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Minister Parks Tau, the Minister of Trade and Industry, has shared his reasons for granting the fourth lottery license to Sizekhaya Holdings. He described the competition as a “close race and a tight finish,” highlighting the intensity of the selection process.
In an affidavit to the Gauteng High Court in Pretoria, Tau pointed out that Sizekhaya “pipped the others to the post” with a bid that stood out due to its balance and the quality of its technology partners.
He noted that the projected revenue from Sizekhaya is “suitably ambitious, yet credible,” suggesting that the company has realistic yet optimistic financial goals.
Furthermore, Tau highlighted that Sizekhaya’s expected contributions to the National Lottery Distribution Trust Funds (NLDTF) would likely surpass those of other bidders, reinforcing the decision’s potential benefits for the community.
Tau Acknowledges Political Connection Concerns
Minister Tau addressed the worries surrounding the political ties of some shareholders in Sizekhaya, particularly regarding Deputy President Paul Mashatile. He stated that he had instructed the National Lotteries Commission (NLC) to look into these alleged connections.
“I had to provide my reasons for selecting Sizekhaya due to two court challenges launched by Lekalinga and Ithuba Lottery, the latter currently operating the lottery under a temporary license,” Tau explained.
He revealed that Lekalinga ranked among the lowest bidders, while Ithuba Lottery was considered the runner-up. Tau also mentioned that he decided against a bid from Ringeta, overriding his advisory panels, because of its ties to the Batho Batho Trust, a known donor to the ANC.
“Dr. Sibongiseni Dhlomo, an ANC MP, was flagged as a trustee of the Batho Batho Trust, raising concerns about compliance with the Lotteries Act and the RFP terms,” Tau noted.
Ringeta Were Initially Ranked First
The quality assurance process only began after the National Lotteries Commission (NLC) made its recommendations, with Ringeta receiving the top ranking at that time. Minister Tau emphasized his dedication to a thorough evaluation, stating, “I was not prepared to forgo the quality assurance process.”
To reassess the bids, a ministerial committee was formed, which included members from the quality assurance committee and expert consultants. Their final report ultimately favored Sizekhaya as the preferred bidder, with Ithuba Lottery designated as the reserve bidder.
While Sizekhaya’s proposal was seen as the most balanced, Tau acknowledged the criticisms regarding its marketing budget for new games. However, he commended its comprehensive marketing strategy and plans to refresh existing lottery games.
The court’s review of this decision is expected to take some time. Bidders who feel wronged are likely to submit additional affidavits in response to the minister’s statements, raising concerns about Sizekhaya’s political connections.
Source: FindMoreAfrica
