The battle for the lucrative Lotto tender is heating up.
In a hotly contested, yet unpredictable race to operate the National Lottery in South Africa, only one of the eight shortlisted consortiums will hit the R180 billion jackpot.
However, growing concerns about allegations of flawed processes seem to have forced Trade, Industry and Competition Minister Parks Tau to postpone the announcement of the new lottery operator, which was scheduled for the end of September.
The National Lottery tender is considered to be one of the biggest in the country. Since its inception, it has attracted interest from both politicians and businesspeople. Insiders say the National Lottery Commission (NLC) board will recommend two company names to Tau to make a final decision.
Due to the high stakes, the lottery licence has also attracted controversy and court cases from some who have felt hard done by.
With the licence for current operator Ithuba set to expire in June 2025, the process of awarding the new licence has been gaining momentum.
Former minister of trade, industry and competition Ebrahim Patel extended the operators’ term by 18 months after it expired last year.
City Press reported during the week that there were allegations of irregularities regarding the processes for awarding the new licence, with the NLC board accused of playing a consultant role for certain bidding companies.
READ: Fresh R180 billion lottery tender attracts controversy
This also forced the Build One SA (Bosa) party to write to Tau, demanding answers about the role of the NLC board’s members and processes.
A source said that announcing the winning consortium now would enable a smooth handover and setting up of the structures.
City Press understands that the founder and CEO of Ithuba, Charmaine Mabuza, has also applied for another term to run the lottery. She is married to the well-known Advocate Eric Mabuza.
Other shortlisted companies include the Thebe Investment Corporation, which has a strong link to the ANC; Hosken Consolidated Investments led by Johnny Copelyn and Yunis Shaik; the Gold Rush Consortium led by AmaZulu football club owner Sandile Zungu; the Umbulalelo Consortium, led by Afrirent Holdings; and Giya Games.
One of the bidders said bidding for the lottery was expensive, costing R55 000 just for the tender document. “After that, there was a R3 million non-refundable fee for the tenders,” said the bidder, adding that they were confident about their bid.
The source said:
We don’t know who the other bidders are, but if this tender is awarded based on fairness and not political influence, I can tell you that we’ll win.
Responding to City Press’ questions through its lawyer, Tebogo Malatji, the NLC board said the minister had yet to announce changes to the timetable relating to the fourth National Lottery application process. According to the timetable, Tau is expected to announce the bidding outcome by the end of this month.
However, insiders say he has postponed the announcement because he wants to deal with the issues surrounding it and consult further to avoid legal comebacks afterwards.
Malatji said the NLC had not received any complaints or objections relating to the fourth National Lottery application process.
He also denied that the NLC board members had been appointed as consultants.
“The board doesn’t act as a consultant and remains a board appointed by the minister,” he said.
He confirmed that the board was in the process of evaluating and adjudicating the eight applications it had received.
The board doesn’t shortlist preferred bidders. It’s responsible for the evaluation and adjudication of the applications and hasn’t concluded those processes yet.
He explained that the NLC was not in a position to release the names of the applicants, as that could compromise the integrity of the evaluation and adjudication process.
No board members had met any of the applicants, he added.
“The licence agreement provides for various mechanisms and measures for the board to oversee the current operator’s performance. There’s currently no dispute between the NLC and the current operator in regard to the fulfilment of its obligations in terms of the licence agreement,” said Malatji.
City Press previously reported that Bosa MP Nobuntu Hlazo-Webster had raised several concerns regarding the tender and wanted Tau to provide answers on the subject of the processes involved.
The winning company will also be expected to work with various charities and NGOs to uplift the standard of living of many who are unable to earn a salary.
At the time of going to print, the department of trade, industry and competition was not available for comment, but promised to respond to questions on Thursday.
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