Two unsuccessful bidders for South Africa’s lucrative national lottery licence have demanded answers from Trade, Industry & Competition Minister Parks Tau, while another has launched a legal challenge to overturn the decision, according to a report in the Sunday Times.
The National Lotteries Commission (NLC) and Tau have faced five consecutive court defeats in recent months over the R100bn tender. The NLC withdrew an appeal application last Friday, anticipating another loss.
Legal Challenges Mount
Losing bidders Ringeta and Ithuba have formally requested reasons from Tau for selecting Sizekhaya Holdings, while Lekalinga has filed a court review to set aside the decision.
Lekalinga’s founder, Vladimir Vukovic, alleges in court papers that Tau failed to assess indirect financial interests, violating the National Lotteries Act. He claims Sizekhaya and its shareholder Gold Rush share the same registered address, raising conflict-of-interest concerns.
Vukovic also questioned why Tau delayed announcing the winner in December, citing “further evaluation” without clarity. He argues Sizekhaya cannot meet the operational timeline set in the bid requirements.
Another Court Defeat for NLC
This week, the Pretoria High Court dismissed Tau and the NLC’s appeal against a ruling that declared a 12-month temporary licence for Ithuba invalid and unlawful. Judge Sulet Potterill found the process lacked fairness and transparency.
The court suspended the invalidity for five months, drastically shortening the interim licence period. Potterill ruled that Tau’s delays in awarding the main licence amounted to a failure to act.
NLC Backs Down on Appeal
NLC spokesperson Rudzani Tshigemane admitted they withdrew their latest appeal, expecting another unfavorable ruling. However, they maintain previous judgments were “incorrect.”
With legal pressure mounting, the future of South Africa’s lottery licence remains uncertain as losing bidders push for transparency and a fair review process.
