Court challenges lottery licence decision by Minister Tau

Minister of Trade, Industry, and Competition Parks Tau is facing mounting pressure after a losing bidder for the fourth lottery licence, Lekalinga (RF) Pty Ltd, applied to the Gauteng High Court, Pretoria, seeking to review and set aside the decision to award the licence to Sizekhaya Holdings.

The court application comes hot on the heels of the DA’s demand for Tau to appear before the Portfolio Committee on Trade, Industry and Competition to clarify how he selected Sizekhaya Holdings and how he struck a deal with Ithuba Holdings, the current operator of the National Lottery.

The DA has written to the chairperson of the portfolio committee, Mzwandile Masina, demanding that Tau and the National Lotteries Commission (NLC) chairperson, Barney Pityana, appear before the committee to account for the "opaque manner" in which Sizekhaya Holdings was appointed as the new licence holder.

"We are concerned about the lack of transparency in the appointment process," said Toby Chance, DA spokesperson on Trade, Industry and Competition. 

"There are reports that many of the Lotto's 17 000 ticket machines are not operational, due to technical problems emanating from a switch of systems. This is unacceptable."

Lekalinga (RF) Pty Ltd, a Serbian-based company that teamed up with local partners, has filed a court application that seeks to force Tau to produce the record of his decision when awarding the licence to Sizekhaya Holdings. 

The company, founded by Vladimir Vukovic, is questioning whether Sizekhaya could lawfully be awarded the licence, given its alleged non-compliance with some of the conditions bidders had to adhere to.

Vukovic raised concerns regarding Sizekhaya's alleged links to the JSE-listed gaming group Goldrush and the potential for indirect financial interests held by prohibited persons.

"The record should reveal the extent to which the minister assessed whether any political party or political office-bearer holds a direct or indirect financial interest in Sizekhaya and ensured compliance with the applicable prohibitions," he said.

Tau’s spokesperson, Yamkela Fanisi, said Tau respected the decision made by Vukovic.

"The minister respects the decision by those who were not successful bidders... He believes the process was credible and followed due process. At a time when the portfolio committee calls us to account, we will do so," Fanisi said.

Meanwhile, Tau has applied for leave to appeal against a recent court ruling that set aside his decision to grant a 12-month temporary licence to Ithuba Holdings.

The appeal, lodged with the Gauteng High Court, Pretoria, effectively allows Ithuba to continue running the lottery until the appeal outcome is reached.

Cape Argus