Latest news with #MosesTembe
IOL News
34 minutes 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
2 days ago
- Business
- IOL News
Sizekhaya Holdings outlines its vision for the national lottery
Sizekhaya Holdings has been confirmed as the fourth national lottery licence operator, promising to enhance local participation and uplift communities through its empowerment initiatives. Image: Supplied Sizekhaya Holdings says it is in the process of setting up its structures and putting in place the necessary infrastructure following its confirmation as the fourth lottery licence operator. In a statement on Thursday, the consortium said it was delighted to be awarded the fourth national lottery licence. It explained that the Sizekhaya consortium consists of a variety of shareholders and a management team that have experience in business and gaming along with operational experience. "The Sizekhaya consortium is backed by the Goldrush Group, a JSE-listed company renowned for its extensive experience in gaming and online betting. Goldrush holds a 50% stake in Sizekhaya Holdings, ensuring a robust foundation for the consortium's operations. Over and above this, some of the other shareholders include Bellamont Gaming (of which Moses Tembe is a director) and Sandile Zungu, who bring a wealth of business expertise. "Sizekhaya's broad-based empowerment scheme encompasses 40% new black entrants, including a grouping of young black professional women. The Sizekhaya Foundation NPC will hold six percent of the issued share capital, which is 200% of the target for ownership through broad-based schemes." 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 said that its team had extensive experience in gaming in South Africa, cutting-edge game design, a strong technology partner, optimised localisation, expanded broad-based economic empowerment and a commitment to increase ticket sales to create a winning combination. Sizekhaya said its technical partner is China's Genlot, the technology partner for the largest lottery operator in the world. "Genlot has formed a local 51% BEE-held technology company which will supply lottery and technology products and services at competitive rates while also ensuring that local skills are developed. In total, Sizekhaya boasts a local content ratio of 96.16%, ensuring that for the first time in its history the National Lottery is truly local." Tembe said: 'South Africa has hit the jackpot with Sizekhaya. Our vast experience in gaming in the country along with the brains trust we have assembled driven by the collective vision of creating a more enhanced national lottery for good causes, will grow the lottery so more good causes benefit. 'Our choice of technical partner was deliberate as well as we were determined to minimise the amount of foreign exchange that leaves the country."
IOL News
3 days ago
- Business
- IOL News
KZN kings hit the jackpot: Moses Tembe and Sandile Zungu's Sizekhaya Holdings take over lottery from Ithuba
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. Sizekhaya Holdings, linked to KwaZulu-Natal businessman Moses Tembe and Amazulu Football Club owner, Sandile Zungu has been announced as the new lottery operator, effectively taking over from Ithuba, who managed the lottery since 2015. Sizekhaya's licence is valid for eight years Earlier on Wednesday, Department of Trade, Industry and Competition (DTIC) Minister Parks Tau said the National Lotteries Commission (NLC) submitted a report on May 26 confirming successful negotiations with Sizekhaya Holdings, the preferred bidder supported by the Goldrush Group, its part owner. Who is Sizekhaya Holdings? Gauteng-based Sizekhaya Holdings is led by a consortium that includes Tembe and Zungu. Zungu has also been linked to the African National Congress having previously run for the KZN chairperson post in 2022 and then withdrawing from the race. Legal woes Tau said despite the awarding of the licence, the process has already become the subject of litigation and a judgment of the High Court. I am seeking legal advice to appeal 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 application," the minister said.
IOL News
17-05-2025
- Business
- IOL News
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 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 ✕ 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. IOL NEWS
