Tau orders probe into lottery license winner amidst claims of ANC ties
Sizekhaya Holdings secured the eight-year lucrative licence in May 2025, amid concerns about transparency and fairness in the bidding process.
South Africa.- Trade and Industry Minister Parks Tau has directed the National Lotteries Commission (NLC) to examine new claims of ties between Sizekhaya Holdings, the winner of South Africa’s fourth national lottery licence, and Deputy President Paul Mashatile. The probe comes as Ithuba Lottery, a rival bidder, pursues legal action to block the awarding of the licence, citing potential conflicts of interest and procedural flaws.
Sizekhaya secured the eight-year lucrative licence in May 2025, amid concerns about transparency and fairness in the bidding process. Ithuba, which placed second and currently runs the lottery under a temporary extension, filed an urgent application in the Pretoria High Court in September, seeking an interdict to prevent Sizekhaya from taking over while a full review of the decision proceeds.
Ithuba’s court papers point to Mashatile’s alleged indirect stake in Sizekhaya through family and business associates. These include his sister-in-law, Khumo Bogatsu, a Co-owner of Bellamont Gambling, which holds shares in Sizekhaya; Moses Tembe, Sizekhaya’s Chairperson and a Bellamont shareholder; and Sandile Zungu, a consortium member with reported ANC connections to Mashatile.
Investigative reports from amaBhungane in June 2025 exposed these links, citing Bogatsu’s directorship in Bellamont and evidence of Mashatile’s personal relationships with the group members, backed by photos and videos.
In its argument, Ithuba asserts that the evaluation process prioritised subjective scoring over the criteria specified in the request for proposals. Attorney Johan Roodt, representing Ithuba, described the oversights as “glaring and clear”, adding that the minister and commission failed to assess indirect political interests as required by the Lotteries Act and bidding rules.
However, Tau rejected the claims in his affidavit, arguing that Ithuba failed to provide concrete proof of Mashatile’s financial involvement.
He said: “I am satisfied that there was no prohibited direct or indirect financial interest in Sizekhaya by a political party or political office bearer.”
He described the allegations as based on “media speculation and innuendo” and emphasised that the investigation is a step to uphold the process’s integrity, not admit to any wrongdoing.
Ithuba is not the only entity demanding a review; since June 2025, the Democratic Alliance has been pushing for a similar investigation, labelling the award a potential scandal tied to ANC figures. The party submitted a Promotion of Access to Information Act request in July to access bidding documents and has attended related court hearings.
The National Lotteries Commission has confirmed the ongoing inquiry but redacted details in court filings. Sizekhaya has contested the application, but its full response remains confidential pending a redacted version.
The case is scheduled for argument from October 28 to 30, 2025. If granted, the interdict could pause lottery operations, affecting funds for charities, education and sports. Tau warned that blocking the transition would harm the public by disrupting contributions worth billions. He called Ithuba’s lawsuit an “attempt to prioritise its commercial interests over the undeniable public good served by a fully operational lottery”.
