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The controversy surrounding the South African national lottery has gone to a whole new level as Ithuba Holdings, the current lottery operator, has filed an urgent lawsuit challenging the recent decision to award a five-year lottery license to Sizekhaya Holdings.
The legal action was initiated on September 4, 2025, at the North Gauteng High Court in Pretoria. Ithuba aims to stop the transfer of the license, which is expected to happen soon, citing alleged irregularities in the bidding and evaluation processes.
This massive contract, worth around R180 billion (€8.7 billion), was granted by Trade, Industry and Competition Minister Parks Tau in late May 2025. This marks the fourth time a license has been issued in the lottery’s history, and Ithuba ‘s challenge raises serious questions in an already controversial sector.
Protocols Were Ignored, Ithuba Claims
Ithuba argues that Minister Tau strayed from established protocols during the selection process, which had already faced significant delays and extensions regarding the bid validity. Court documents suggest that Tau overlooked essential scoring criteria set forth in the Lotteries Act, such as assessing technical expertise and operational readiness, favoring Sizekhaya instead.
Additionally, Ithuba asserts that discussions with the consortium began too early, before the bidding phase officially concluded. This could have jeopardized the fairness of the entire competition.
The legal team for Ithuba believes that Tau’s alleged negligence in following the bidding rules and evaluation standards has tainted the licensing process as a whole.
This is the second lawsuit challenging Sizekhaya’s win after Lekalinga Consulting, another unsuccessful bidder, filed a similar suit in July 2025.
Political Ties Questioned Again
The allegations surrounding the lottery license award raise serious questions about potential conflicts of interest related to Sizekhaya’s shareholders and their connections.
Reports, along with submissions from Ithuba, highlight indirect political ties, notably the involvement of Deputy President Paul Mashatile’s sister-in-law as a shareholder. Additionally, links to well-known KwaZulu-Natal business figures, such as Moses Tembe and Sandile Zungu, who are seen as having ties to the ANC, further complicate matters.
Ithuba contends that these connections did not receive adequate scrutiny during the selection process, fueling concerns about possible undue influence in what should be a merit-based and transparent procedure.
The company, which has successfully operated the lottery since 2015 with a strong record in revenue generation and social funding, expressed its disappointment through CEO Charmaine Mabuza, emphasizing the need for integrity in the process. “Despite our proven performance and compliance, the process appears to have favoured Sizekhaya without proper justification,” he said.
Minister Tau Denies Claims, Investigation Still Ongoing
In a detailed affidavit submitted last month, Minister Tau defended his decision to award the lottery license, asserting that it was based on objective criteria and that he had no prior knowledge of any political connections.
He highlighted Sizekhaya’s strengths, pointing to their industry expertise, financial stability, compliance with the Lotteries Act, and commitment to social responsibility, as well as their contributions to local economies and Broad-Based Black Economic Empowerment (B-BBEE).
Tau emphasized that he acted diligently, relying on recommendations from the National Lotteries Commission (NLC), and rejected any allegations of bias. He stressed that the evaluation process was merit-based and free from external influences at the time the decision was made.
Furthermore, he mentioned that he has asked the NLC to investigate the claims against Sizekhaya that surfaced after the contract was awarded, confirming that the inquiry is currently ongoing.
Sizekhaya Denies Political Ties
Sizekhaya Holdings, a consortium made up of seasoned gaming and financial firms, has firmly refuted the allegations of political connections.
In a statement released in July 2025, the group labeled the claims of political influence as “baseless” and expressed their support for the Minister’s initiative to conduct a thorough investigation. They asserted that they had complied with all requirements throughout the selection process.
Their win came after an extended bidding competition, during which Minister Tau extended deadlines to allow for detailed evaluations. This move followed earlier concerns from some parties about favoritism towards Ithuba.
Source: FocusNGN
