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The awarding of South Africa’s National Lottery licence to the Gold Rush Consortium has sparked political debates, with opposition parties accusing the government of backdoor dealings. The eight-year contract set to begin in June 2025, is valued at R180 billion and privatises one of the country’s most profitable state-regulated entities.
The Gold Rush Consortium, fronted by prominent KwaZulu-Natal businessmen Moses Tembe and Sandile Zungu, is scheduled to take over from the current operator, Ithuba, at the end of May. However, the announcement has been met with fierce criticism from opposition parties, particularly the Economic Freedom Fighters (EFF) and Build One South Africa (BOSA), citing a lack of transparency in the selection process.
Allegations of Cronyism and Conflicted Interests
The EFF strongly opposed the deal, calling it an assault on transparency and a symptom of a broader culture of patronage. The party raised red flags over ties between Gold Rush and two members of the National Lotteries Commission (NLC) bid evaluation committee.
Among those under scrutiny is Thiran Marimuthu, who reportedly attended a Gold Rush anniversary event, raising serious ethical concerns. Another evaluator, Anne-Marie Pooley, is said to have financial ties to a Pretoria venue where Gold Rush operates gaming machines.
“These connections not only compromise the independence of the evaluation process but expose the entire procurement to the risk of collusion and manipulation,” said Sinawo Thambo, the EFF’s national spokesperson.
BOSA Demands Transparency, Files PAIA Request
Echoing the EFF’s concerns, BOSA has taken legal steps to shed light on the selection process. The party submitted a Promotion of Access to Information Act request, seeking full disclosure of the criteria, individual scores, and declarations of interest made by evaluation panel members.
“South Africans have a right to know whether this process has been conducted above board,” said Roger Solomons, BOSA’s national spokesperson. He further called on Trade, Industry and Competition Minister Parks Tau to publicly release the adjudication records and explain the basis for selecting Gold Rush over other bidders.
BOSA’s actions underscore growing fears that this key national process involving billions in public funding might have been compromised for personal gains.
Potential Risks to Social Development Funding
Beyond the immediate political backlash, both parties are warning that the decision could have far-reaching implications. The National Lottery is a critical funding engine for community upliftment programmes, including youth development, education, and health initiatives. Critics argue that a disruption in the transition or mismanagement by the new operator could derail the distribution of these essential funds.
“This politically motivated appointment will have disastrous consequences for the functionality of the National Lottery,” warned the EFF.
Concerns have also been raised about the potential impact on technical infrastructure and digital systems that support daily operations of the Lottery. With only weeks remaining before the handover, critics worry there is insufficient time to ensure a seamless transition, especially if the incoming operator lacks the operational readiness required.
Calls for Urgent Parliamentary Intervention
In light of these allegations, the EFF and BOSA are calling for immediate parliamentary scrutiny, urging lawmakers to probe the adjudication process and validity of the award. These parties insist they will not allow what was described as a “politically connected takeover” in one of South Africa’s most important national institutions.
“The integrity of the National Lottery must be protected from capture and cronyism,” said Solomons. “We cannot sit back while billions in public value are handed over under questionable circumstances.”
As the country awaits official responses from the NLC and the Department of Trade, Industry and Competition, pressure is mounting on government authorities to defend the selection process or reconsider the appointment of Gold Rush Consortium.
Source: focusgn.com
