Sizekhaya Holdings has firmly denied any allegations of wrongdoing as questions continue to hang over its victory in the latest South African National Lottery licence contest.
The consortium was awarded the eight-year licence in June after a months-long tender which saw questions repeatedly raised about the integrity of the process, largely due to alleged links between the former licence holder, Ithuba Holdings, and the government.
These concerns remain even after Ithuba was beaten in the tender, however. Sizekhaya will commence operations next year, with Ithuba filling the year-long gap in between. Meanwhile, allegations of close links between Sizekhaya and the government have now been made.
Chiefly, the shareholding of Khumo Bogatsu, the sister-in-law of South African Deputy President Paul Mashatile, has been criticised by political opponents and other interested stakeholders. Some politicians have even written to Parks Tau, Minister of Trade, Industry and Competition, who oversaw the licence competition, requesting clarity on the matter.
In response to the criticisms, Sizekhaya issued the following statement: “Sizekhaya is not guilty of any impropriety. Neither the Deputy President nor any other political entity or individual has a financial interest – direct or indirect – in our bid.
“As stated in Parliament on Tuesday, the Deputy President had no influence in the adjudication committee or the National Lotteries Board. Neither Bellamont Gaming nor Sizekhaya ever discussed our bid with the Deputy President.”
Shareholders in the consortium have issued similar denials while also seeking to provide clarity around the situation. Goldrush Gaming has been particularly vocal, issuing a statement earlier this week attempting to clarify things.
The company confirmed that Khumo Bogatsu, the Deputy President’s relative by marriage, is a Director of Bellamount Gaming Ltd, a 5.6% stakeholder in the consortium. It also confirmed that members of the lottery Evaluation Committee have been familiar with Goldrush and Bellamount on a professional basis prior to the tender process.
Regardless of the concerns around South African lottery integrity, the National Lottery Commission (NLC) is proceeding with business-as-usual. The NLC confirmed this week that it has appointed 10 new members of its Distribution Agency, its body charged with issuing grants and funding.
“With 10 distributing agency members appointed, the NLC will have the capacity to adjudicate applications and be able to meet the statutory time frames, including adjudicating applications within 150 calendar days” said NLC Commissioner, Jodi Scholtz.