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Daily Maverick
5 hours ago
- Business
- Daily Maverick
Troubling questions after Minister Tau gives Ithuba another year to run National Lottery
On the face of it, Ithuba should have been excluded, as it did not bid for the new permanent licence and it has reached the maximum legal operating limit of 10 years. Minister Parks Tau has granted a controversial 12-month National Lottery extension as an 'emergency' temporary licence to Ithuba Holdings to run the National Lottery. This extends Ithuba's operations to 11 years despite the legal limit being 10 years maximum. Tau's decision comes despite two court judgments that found that the temporary licence tender process was unfair and favouring Ithuba. Ithuba should also have been excluded as it had not bid for the new permanent licence. The minister responsible for the National Lottery has awarded an 'emergency' 12-month temporary licence to Ithuba Holdings, the company that has operated the National Lottery for the past 10 years. The awarding of the temporary licence was made just hours before Ithuba's contract ended at midnight on Saturday. According to the Lotteries Act, an operator's licence is valid for eight years but may be extended once for a maximum of two years. Ithuba's original licence, issued in 2015, was extended for two years in 2023 and ended this past Saturday. It is unclear on what grounds Trade, Industry and Competition Minister Parks Tau granted a further year to Ithuba Holdings. This means it will operate the National Lottery for 11 years, rather than the eight it was originally given when its licence was awarded. In terms of the Request for Proposals (RFP) for the temporary licence, only the eight consortiums that bid for the permanent licence could tender for the temporary one. Ithuba Holdings did not apply for the new operator licence. Instead, a sister company, Ithuba Lottery, with which it shares seven directors, a physical address and a website, applied. Tau's decision to award the temporary licence to Ithuba Holdings (and not Ithuba Lottery) raises several troubling questions. (Even choosing Ithuba Lottery would have been questionable, since they are only two different companies in a strict legal sense; practically they are the same company. The creation of Ithuba Lottery was, in effect, a sleight of hand.) Despite two damning court rulings, Tau has used Section 13B in a 2015 amendment of the Lotteries Act, which gives the minister wide powers to issue a temporary licence in certain circumstances. But that does not explain why he chose Ithuba Holdings, a company which, on the face of it, should have been excluded. Asked for the reason for Tau's decision, as well as other questions about the awarding of the temporary licence, his spokesperson, Yamkela Fanisi, said, 'Thank you, we are on it. We are faced with many media requests. We will revert.' He had not responded by the time of publication. Similar questions were also sent to National Lotteries Commission (NLC) board chairperson Barney Pityana, who had also not responded by the time of publication. Ticking clock A recent judgment set aside Tau's decisions to issue a RFP for a one-year temporary licence and to extend the bid validity of the main licence for another year. The court found that the tender was unfair as it favoured Ithuba, the only one that could deliver from 1 June. But the order by Judge Sulet Potterill declaring the temporary licence invalid was suspended for five months. This meant that the licence could still be granted, but only for five months, after which the new licence holder, the Sizekhaya Consortium, which has Goldrush Holdings as a major shareholder, would have to take over. The NLC then unsuccessfully applied to vary this judgment, which raised the prospect of the sale of National Lottery tickets being suspended at midnight on 1 June. 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 National Lottery licence tender. Wina Njalo is still considering its legal options. Tense negotiations The NLC had entered into negotiations with Ithuba Holdings to run the temporary licence. It is unclear why Ithuba Lottery dropped out and was replaced by the incumbent Ithuba Holdings (which are, for practical purposes, the same company). What followed were tense negotiations that were still ongoing on Saturday, with Ithuba sticking to its guns and arguing that it was not financially viable to run the temporary licence for five months, GroundUp was told. GroundUp was told on Saturday, as the clock ticked down to the midnight deadline for a temporary licence to be concluded, that the minister would issue a statement by noon. But several hours later, Ithuba had not signed the agreement that would ensure that ticket sales would not be disrupted. Had the negotiations been unsuccessful, the NLC recently told Parliament, there would be no disruption of grants as it had R4.3-billion in reserve to continue to fund worthy causes. Tau finally issued a statement after 6pm, with less than six hours to go, and the prospect of the National Lottery ticket sales being suspended looming. In the statement, Tau said: 'I am pleased to report that I have concluded, on advice of the [National Lotteries] Commission, successful negotiations with Ithuba Holdings (RF) (Pty) Ltd and have signed a Temporary Licence Agreement for them to operate the National Lottery and Sports Pool on a temporary basis for a period of 12 months with effect 01 June 2025. The Temporary Licence will ensure the continuation of the [National] Lottery operations in the period that transition is required from the Third to the Fourth Licence operations.' Tau also said he would appeal the NLC's failed appeal and quoted from the judgment by Judge Omphemetse Mooki to justify his decision. Mooki had said: '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. This is more so because the Minister has more latitude in appointing a temporary operator, as opposed to a fully licensed operator.' Tau said, 'It is in the context of both the [earlier] 21 and [Mooki's] 30 May 2025 judgments that I received and accepted the advice from the Commission, that I appoint a temporary licence operator on an urgent basis.'
The Citizen
17 hours ago
- Business
- The Citizen
Minister appoints Ithuba Holdings to run national lottery for 12 months
Trade, Industry and Competition Minister Parks Tau has appointed Ithuba Holdings (RF) (Pty) Ltd as the temporary national lottery and sports pool operator for 12 months. This as the minister on Wednesday announced the successful conclusion and appointment of Sizekhaya Holdings (RF) (Pty) Ltd ('Sizekhaya') as the fourth national lottery and sports pools operator. However, Sizekhaya's appointment takes effect on June 1, 2026. 'Sizekhaya's appointment takes effect on June 1, 2026, and requires that there be transition from the third national lottery and sports pools operations to the fourth national lottery and sports pool licence operations. '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. 'I am pleased to report that I have concluded, on advice of the commission, successful negotiations with Ithuba Holdings (RF) (Pty) Ltd and have signed a temporary licence agreement for them to operate the National Lottery and Sports Pool for a period of 12 months with effect June 1, 2025,' said the minister in a statement on Saturday. The temporary licence will ensure the continuation of the lottery operations in the period the transition is required from the third to the fourth licence operations. In addition, the minister said he takes issue with the judgment of the High Court of May 21, which found that the Temporary Licence Request for Proposal (RFP) was not valid and has appealed this judgment. 'However, in its judgment of May 21, the court accepted that it is in the public interest that the National Lottery should continue to operate to raise revenues to fund worthy causes, notwithstanding that the court was not satisfied with the RFP process. Additionally, another court affirmed my power to appoint a temporary licensee in its judgment of May 30,' said Tau. It is in the context of both the May 21 and 30 judgments that the minister received and accepted the advice from the commission that he appoint a temporary licence operator on an urgent basis. 'I am pleased that the National Lottery operations will not be interrupted during transition from the third to [the] fourth licence operations and that worthy causes will continue to receive support,' said the minister. – Breaking news at your fingertips… Follow Caxton Network News on Facebook and join our WhatsApp channel. Nuus wat saakmaak. Volg Caxton Netwerk-nuus op Facebook en sluit aan by ons WhatsApp-kanaal. At Caxton, we employ humans to generate daily fresh news, not AI intervention. Happy reading!
IOL News
17 hours ago
- Business
- IOL News
Ithuba Lottery confirms 12-month temporary extension of its operating licence
In a play on its "Phanda Phusha Play" slogan, Ithuba Lottery has introduced "No Pause, Just Play" as it confirmed a 12-month temporary extension of its operating licence Image: File In a play on its "Phanda Phusha Play" slogan, Ithuba Lottery has introduced "No Pause, Just Play" as it confirmed a 12-month temporary extension of its operating licence, while the incumbent licence holder, Sizekhaya, prepares to put systems in place. In a statement yesterday, Ithuba said that after careful consideration and prioritising the interests of South Africans, it had reached an agreement with the Minister of Trade, Industry and Competition and the National Lotteries Commission to operate the South African National Lottery, ensuring its ongoing contribution to good causes. "As a proudly 100% black-owned South African operator, Ithuba remains steadfast in its commitment to operating the National Lottery with integrity, transparency, and for the benefit of South Africans. Participants can rest assured that all games, draws, and prize payouts will continue as normal – with the same exciting jackpots and seamless service they are accustomed to," spokesperson Michelle van Trotsenburg said. This follows Trade, Industry and Competition Minister Parks Tau's decision to award the 12-month extension to Ithuba to ensure ticket sales continued from June 1. He expressed concern with the High Court judgment of May 21, 2025, which found that the Request for Proposal for a Temporary Licence was invalid, and he has appealed this judgment. However, in its judgment, the Court accepted that it is in the public interest for the National Lottery to continue operating to raise revenues for worthy causes, despite its dissatisfaction with the RFP process. Tau added that another court affirmed his power to appoint a Temporary Licensee in its judgment of May 30, 2025, stating: 'It would be surprising to the Court if the Minister were unable to appoint an operator on a temporary basis for a whole year. This is especially so because the Minister has more latitude in appointing a temporary operator, as opposed to a fully-licensed operator.' 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. 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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. Next Stay Close ✕ "It is in the context of both the 21 and 30 May 2025 judgments that I received and accepted the advice from the Commission to appoint a temporary licence operator on an urgent basis. I am pleased that National Lottery operations will not be interrupted during the transition from the Third to the Fourth Licence operations and that worthy causes will continue to receive support," Tau said. The Minister's decision comes as Pretoria High Court Judge Omphemetse Mooki dismissed the National Lottery Commission's application to vary an order made by the court on May 21 to extend the temporary operating licence to 12 months, as the court was not persuaded that a case had been made for extending the period of suspension of invalidity. In arguments leading to the award of the licence to Sizekhaya, law firm Nortons Inc successfully represented the Wina Njalo Consortium in an urgent review of several decisions by Minister Tau regarding the awarding of the fourth national lottery licence. Judge Mooki noted that there was no substantive evidence that Ithuba Lottery would suffer a claimed loss of R51 million unless granted a temporary licence for a 12-month period. He further observed that Ithuba Lottery itself had not filed any affidavits in the matter, despite the application being premised on its position. BUSINESS REPORT Visit:
IOL News
2 days ago
- Business
- IOL News
New Lotto boss says the game's back on — and this time, it's for the people
Moses Tembe, the chairman of Sizekhaya Holdings, has expressed the company's 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. He went on to say that when the lottery is run well, it can become a powerful force for good. "We have seen glimpses of this in South Africa. In its 25 years of operation, the lottery has funded thousands of organisations that contribute to much needed community development. But we believe that it can deliver so much more. That is why Sizekhaya Holdings bid for the lottery."
IOL News
2 days ago
- Business
- IOL News
Moses Tembe of Sizekhaya Holdings celebrates new National Lottery licence
Moses Tembe, the chairman of Sizekhaya Holdings, has expressed the company's 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. He went on to say that when the lottery is run well, it can become a powerful force for good. "We have seen glimpses of this in South Africa. In its 25 years of operation, the lottery has funded thousands of organisations that contribute to much needed community development. But we believe that it can deliver so much more. That is why Sizekhaya Holdings bid for the lottery."
