Latest news with #NLC
IOL News
2 days 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.
The Herald
2 days ago
- Business
- The Herald
Court dismisses NLC's bid to extend temporary licence to 12 months
The Pretoria high court on Friday dismissed, with costs, an urgent application by the National Lotteries Commission (NLC) in which it sought to vary an order made by the court on May 21. Earlier this month, law firm Nortons Inc successfully represented the Wina Njalo Consortium in an urgent review of a number of decisions by the minister of trade, industry and competition Parks Tau in relation to the awarding of the fourth national lottery licence. The May 21 judgment declared the minister's failure to award and issue the fourth lottery licence, as well as his decisions to extend the bid validity period and issue a temporary licence request for proposal (RFP) to be unconstitutional, unlawful and invalid and set them aside. The court suspended the order of invalidity in relation to the issuing of the temporary licence RFP for five months to allow the fourth licensee time to take over the operation of the lottery. The NLC, dissatisfied with the high court's order, launched an urgent application in the same court on Monday to vary the time period of the suspension of the order of invalidity from five months to 12 months. It argued there were new facts or a change in circumstances since the date of the May 21 order. It argued that Ithuba Lottery, which would operate the lottery temporarily, had indicated it would not agree to a five-month contract and, that Sizekhaya, the successful bidder for the fourth licence, required a transition period of nine months to take over the lottery operations.
IOL News
2 days 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.
The Citizen
2 days ago
- Business
- The Citizen
You may not be able to get a Lotto ticket after today
'I do not accept that the sky will fall' says judge The National Lotteries Commission (NLC) has failed in its bid to change a recent court ruling limiting the temporary licence to operate the lottery to five months. This means ticket sales may stop before Sunday, 1 June. The current licence, held by Ithuba Holdings, expires on Saturday. After that, their sister company, Ithuba Lottery, was supposed to take over the licence for a period of twelve months. But after last week's Gauteng High Court ruling that the issuing of the temporary licence is unconstitutional and can only be issued for five months, Ithuba Lottery said a five-month licence is financially unfeasible and may not continue operating the lottery after Saturday. And the new licence holder, Sizekhaya Holdings, which is set to take over from Ithuba Lottery for a period of eight years, will need at least nine months to set up its operations. The NLC therefore applied to change the court order to allow a twelve-month licence. But Judge Omphemetse Mooki ruled against them on Friday. Will funding stop? A source at the NLC told GroundUp that the board is in emergency meetings to discuss the way forward. If lottery ticket sales do stop after Saturday, the National Lottery Distribution Fund does still have about R4.3-billion in reserves to continue issuing grants to good causes. The NLC's application, which was heard urgently on Thursday at the High Court in Pretoria, was opposed by Wina Njalo, one of the companies that bid on the lottery licence tender. Wina Njalo argued that the NLC was seeking to relitigate the same issues that had already been heard by the court. If it was found that five months was not enough time, it argued, then the NLC could approach the court at that stage. It said the application to vary the order was yet another example of how the NLC was seeking to favour the Ithuba companies and they were not entitled to insist on making a profit, given that Ithuba Holdings had already made 'huge profits' by operating the lottery for the last 10 years. In his ruling, Judge Mooki said the issue was whether it was just and equitable to extend the period that the temporary licence can operate before it is declared invalid and, in doing so, interfere with the discretion exercised by another court. Such interference was 'very sparingly exercised'. He said he was not persuaded that the NLC had made out a case. 'There is no substantive support that Ithuba Lottery will suffer a loss of R51-million unless it is granted a temporary licence for 12 months. There was complete silence from Ithuba Lottery. It did not file any affidavits,' the Judge said. He pointed to the fact that the NLC on 22 May 2025, when it was aware of Judge Potterill's order, had written to Ithuba Lottery requesting it sign a licence to operate for 12 months. 'It was thus inviting the Ithuba Lottery to sign an agreement that would breach the order made on May 21.' While the NLC had disclosed the response from Ithuba Lottery, it had not disclosed its own letter. ALSO READ: Big change to Lotto operations: Will tickets be on sale next week? 5 months could be long enough Judge Mooki said the NLC had also not put up any evidence that Sizekhaya needed more than five months to set up operations. In fact, as Wina Njalo had pointed out, a condition of the fourth licence was that the successful bidder must be able to operate within five to six months of being awarded the licence. He said in claiming that its reserves would be significantly depleted should there be no operator after 1 June, the NLC had 'over-egged the pudding'. 'I do not accept that the sky will fall after 1 June should Ithuba Lottery refuse to sign an agreement to conduct lottery operations as determined in (Potterill's) order,' he said. The request for proposals for the temporary licence was issued when it became apparent that Minister Parks Tau would not meet the strict deadlines to announce the new lottery licence holder, giving it time to take over operations. He only made the announcement on 28 May, just three days before the expiration of Ithuba's licence. He has yet to provide reasons for the delay. This article originally appeared on GroundUp and was republished with permission. Read the original article here. NOW READ: SIU is not done with NLC yet, as more corruption allegations emerge
Hamilton Spectator
3 days ago
- Business
- Hamilton Spectator
First Nations high school students explore career paths at event
FORT ST. JOHN, B.C. — Indigenous secondary school students from around School District 60 had a chance to see potential future careers at an event hosted by Northern Lights College (NLC) on Tuesday. Pathways to Indigenous Futures, coordinated by NLC specifically for First Nations students, took place during the morning and early afternoon of May 27th. Designed to be 'a career fair without calling it a career fair, ' students had a few moments from their hectic educational schedules to take in what pathways are available, including ones in industry, skilled trades and entrepreneurship. Scott Lloyd, the organizer who spearheaded the event, coordinated with NLC and representatives from various Indigenous communities, including Doig River First Nation (DRFN), Halfway River First Nation (HRFN) and Blueberry River First Nations (BRFN). Sponsorship from the event came from companies such as Arc Resources, BC Hydro, Centurion, ConocoPhillips, Halfway River Group-affiliated companies including Halfway River D&D Well Services and Canadian (CDN) Controls, Monmouth, Uujo Contracting, Shell Canada and the North East Native Advancing Society (NENAS). 'We're trying to create something fun that's engaging to the students [and] inspires the students in some small way,' said Lloyd, an independent Indigenous consultant who resides in Campbell River. 'Hopefully we get to grow it and get it bigger, and we keep inspiring. 'Walking through the space today we got a wide variety of people. We're hoping, with the sponsorships and moving forward, we're going to make this event next year even bigger.' Indigenous entrepreneurs and representatives from the oil and gas industry, law enforcement and nursing were on hand while the students inquired about the potential careers that lay ahead for each. Tylin Apsassin, who began the hat restoration business that bears his last name, began his entrepreneurial venture at just 14 years old. Still only 20 years old, he says the event is for Indigenous entrepreneurs to show 'passion' for their trades to Indigenous students. 'We do this because we're passionate about it,' said Apsassin, a member of BRFN. 'In the world we live in, people are able to go and do whatever they want, so long as they put their mind to it.' Daniel Prince, who runs Hero Time Maintenance, is a member of Haisla Nation located in Kitimat, and promoted what ways education can benefit students for both members of First Nations communities and those who are not. Prince's business started in 2010 with him working in plumbing and gas fitting, and has expanded out to all kinds of residential and commercial repairs. He joked students 'take math seriously' to have success. 'Good grades helped me get a long way,' said Prince. 'I was on honour roll all throughout high school and it allowed me to get different grants and bursaries. '[There's] a lot of different help out there. There are people who don't know it's there, and if you just go out and find it. You got good grades, that will help you go a long way, and you wouldn't even know until you find a connection.' The day was spearheaded by an appearance by the Notorious Cree, an Indigenous hoop dancer, entertainer and motivational speaker, who is from Tallcree First Nation near Fort Vermilion, Alberta. He was backed up by members of School District 60's Indigenous education dance troupe, who participated in various dances such as a men's grass dance and a women's fancy shawl. The dancing concluded with an inter-tribal dance with some participation from student attendees. Playing his flute and talking to the crowd, Notorious Cree spoke of harmony and acceptance among all people. 'It's important to remember that we do live in a world where racism and bullying is very prevalent,' Notorious Cree, otherwise known as James Jones, told students. 'But one thing I learned is it comes from a place of misunderstanding. 'We're here for a very short time on this earth. It's up to you if you want to be here and you want to walk this world with love or with hate in your heart. Something so small can have such a big positive impact on somebody, even just asking how their day is going. You might not know, but that could honestly save somebody's life.' Despite having a million-plus followers on Instagram, he told he enjoys the intimacy of smaller crowds. 'I do big events with thousands of people,' he said. 'I love smaller events. I feel like you can be more face-toe-face. To me, community is everything.' Pathways to Indigenous Futures took place at NLC's Fort St. John campus on May 27th.
