EFF raises concerns over Gold Rush Consortium's mooted National Lottery takeover
IOL The Economic Freedom Fighters (EFF) expresses grave concerns over the selection of the Gold Rush Consortium as the preferred bidder for South Africa's National Lottery, citing political interference and conflicts of interest that threaten the integrity of the process.
Image: File
The Economic Freedom Fighters (EFF) has expressed deep concerns over reports that the Gold Rush Consortium has been selected as the preferred bidder to operate the National Lottery for the next eight years, under a contract valued at R180 billion.
The consortium is led by KwaZulu-Natal businessmen Moses Tembe and Sandile Zungu.
This lottery bidding process has been marred by allegations of political interference, conflicts of interest, and a flagrant disregard for principles of ethical governance.
Durban businessman Moses Tembe. Picture: Independent Newspapers Archives
Image: Independent Newspapers Archives
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This is according to Sinawo Thambo, the EFF's National Spokesperson.
Serious questions have arisen over the integrity of the evaluation process, particularly due to the involvement of individuals with direct financial and social ties to the Gold Rush Consortium, Thambo said.
Thambo specifically noted that Thiran Marimuthu, a member of the National Lotteries Commission (NLC) bid evaluation committee, has close professional and personal connections to Gold Rush.
Another committee member, Anne-Marie Pooley, is listed as the sole director of Route 515 Pub and Grill in Pretoria, a venue that hosts Gold Rush gaming machines. These relationships undermine the impartiality of the bidding process and create the risk of collusion and procedural manipulation, he added.
"The EFF strongly condemns Minister of Trade, Industry and Competition Parks Tau's decision to move forward with negotiations behind closed doors. His refusal to provide clear answers to direct questions, while holding private consultations with the NLC, casts serious doubt on the transparency and legality of the process," Thambo said in a statement.
Businessman Sandile Zungu
Image: Independent Media Archives
The EFF argued that the promotion of the Gold Rush Consortium, despite the evident conflicts of interest reflects a broader pattern of patronage and elite capture that has come to define the ANC-led government.
Thambo said that such politically driven appointments threaten the effective functioning of the National Lottery.
With the current licence held by Ithuba set to expire in May 2025, the incoming operator must begin work at least six months in advance to establish critical infrastructure.
This includes implementing secure and sophisticated technological systems, securing retail and digital platforms, and ensuring full compliance with regulatory standards. Any delays in this transition period will disrupt the Lottery's essential contributions to social development, such as funding charitable organisations, supporting youth empowerment, bolstering educational efforts, and sustaining vital community upliftment projects.
Thambo argued that by favouring politically connected individuals over a fair and transparent process, this decision undermines the developmental mission of the National Lottery and endangers the well-being of countless South Africans who rely on its resources.
The EFF has demanded that Minister Tau be held accountable before Parliament for the tainted manner in which this licence is being awarded.
"We will not remain silent while a critical public institution is captured through cronyism, conflict of interest, and political favouritism. The National Lottery must serve the people, not the interests of the politically connected," Thambo said.
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