Trade & Industry Minister Parks Tau has finally disclosed his reasons for awarding the fourth lottery licence to Sizekhaya Holdings, saying it was a ‘close race and a tight finish’, according to GroundUp.

The winning bidder Sizekhaya Holdings, which he announced at the end of May 2025, ‘pipped the others to the post’, Tau wrote in an affidavit filed in the Gauteng High Court (Pretoria).

This was because it had presented a well-balanced bid, had impressive technology partners, and its projected revenue was ‘suitably ambitious, yet credible’.

However, the Minister glossed over concerns of political involvement and connections of some of Sizekhaya’s shareholders, saying only that he had instructed the National Lotteries Commission to investigate the alleged connections to Deputy President Paul Mashatile.

After months of silence regarding why he delayed the announcement of the successful bidder for the fourth licence, the Minister was compelled, by law, to produce his reasons for this, and why he chose Sizekhaya, in two court challenges seeking to review the award.

These have been launched by Lekalinga and Ithuba Lottery (a sister company of Ithuba Holdings), which had the third licence and is still presently running the lottery in terms of a temporary licence issued by Tau under his special powers.

The aggrieved bidders specifically raised issues with Sizekhaya’s shareholders Moses Tembe and Sandile Zungu and the ANC, including reported links to Mashatile.

They also pointed to the fact that Tau had given Sizekhaya a year’s grace period in which to take over running the lottery, contrary to the Request for Proposals , which had stipulated that the winning bidder needed finance in place and the ability to take over the running the lottery in a ‘continuous and seamless’ transition.

It has emerged in Tau’s reasons that Lekalinga was one of the lowest ranked bidders.

Tau also disclosed that he had overruled his own advisory panels, sidelining a bid by Ringeta, because of its links to the Batho Batho Trust, a known donor to the ANC.

‘My decision was delayed because I was not convinced that the processes and outcomes were correct. This prompted speculation and even accusations that I was trying to favour one or other applicants. Nothing could be further from the truth. I refused to simply rubber stamp recommendations,’ he said.

He said he had not provided details of his concerns because he wanted to protect the process, reports GroundUp.

Regarding his choice of the ‘reserve’, Ithuba Lottery, he said its technology partner was local and it also held a higher empowerment rating.

The aggrieved bidders are expected to file further affidavits based on the Minister’s reasons.

The Minister and other respondents will then have to file answering affidavits before trial dates are set.

Full GroundUp report