’ according to Goldrush, although he is a former Chairman of the group. He is currently the Chairman of Zungu Investments, and will hold an indirect 5.6% share in the consortium.
Finally, as well as noting the prior existing business links of some of the individuals involved in the consortium and Khomo’s political connections, Goldrush has also acknowledged that it does have some familiarity with members of the lottery Evaluation Committee.
The firm states that Thiran Marimuthu has ‘interacted professionally’ with Goldrush’s senior management team while working at the Gauteng Gambling Board, the regulator of gambling in Gauteng Province.
Anne Marie Pooley, another Evaluation Committee member, also had business links with the company when operating a gaming establishment in Gauteng Province, using its Limited Payout Machines.
Despite facing some public and media scrutiny over connections, Goldrush remains adamant that neither it nor Sizekhaya played a role in the appointment of members of the bid evaluation committee for the licence.
The consortium will take the helm of the National Lottery as well as the Sports Pools on 1 June 2026, and will manage it for the next eight years. In the meantime, I will continue to operate the lottery on a temporary licence – something which has also proven controversial.