Latest news with #SizekhayaHoldings
IOL News
5 days ago
- Business
- IOL News
Sizekhaya Holdings 'pipped the others to the post', says Parks Tau
Trade, Industry and Competition Minister Parks Tau. Image: GCIS Minister of Trade, Industry and Competition, Parks Tau, has publicly defended the ongoing controversy surrounding the award of the highly anticipated fourth national lottery licence to Sizekhaya Holdings. Tau was legally obligated to disclose his reasons for selecting the company in an affidavit, in response to two court challenges requesting a review of the award. Tau cited the consortium's well-balanced bid, impressive technology partners, and high projected revenue as the reasons for its selection. He also commended Sizekhaya's plans to rejuvenate the suite of current lottery games and its broader marketing plans and spend. Tau's affidavit, filed in the Gauteng High Court in Pretoria, also reveals that Sizekhaya Holdings "pipped the others to the post" due to its impressive bid. 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 ✕ The bids by Giya Games, Lekalinga, and Umbelelo were ranked the lowest, while those by Bosela, Ithuba Lottery, Ringeta, Sizekhaya, and Wina Njalo were neck and neck,' Tau wrote in the affidavit. He highlighted Sizekhaya's "strong technology partners" and "high revenue projections" as key factors influencing the decision. The decision has been marred by controversy, with allegations of political interference and connections between Sizekhaya's shareholders, the ANC and Deputy President Paul Mashatile. Tau has been accused of not adequately addressing concerns about Mashatile's alleged connections to Sizekhaya Holdings. In the affidavit, Tau explained why he launched an investigation into the involvement of politicians, including Mashatile, in the tender awarding process. Mashatile's sister-in-law, Khutso Bogatsu, reportedly has shares in the company, sparking concerns about potential conflicts of interest. In response to these allegations, Tau said: 'I have instructed the National Lotteries Commission (NLC) to investigate the alleged connections." Tau revealed his decision to override his advisory panels, setting aside Ringeta's bid due to its affiliation with the Batho Batho Trust, a known ANC donor. Ringeta had initially been favored by both the bid evaluation and adjudication committees, but was later flagged by a quality assurance committee (QAC) appointed by Tau. 'My decision was delayed because I was not convinced that the processes and outcomes were correct… This prompted speculation and even accusations that I was trying to favour one or other applicants. Nothing could be further from the truth. I refused to simply rubber stamp recommendations,' Tau said. The QAC's findings showed that Dr. Sibongiseni Dhlomo, an ANC MP, served as a trustee of the Batho Batho Trust. This made him an "office bearer," which is prohibited by both the Lotteries Act and the Request for Proposals (RFP) terms. Tau received legal counsel confirming Dhlomo's direct financial interest through the trust's 70% shareholding in Ringeta. The awarding of the contract to Sizekhaya Holdings has been met with court challenges from losing bidders, including Lekalinga and Ithuba Lottery. Tau and other respondents will have to file answering affidavits before trial dates are set. The DA has criticised Tau for relying on the NLC to investigate, given its failure to flag potential conflicts of interest in the bidding process. 'The DA will continue to seek answers on this clearly flawed process through our PAIA application and by ensuring the Minister accounts to Parliament. 'It is extremely concerning that the NLC evaluation and adjudication committees both failed to flag the glaring conflict of interest of their top candidate for the award of the lotto licence, Ringeta…the conflict of interest in awarding one of the state's largest tenders to a bidder part-owned by an ANC funding vehicle with a sitting ANC MP on its board of trustees is patently obvious,' DA Spokesperson on Trade, Industry and Competition, Toby Chance said.
IOL News
6 days ago
- Business
- IOL News
Why Parks Tau backs Sizekhaya Holdings for the national lottery licence
Minister of Trade, Industry and Competition, Parks Tau, has addressed the ongoing controversy surrounding the award of the national lottery. Image: GCIS The Minister of Trade, Industry and Competition, Parks Tau, has publicly defended the ongoing controversy surrounding the award of the highly anticipated fourth national lottery licence to Sizekhaya Holdings. Tau was legally obligated to disclose his reasons for selecting the company in an affidavit, doing so in response to two court challenges requesting a review of the award. Tau has finally disclosed his reasons for awarding the contract to Sizekhaya citing the consortium's well-balanced bid, impressive technology partners, and high projected revenue as the reasons for its selection. He also commended Sizekhaya's plans to rejuvenate the suite of current lottery games and its broader marketing plans and spend. Tau's affidavit, filed in the Gauteng High Court in Pretoria, also reveals that Sizekhaya Holdings "pipped the others to the post" due to its impressive bid. 'The bids by Giya Games, Lekalinga, and Umbelelo were ranked the lowest, while those by Bosela, Ithuba Lottery, Ringeta, Sizekhaya, and Wina Njalo were neck and neck,' Tau wrote in the affidavit. He highlighted Sizekhaya's "strong technology partners" and "high revenue projections" as key factors influencing the decision. The decision has also been marred by controversy, with allegations of political interference and connections between Sizekhaya's shareholders, the ANC and Deputy President Paul Mashatile. Tau has been accused of not adequately addressing concerns about Mashatile's alleged connections to Sizekhaya Holdings. In the affidavit, Tau explained why he launched an investigation into the involvement of politicians, including Mashatile, in the tender awarding process. Mashatile's sister-in-law, Khutso Bogatsu, reportedly has shares in the company, sparking concerns about potential conflicts of interest. In response to these allegations, Tau said: 'I have instructed the National Lotteries Commission (NLC) to investigate the alleged connections. Tau revealed his decision to override his advisory panels, setting aside Ringeta's bid due to its affiliation with the Batho Batho Trust, a known ANC donor. Ringeta had initially been favored by both the bid evaluation and adjudication committees, but was later flagged by a quality assurance committee (QAC) appointed by Tau. 'My decision was delayed because I was not convinced that the processes and outcomes were correct…This prompted speculation and even accusations that I was trying to favour one or other applicants. Nothing could be further from the truth. I refused to simply rubber stamp recommendations,' Tau said. The QAC's findings showed that Dr. Sibongiseni Dhlomo, an ANC MP, served as a trustee of the Batho Batho Trust. This made him an "office bearer," which is prohibited by both the Lotteries Act and the Request for Proposals (RFP) terms. Tau received legal counsel confirming Dhlomo's direct financial interest through the trust's 70% shareholding in Ringeta. The awarding of the contract to Sizekhaya Holdings has been met with court challenges from losing bidders, including Lekalinga and Ithuba Lottery. Tau and other respondents will have to file answering affidavits before trial dates are set. The DA has criticised Tau for relying on the NLC to investigate, given its failure to flag potential conflicts of interest in the bidding process. 'The DA will continue to seek answers on this clearly flawed process through our PAIA application and by ensuring the Minister accounts to Parliament. 'It is extremely concerning that the NLC evaluation and adjudication committees both failed to flag the glaring conflict of interest of their top candidate for the award of the lotto licence, Ringeta…the conflict of interest in awarding one of the state's largest tenders to a bidder part-owned by an ANC funding vehicle with a sitting ANC MP on its board of trustees is patently obvious,' DA Spokesperson on Trade, Industry & Competition, Toby Chance said.
IOL News
15-07-2025
- Business
- IOL News
Ethics in the grey zone: governing conflicts of interest with courage
Though the award process to Sizekhaya Holdings may have complied with legal requirements, the absence of visible and transparent disclosures around these relationships undermined trust. In governance, perception matters. Poor or absent disclosure damages legitimacy, even without legal fault. Image: Cape Argus By Nqobani Mzizi In governance, few terms provoke as much unease as "conflict of interest". It conjures images of overt corruption, self-dealing and backroom deals. Yet in many boardrooms, the more dangerous form is covert and subtle. It emerges not through criminality but convenience, not through law-breaking but ethical lapses that thrive in silence and passivity. These are the conflicts that live in the grey zone. We often associate conflicts of interest with clear-cut wrongdoing: a director awarding a tender to their own company, a regulator sitting on a board they're meant to oversee. But many conflicts are more nuanced. They live in assumptions we don't question, relationships we don't declare, and benefits we don't probe. Often, they hide in plain sight: in annual declaration forms submitted as routine or meeting registers listing interests without discussion or follow-up. These processes, meant to enable transparency, become hollow rituals without meaningful engagement and ethical reflection. Grey-zone conflicts are not always compliance failures; they are ethical blind spots where governance falters under silence, ambiguity, or convenience. They are technically compliant but ethically compromised. They flourish where disclosure is absent, recusal is performative, and boards look the other way, not because they condone wrongdoing, but because they've normalised ambiguity. It is here, in the comfort of procedure without principle, that governance erodes. King IV recognises this risk. South African law requires declaration of personal financial interests and sets fiduciary duties, but King IV Principles 1 and 5 go further, calling for ethical and effective leadership beyond legal minimalism. A director may comply with the law but betray governance's spirit by failing to disclose a relationship or by participating in decisions blurred by personal gain. When Sizekhaya Holdings was awarded the fourth National Lottery licence in 2025, public concern quickly surfaced over the perceived political connections of its leadership, including ties to relatives of senior government officials. Though the award process may have complied with legal requirements, the absence of visible and transparent disclosures around these relationships undermined trust. In governance, perception matters. Poor or absent disclosure damages legitimacy, even without legal fault. At the Airports Company South Africa (Acsa), CEO Mpumi Mpofu came under fire for alleged misrepresentation of academic qualifications and awarding bonuses to executives during financial strain. With service providers unpaid and operational performance under scrutiny, the optics of bonuses raised ethical questions. Although no formal charges were brought, the board's failure to address these concerns reflected a worrying tolerance for ethical ambiguity: a grey zone where silence replaced scrutiny. The Steinhoff International scandal, known for accounting fraud, also revealed subtle but corrosive conflicts of interest. Executives linked to related-party transactions personally benefited from inflated financial results. Despite this, the board did not act urgently. It failed to question transactions, investigate relationships, or push for disclosure. The board's deference to executive authority, whether out of loyalty, deference, or inertia, allowed personal interest to override fiduciary duty, shifting oversight to complicity. These cases show governance failures need not involve overt misconduct. Sometimes, it is the cumulative effect of quiet compromises: undisclosed affiliations, soft recusal, where directors nominally step aside without meaningful disengagement, and silence under pressure that unravels institutional integrity. The Steinhoff scandal, like the cases of Sizekhaya and Acsa, reveals a pattern: grey-zone conflicts thrive where boards privilege process over principle. They are not isolated failures but systemic symptoms of a governance culture that rewards silence over scrutiny. To break this cycle, boards must reframe conflicts of interest as strategic governance moments, not bureaucratic disclosures to file away. They must take an uncompromising stance on ethical ambiguity, recognising that every potential conflict is an opportunity to demonstrate ethical clarity and transparent leadership. This mindset demands more than compliance; it requires courage. Disclosure practices must be strengthened. Too often, boards limit declarations to statutory interests or ownership stakes, ignoring broader context. Personal, familial, or political affiliations that may create perceived bias must be declared and discussed openly. Some argue excessive scrutiny risks paralysing decision-making. Yet the greater danger lies in inaction disguised as pragmatism. Boards that tolerate grey-zone conflicts to avoid 'overcomplication' ultimately erode the very currency of governance: trust. Boards must create environments where over-disclosure is encouraged, not penalised. Oversight mechanisms must be more robust and independent. Conflict reviews should not be managed by internal structures reporting to those under scrutiny. Independent ethics committees with external expertise can depoliticise assessments. But structures alone are insufficient without cultural change. Boards must adopt zero tolerance toward grey-zone conflicts, where even perceived compromised judgment triggers recusal, not just legal violations. Ethical behaviour must be incentivised, not incidental. Executive performance metrics often focus on profitability, growth, or shareholder value. But ethical governance should be tied to performance evaluations and bonus structures. Stakeholder trust, reputational stewardship and ethical conduct must carry weight in boardroom remuneration decisions. Finally, governance culture must prioritise values over vagueness. It is not enough to have conflict of interest policies on paper. Boards must actively pose ethical questions, encourage critical reflection and normalise discomfort. A culture that rewards candour, curiosity and dissent is one that builds long-term resilience and trust. Ethical governance lives in the gap between law and leadership. Conflict of interest is not merely a legal risk; it is a test of character. It demands more than checklists and compliance registers. It demands boards and executives who are willing to declare their interests fully, recuse themselves meaningfully and interrogate decisions with integrity. As directors, we must ask ourselves: Are we fostering a boardroom culture that prioritises disclosure over defensiveness? Are we willing to challenge colleagues when grey-zone decisions arise? Do we understand the reputational cost of passive complicity? Are we prepared to act with courage when conflict surfaces, or will we hide behind process? In an era of rising public scrutiny and stakeholder activism, governance legitimacy will not be earned by technical compliance. It will be earned by ethical clarity. And that clarity is forged in the grey zones, where the law is silent, but leadership must speak. Nqobani Mzizi is a Professional Accountant (SA), (IoDSA) and an Academic. Image: Supplied * Nqobani Mzizi is a Professional Accountant (SA), (IoDSA) and an Academic. ** The views expressed do not necessarily reflect the views of IOL or Independent Media. BUSINESS REPORT
Eyewitness News
04-07-2025
- Business
- Eyewitness News
Some opposition parties reject DTIC's budget over multi-billion rand lottery operator licence
CAPE TOWN - Some opposition parties have rejected the Department of Trade, Industry and Competition's budget over the multi-billion rand lottery operator licence. Parties have raised questions over new operator Sizekhaya Holdings's alleged links to Deputy President Paul Mashatile's sister-in-law. The conflict was exposed by amaBhungane, which revealed that one of the co-owners of Bellamont Gaming was the twin sister of Mashatile's wife. ALSO READ:• Incoming lottery operator Sizekhaya Holdings commits to giving IP to govt once licence expires • Some opposition parties want Minister Tau to publicly disclose details of Sizekhaya Holdings, National Lottery contract • Newly-awarded national lottery licence operator Sizekhaya Holdings' ties to ANC questioned • KZN businessman Tembe denies claims of 'cronyism' after Sizekhaya secures lottery licence Opposition MPs used Friday's budget debate to condemn the perceived conflict of interest, with the Economic Freedom Fighters (EFF) calling the lottery the African National Congress's 'cash cow'.
The Citizen
03-07-2025
- Business
- The Citizen
EFF asks Ramaphosa for clarity on new lotto operator and alleged ties to Mashatile
Malema says the EFF reserves the right to pursue legal remedies with regard to the awarding of the National Lottery Licence. EFF leader Julius Malema has demanded clarity from President Cyril Ramaphosa on the awarding of the National Lottery Licence to Sizekhaya Holdings and the company's alleged political ties to Deputy President Paul Mashatile. Trade, Industry and Competition Minister Parks Tau awarded the eight-year licence to Sizekhaya in May, handing over the reins from long-term operator Ithuba. Sizekhaya Sizekhaya is part-owned by Bellamont Gaming, a company co-owned and co-directed by Mashatile's sister-in-law Khumo Bogatsu and prominent KwaZulu-Natal (KZN) businessman Moses Tembe. Tembe is also the chair of the consortium, while Sandile Zungu – another prominent KZN businessman – holds directorship. Furthermore, Zungu is a stakeholder in Goldrush, a gambling company that has shares in Sizekhaya. 'Grave concern' In the letter, Malema expressed 'grave concern' over the apparent politics of patronage and the 'intricate web of familial and political connections'. He said the EFF had previously cautioned against this appointment due to, among other things, Zungu and Tembe's affiliation with the ANC. 'The involvement of the Deputy President adds a troubling dimension to this matter. It has come to light that Khumo Bogatsu – a co-owner of Bellamont Gaming, which is also a shareholder in Sizekhaya Holdings – is the twin sister of South Africa's Second Lady, Humile Mashatile, the wife of Deputy President Paul Mashatile,' Malema wrote. 'Furthermore, Ms Bogatsu is engaged to businessman Sbu Shabalala, who is a cousin of Moses Tembe, the lead figure in Sizekhaya and co-owner of the Goldrush Consortium.' Malema said these links suggest the awarding of the lottery licence may have been influenced, which constitutes state capture. ALSO READ: Tau vows to investigate after Mashatile's sister-in-law linked to multi-billion lotto operator licence Malema demands answers from Ramaphosa He proceeded to demand answers to the following questions: Are you aware of the extent of political ties involved in the appointment of Sizekhaya Holdings as the National Lottery operator? If you are aware, do you support the decision made by Minister Tau despite serious procedural irregularities, conflicts of interest, and the defiance of parliamentary oversight? Have you personally engaged Deputy President Mashatile on this matter, and if so, what explanation has he provided regarding the involvement of his immediate family in a multi-billion-rand public contract? In light of the State Capture Commission and your stated anti-corruption stance, what is your position on politically exposed persons and their close relatives benefiting from government contracts or public licences such as this one? Possible legal action Malema said the EFF believes the National Lottery must serve the developmental interests of South Africans, not those of the political elite. 'The level of political entanglement in this deal, compounded by Minister Tau's refusal to be held accountable, undermines the legitimacy of this award and sets a dangerous precedent for future public procurement.' He said his party reserves the right to explore legal options, including approaching the courts to 'compel disclosure of the appointment process and, where necessary, to have these appointments reviewed and set aside on grounds of irrationality, procedural irregularity, or breach of public governance principles'. Mashatile addresses allegations Mashatile has denied suggestions of political interference and argued that Bellamont Gaming was not doing business with the Presidency. He said it was unfair to question why his relatives were conducting business. 'There are so many people who know me in this country – family, children, cousins and friends. Where must they do business, in Zimbabwe? Out of this country,' Mashatile asked during an interview with Sowetan on Tuesday. 'They can do business, as long as I'm not involved, not because they know me. Because once you say Mr Mashatile is capable of influencing, even if he is sitting in his house, it's unfair. You must be able to say he went there to interfere.' ALSO READ: WATCH: Mashatile denies family tied to multibillion-rand lottery deal Bosa requests transparency EFF is not the only party that has expressed concern over the awarding of the licence. In May, Musi Maimane's Bosa called for full transparency from Tau, requesting a list of adjudicators and consultants involved in the lottery tender process. The party also asked for their disclosures and declarations of interest, as well as a report to parliament outlining the evaluation criteria and scoring of each bid. 'South Africans have a right to know whether this process has been conducted above board or whether it is tainted by insider influence or political interference,' the party said in a statement. 'We will not allow South Africa's public resources, or the hopes of the vulnerable communities who depend on lottery funding, to be hijacked by cronyism or corruption.' DA asks Tau to appear before committee The DA also requested Tau and the National Lotteries Commission to appear before the Parliament's trade and industry portfolio committee to answer questions concerning the licence. During the meeting on 24 June, Tau said he would investigate the conflict-of-interest allegations concerning Sizekhaya – much to the DA's dissatisfaction. 'The DA is astounded that Minister of Trade, Industry and Competition, Parks Tau, came to Parliament today to effectively admit to committee, that he had failed in his executive duties to properly oversee the appointment of the new Lottery Operator Sizekhaya Holdings,' DA MP Toby Chance said in a statement following the minister's appearance. 'It is Tau's duty to ensure that conflicts of interest between the bidders and government are picked up, and his lack of awareness of possible links between Deputy President Paul Mashatile, his family and shareholders in Bellamont Gaming is simply unacceptable.' Watch the meeting here: NOW READ: Ithuba poised to run Lottery for next year — despite legal concerns
