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Daily Maverick
19 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
a day 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
2 days 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 South African
3 days ago
- Business
- The South African
ITHUBA granted last-minute 12-month temporary lottery licence
ITHUBA has confirmed that the National Lottery will continue without interruption from 1 June 2025. In a press statement issued late on Saturday evening, ITHUBA stated that: 'After careful consideration and prioritising the interests of South Africans, ITHUBA has reached an agreement with the Minister of Trade, Industry and Competition, Parks Tau, 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 operate the National Lottery with integrity, transparency, and for the benefit of South Africans. 'Participants can be rest assured that all games, draws, and prize pay-outs will continue as normal – with the same exciting jackpots and seamless service that they are accustomed to. 'ITHUBA continues to serve its core mandate: raising funds for the National Lottery Distribution Trust Fund (NLDTF) to uplift communities across South Africa.' Trade, Industry, and Competition Minister Parks Tau has issued a 12-month temporary licence to ITHUBA Holdings. Tau said in a statement that this is in a bid to avoid a potentially disruptive pause in operations at the National Lottery. In a statement, Tau confirmed that the 12-month appointment takes effect on Sunday, 1 June following negotiations. This comes despite the high court ruling that issuing the incumbent ITHUBA a 12-month temporary licence is unconstitutional and favoured the current operator. Tau confirmed he is appealing this judgment as another court judgment confirmed his authority to make such an appointment in the public interest. This follows concerns that ticket sales would cease until the new licence holder, Sizekhaya, could take over operations next year. Concerns were also raised about the impact on funds to charities that benefit from the National Lottery Commission. Let us know by leaving a comment below, or send a WhatsApp to 060 011 021 1 Subscribe to The South African website's newsletters and follow us on WhatsApp, Facebook, X and Bluesky for the latest news.
The Citizen
3 days 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
