Latest news with #Ithuba
IOL News
31 minutes ago
- Business
- IOL News
How deal was struck to save National Lottery from shutdown
Sizekhaya Holdings is led by a consortium that includes KwaZulu-Natal business figures such as Moses Tembe, former Chairperson of the KZN Growth Coalition, and Sandile Zungu, owner of AmaZulu football club. Image: Sihle Mlambo/IOL In tense, last minute discussions at the weekend, Trade, Industry, and Competition Minister Parks Tau intervened to prevent a shutdown of the popular National Lottery. Tau's intervention came after a high-stakes meeting on Saturday with the National Lottery Commission (NLC) and Ithuba, the current lottery operator. The situation arose after a Gauteng High Court ruled that Ithuba's operating license could only be extended for five months, until the new operator, Sizekhaya Holdings takes over. However the NLC had argued that a 12-month temporary license was necessary to ensure a smooth transition, but the court disagreed. However, in a surprise move, Tau announced that he had granted a 12-month temporary license to Ithuba Holdings, allowing them to continue operating the National Lottery from June 1 until the end of May next year - when Sizekhaya Holdings takes over as the operator. According to sources close to Tau, the minister promised Ithuba that they would not lose any revenue and would instead make a profit, although the details of how this would be achieved are not clear. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Next Stay Close ✕ Ad Loading "It was an intense meeting, and the minister knew what impact it would have on the country's economy given the scale of the tender and people relying on playing the lotto week in and week out," a source said. Ithuba had argued in court that if they accepted a five-month extension, they would incur a loss of R51 million. Ithuba has agreed to continue operating the National Lottery, ensuring that all games, draws, and prize payouts will proceed normally. The company has reassured the public that they will maintain their commitment to integrity, transparency, and the benefit of South Africans. "As a proudly 100% black-owned South African operator, Ithuba remains steadfast in its commitment to operate the National Lottery with integrity, transparency, and for the benefit of South Africans," the company stated on Saturday. While this agreement provides short-term relief, the long-term future of the National Lottery remains uncertain. Sizekhaya Holdings, the preferred bidder, is set to take over the lottery in June 2026, but questions remain about the transparency of the licensing process and the impact of further legal challenges. Announcing the preferred bidder Tau said he had received a report from the NLC regarding the satisfactory conclusion of negotiations with the preferred bidder for the Fourth National Lottery and Sports Pools Licence. 'I am pleased to announce that I have awarded Sizekhaya Holdings (RF) (Pty) Ltd ('Sizekhaya') the licence in terms of section 13 of the Lotteries Act 57 of 1997. As I indicated previously, I intended to announce the successful bidder on 28 May 2025 provided that the licence agreement negotiations with the preferred bidder were successfully concluded. I wish to thank the parties to the negotiations for completing their work in time. 'It is most unfortunate that this matter has already become the subject of litigation and a judgment of the High Court. I am seeking legal advice with a view to appealing against the judgment's findings and orders, and I reserve all my rights concerning this judgment. 'With due respect to the Honourable High Court, my announcement is the result of my undertaking made to the bidders and the Court before the hearing of the ends a long and difficult process of evaluating eight applications for the fourth licence. I appreciate that this has been an enormous and complex endeavour,' Tau said. On Sunday, Sizekhaya Holdings chairperson Moses Tembe, expressed his gratitude for being awarded the fourth lottery licence by the National Lottery "We welcome that the honourable Minister of Trade, Industry and Competition, Parks Tau appreciated the power of our vision. When the National Lottery was first mooted after the ushering in of our democracy, the most compelling argument for its existence was income it could generate to help the poorest and most vulnerable of South Africans," said Tembe. Tembe is a co-owner with Sandile Zungu, the owner of Amazulu Football. Ithuba had previously expressed disappointment at the decision to award the license to Sizekhaya Holdings, stating that they had invested significantly in developing the lottery infrastructure and had made significant contributions to good causes. "As a fully South African-owned and black-empowered operator, Ithuba Lottery has invested significantly in developing the first African central lottery system, owned and developed for Africa by South Africans," the company stated.
The Citizen
20 hours ago
- Business
- The Citizen
No disruptions to lottery operations as temporary licensee appointed
Ithuba's licence ends today. There will be no disruptions to lottery operations as Trade, Industry and Competition Minister Parks Tau has appointed a temporary licensee. Tau announced on Saturday that he has concluded successful negotiations with Ithuba Holdings and signed a temporary licence agreement for them to operate the National Lottery and Sports Pool for a period of 12 months, effective from 1 June 2025. On 28 May 2025, Tau announced the successful conclusion and appointment of Sizekhaya Holdings (RF) (Pty) Ltd ('Sizekhaya') as the fourth National Lottery and Sports Pools operator. Ithuba's licence ends today. ALSO READ: Big change to Lotto operations: Will tickets be on sale next week? Eight applications to take over from Ithuba Holdings had been on the table. The licence will cover operations for all national games, as well as sports pool products. Sizekhaya's appointment takes effect on 1 June 2026 and requires a transition from the third National Lottery and Sports Pools operations to the fourth National Lottery and Sports Pools Licence operations, said Tau. 'On advice of the National Lotteries Commission, I also authorised that a temporary licensee must be appointed in terms of section 13B of the Lotteries Act, 1997. The temporary licence will ensure the continuation of the operations in the period that the transition is required from the third to the fourth licence operations,' said Tau on Saturday. 'I am pleased that the National Lottery operations will not be interrupted during the transition from third to fourth licence operations and that worthy causes will continue to receive support.' Outgoing lottery operator Ithuba disappointed Following the minister's announcement of the new operator, Ithuba said they were 'deeply disappointed' that the department would negate their contribution to the country's lottery infrastructure. ALSO READ: You may not be able to get a Lotto ticket after today 'As a fully South African-owned and black-empowered operator, Ithuba Lottery has invested significantly in developing the first African central lottery system, owned and developed for Africa by South Africans,' stated the outgoing operator. 'This decision disregards the progress made in building a truly home-grown lottery ecosystem that empowers small businesses, drives local job creation, and channels maximum revenue to good causes,' it added. Ithuba's legal team will consider the legal implications of the decision before deciding on a way forward. NOW READ: SIU is not done with NLC yet, as more corruption allegations emerge Additional reporting by Jarryd Westerdale
IOL News
a day ago
- Business
- IOL News
Uncertainty looms over National Lottery operations after court ruling
Sizekhaya Holdings is led by a consortium that includes KwaZulu-Natal business figures such as Moses Tembe, former Chairperson of the KZN Growth Coalition, and Sandile Zungu, owner of AmaZulu football club. Image: Sihle Mlambo/IOL The National Lottery Commission (NLC) yesterday was involved in a crisis meeting to try and resolve the immediate future of the national lottery amidst uncertainty on whether tickets would be available for sale from Sunday. The uncertainty stemmed from Ithuba Holdings' sister company Ithuba Lottery, which was supposed to run the lottery under a temporary licence for the next twelve months, but the Gauteng High Court ruled last week that it can only do so for five months. The NLC then applied for the court to change that order, because otherwise Ithuba Lottery may refuse to accept the temporary licence but the court ruled against the NLC on Friday - leaving the lottery in limbo until Sizekhaya Holdings takes over as the National Lottery's new operator in nine months. Department of Trade, Industry and Competition (DTIC) Minister Parks Tau awarded a multibillion-rand contract on Wednesday to Sizekhaya Holdings to operate the National Lottery - the company is co-owned by KwaZulu-Natal business moguls, Moses Tembe, and Sandile Zungu, the chairperson of the Durban-based Premier Soccer League, AmaZulu FC. They are both linked to several companies. This decision was met with criticism from organisations that believe it goes against the true spirit of inclusive black empowerment. The crisis started after Pretoria High Court Judge Omphemetse Mooki ruled that Tau's attempt to extend the contract of the outgoing lottery operator, Ithuba Holding by 12 months, was unconstitutional and illegal. Judge Sulet Potterill, instead, said Ithuba, whose contract officially ended on Saturday, could continue for the next five months under a temporary licence until Sizekhaya was ready to take over. However, Ithuba said five months was not financially viable. Sources within the DTIC and the NLC said the situation was intense as officials were working to avert a lotto blackout and losses of billions of rands. 'Our attorneys are still busy studying the judgment. Until we tick all the boxes, I cannot confirm whether we will have a lottery or we will not have the lottery, but our lawyers are looking at the interests of the masses, and I don't think there will be any crisis,' said NLC spokesperson Rudzani Tshigemane. Mooki ruled against the NLC's appeal against the previous judgment on the matter launched by a lottery contract bidder, Wina Njalo, against Tau and the NLC's decision to extend the Ithuba licence by 12 months. Following the initial court order, Tau was forced to announce the winner on May 28, but extended the Ithuba contract by five months through a temporary licence, as per court order. However, following Ithuba's indication that it was not prepared to accept the five-month extension as it was looking for 12 months, the NLC launched the appeal, which was rejected on Friday. Mooki heard that if Ithuba accepted only a five-month extension, it would incur a loss of R51 million. Ithuba told the court that without it accepting the five-month extension, there would 'be an interruption to operations of the national lottery for 9 months from 1 June 2025' as there would be no operator, a situation that would harm members of the public. Wina Njalo told the court that Ithuba was not entitled to make a profit through an unlawful tender. It also argued that the Lottery Trust Fund had R2.2 billion in its reserve, which was enough to continue paying the lottery beneficiary organisations until the new operator takes over. In his affidavit, Tau supported the NLC's application, however Mooki said was not convincing enough for him to rule against the previous judgment, and therefore, he dismissed the NLC's application with costs. The EFF claimed Tau's decision was a conflict of interest and showed political exposure and backdoor dealings as Zungu and Tembe had links with the ANC. 'We highlighted in our correspondence with Minister Tau and the Portfolio Committee that this amounted to a breach of the National Lotteries Act, which explicitly prohibits the awarding of a licence to any entity with direct political affiliations. 'Minister Tau's refusal to listen and to appear before Parliament, and to proceed with this appointment anyway, represents a complete betrayal of his constitutional responsibilities. 'Instead of ensuring fairness, transparency, and compliance with the Lotteries Act, he has compromised a public asset, by awarding a contract worth over R180 billion to the ANC's cronies in a clear case of state capture,' said EFF national spokesperson Sinawo Thambo in a statement. Sizekhaya did not respond to a request for comment on the criticism over its appointment. The EFF said it was consulting with its legal counsel to consider a judicial review of the decision, "which includes, but may not be limited to, interdicting the awarding of the contract". The Aubrey Tau Foundation, which also condemned the awarding of the contract to Sizekhaya, said it would support legal action against Tau. 'We stand in solidarity with civil society and business leaders who are prepared to take this matter to the highest courts in the land in pursuit of transparency and justice,' the foundation said. The foundation said Tau should have awarded the contract to new entrepreneurs instead of continuing to enrich politically connected elites. 'Historically, it has been the same faces benefiting under the guise of Black Economic Empowerment (BEE). 'Instead of fostering BEE, in practice, empowered a small group of politically connected capitalists, fixers, and front persons acting as intermediaries between the government and established corporate interests,' said the foundation. President Cyril Ramaphosa had in November 2020 authorised the Special Investigating Unit (SIU) to investigate allegations of maladministration in the affairs of the NLC and to recover any loss that the NLC or the state has suffered. In a statement released on Saturday, Tembe said Sizekhaya's gaming pedigree is unmatched and that its shareholder, Goldrush, was bringing into the contract its business experience, including in gaming and online betting space.
IOL News
a day ago
- Business
- IOL News
SA faces looming lottery blackout after Pretoria High Court dismisses Ithuba bid
iol South Africa at risk of lottery shutdown after court rejects Ithuba's plea Image: File South Africa may soon experience a temporary lottery blackout, following a significant ruling from the Pretoria High Court that dismissed the National Lotteries Commission's (NLC) urgent application to extend Ithuba Holdings' operating licence beyond its impending expiry on May 31. The court's decision raises serious uncertainty about the future of the national lottery, a vital service that supports numerous community initiatives across the country. On Thursday, IOL News reported that Ithuba, the current operator tasked with managing the national lottery, is now evaluating its legal options in response to the recent decision taken to award the next operating licence to Sizakhaya Holdings. Ithuba has voiced its concern that this decision undermines the considerable advancements it has made in creating a locally focused lottery ecosystem, one that prioritises small business growth, job creation, and maximising revenue for charitable causes. The company expressed particular discontent in a statement released earlier this week, indicating that Tau's decision goes against the principles of localisation and inclusive economic growth detailed in its Request for Proposal. As a fully South African-owned and Black-empowered entity, Ithuba has heavily invested in the development of an African Central Lottery System that is both owned and designed by South Africans to serve the continent. 'Ithuba Holdings has the necessary infrastructure, financial resources and distribution systems to deliver a seamless, secure and uninterrupted National Lottery,' stated Michelle van Trotsenburg, Ithuba's head of marketing and corporate affairs. She added, 'Our game portfolio is locally developed, our operational model prioritises economic inclusion, and our reach extends across urban and rural communities, ensuring accessibility for all South Africans from day one.' Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Next Stay Close ✕ Ad loading Judge Omphemetse Mooki presided over the case, pointing out the deficiencies in the NLC's claims. Mooki argued that the commission's assertion indicating that there would be no lottery operator for a full year following Ithuba's exit was exaggerated, stating, 'It would be a surprise to the court that the minister is unable to appoint an operator, on a temporary basis, for a whole year.' He also emphasised that the minister holds broader discretion in selecting a temporary operator compared to a permanent one, asserting, 'I do not accept that the sky will fall after June 2025 should Ithuba Holdings refuse to sign an agreement to conduct lottery operations as determined in the order of May 21, 2025.' Mooki concluded that the NLC had failed to substantiate its case for the relief sought. Ultimately, while Mooki acknowledged the urgency of the application, he ruled against it, ordering both the National Lotteries Commission and Ithuba to shoulder the legal costs, including those associated with three counsel.
IOL News
2 days ago
- Politics
- IOL News
News you should know tonight: Top 5 stories you may have missed on May 30, 2025
The prime suspect wanted in connection with Olorato Mongale's death, allegedly confessed to her murder moments before he was killed in a gun battle with KZN cops on Friday morning. Good evening, IOL News family! It's Friday, May 30, 2025, and it's time for a wrap of the biggest headlines making waves in South Africa and beyond. Don't forget to join the IOL WhatsApp Channel to stay in tune, informed, and in the know SA faces lottery blackout after Pretoria High Court dismisses Ithuba bid South Africa may face a brief lottery blackout after the Pretoria High Court dismissed the National Lotteries Commission's urgent application to appoint Ithuba as a temporary operator beyond its May 31 license expiry. To read on, click here. Ethekwini Municipality confirms readiness for 98th Comrades Marathon The eThekwini Municipality has confirmed its readiness to co-host the 98th edition of the Comrades Marathon on Sunday, June 8. To read on, click here. NHI regulations face opposition from the Western Cape Government amid digital service expansion The Western Cape Cabinet has reaffirmed its opposition to the draft regulations of the National Health Insurance (NHI) Act, warning that the proposed governance arrangements threaten to destabilize the provincial health system. To read on, click here. Suspect found hiding in Durban allegedly confessed to the murder of Olorato Mongale The prime suspect, Philangenkosi Makhanya, who was wanted in connection with Olorato Mongale's murder, allegedly confessed to her murder moments before he was killed in a gun battle with KZN cops on Friday morning. To read on, click here. Deputy Speaker refers over 10 EFF members for discipline after Ramaphosa session chaos Deputy Speaker Annelie Lotriet has referred several EFF MPs to the Speaker for possible disciplinary action following their disruption of President Cyril Ramaphosa's Q&A session on Tuesday. To read on, click here. Get your news on the go, click here to join the IOL News WhatsApp channel. IOL News
