Gold Rush Consortium’s R180bn lottery appointment sparks fury over alleged cronyism in South Africa
Political parties, the EFF and BOSA, slam the selection of ‘politically connected bidder’ as new National Lottery operator.
South Africa.- In a move that has ignited fierce political backlash, the Gold Rush Consortium has secured a multi-billion rand contract to operate South Africa’s National Lottery – a decision now mired in allegations of cronyism, conflict of interest and backroom dealings.
Led by KwaZulu-Natal businessmen Moses Tembe and Sandile Zungu, Gold Rush is poised to take the reins from current operator Ithuba at the end of May 2025. The eight-year contract, worth an eye-watering R180 billion ($9.6bn), would place one of South Africa’s most lucrative state functions into private hands, and not without controversy.
The Economic Freedom Fighters (EFF) were quick to slam the deal, labelling it “an assault on transparency” and “indicative of a broader culture of patronage”. The party is particularly alarmed by the reported links between Gold Rush and two members of the National Lotteries Commission (NLC) bid evaluation committee: Thiran Marimuthu, who attended Gold Rush’s anniversary event, and Anne-Marie Pooley, who has financial ties to a Pretoria venue operating the consortium’s gaming machines.
“These connections not only compromise the independence of the evaluation process but expose the entire procurement to the risk of collusion and manipulation,” EFF national spokesperson Sinawo Thambo said in a statement.
Further criticism came from Build One South Africa (BOSA), which is demanding full transparency and has filed a Promotion of Access to Information Act (PAIA) request to uncover the identities and potential conflicts of those involved in the adjudication.
“South Africans have a right to know whether this process has been conducted above board,” BOSA spokesperson Roger Solomons said in a statement, calling on Trade, Industry and Competition Minister Parks Tau to release all evaluation criteria, scores and panel member declarations.
With just weeks left before the handover, concerns are mounting that the transition could jeopardise essential infrastructure, digital systems and – more crucially- the Lottery’s funding of community, youth and educational programmes.
“This politically motivated appointment will have disastrous consequences for the functionality of the National Lottery,” warned the EFF.
Both opposition parties are now calling for urgent parliamentary intervention, vowing not to let a “crucial national institution be hijacked by political favouritism”.
