Malema says the EFF reserves the right to pursue legal remedies with regard to the awarding of the National Lottery Licence.
EFF leader Julius Malema has demanded clarity from President Cyril Ramaphosa on the awarding of the National Lottery Licence to Sizekhaya Holdings and the company’s alleged political ties to Deputy President Paul Mashatile.
Trade, Industry and Competition Minister Parks Tau awarded the eight-year licence to Sizekhaya in May, handing over the reins from long-term operator Ithuba.
Sizekhaya
Sizekhaya is part-owned by Bellamont Gaming, a company co-owned and co-directed by Mashatile’s sister-in-law Khumo Bogatsu and prominent KwaZulu-Natal (KZN) businessman Moses Tembe.
Tembe is also the chair of the consortium, while Sandile Zungu – another prominent KZN businessman – holds directorship.
Furthermore, Zungu is a stakeholder in Goldrush, a gambling company that has shares in Sizekhaya.
‘Grave concern’
In the letter, Malema expressed “grave concern” over the apparent politics of patronage and the “intricate web of familial and political connections”.
He said the EFF had previously cautioned against this appointment due to, among other things, Zungu and Tembe’s affiliation with the ANC.
“The involvement of the Deputy President adds a troubling dimension to this matter. It has come to light that Khumo Bogatsu – a co-owner of Bellamont Gaming, which is also a shareholder in Sizekhaya Holdings – is the twin sister of South Africa’s Second Lady, Humile Mashatile, the wife of Deputy President Paul Mashatile,” Malema wrote.
“Furthermore, Ms Bogatsu is engaged to businessman Sbu Shabalala, who is a cousin of Moses Tembe, the lead figure in Sizekhaya and co-owner of the Goldrush Consortium.”
Malema said these links suggest the awarding of the lottery licence may have been influenced, which constitutes state capture.
ALSO READ: Tau vows to investigate after Mashatile’s sister-in-law linked to multi-billion lotto operator licence
Malema demands answers from Ramaphosa
He proceeded to demand answers to the following questions:
- Are you aware of the extent of political ties involved in the appointment of Sizekhaya Holdings as the National Lottery operator?
- If you are aware, do you support the decision made by Minister Tau despite serious procedural irregularities, conflicts of interest, and the defiance of parliamentary oversight?
- Have you personally engaged Deputy President Mashatile on this matter, and if so, what explanation has he provided regarding the involvement of his immediate family in a multi-billion-rand public contract?
- In light of the State Capture Commission and your stated anti-corruption stance, what is your position on politically exposed persons and their close relatives benefiting from government contracts or public licences such as this one?
Possible legal action
Malema said the EFF believes the National Lottery must serve the developmental interests of South Africans, not those of the political elite.
“The level of political entanglement in this deal, compounded by Minister Tau’s refusal to be held accountable, undermines the legitimacy of this award and sets a dangerous precedent for future public procurement.”
He said his party reserves the right to explore legal options, including approaching the courts to “compel disclosure of the appointment process and, where necessary, to have these appointments reviewed and set aside on grounds of irrationality, procedural irregularity, or breach of public governance principles”.
Mashatile addresses allegations
Mashatile has denied suggestions of political interference and argued that Bellamont Gaming was not doing business with the Presidency.
He said it was unfair to question why his relatives were conducting business.
“There are so many people who know me in this country – family, children, cousins and friends. Where must they do business, in Zimbabwe? Out of this country,” Mashatile asked during an interview with Sowetan on Tuesday.
“They can do business, as long as I’m not involved, not because they know me. Because once you say Mr Mashatile is capable of influencing, even if he is sitting in his house, it’s unfair. You must be able to say he went there to interfere.”
ALSO READ: WATCH: Mashatile denies family tied to multibillion-rand lottery deal
Bosa requests transparency
EFF is not the only party that has expressed concern over the awarding of the licence.
In May, Musi Maimane’s Bosa called for full transparency from Tau, requesting a list of adjudicators and consultants involved in the lottery tender process.
The party also asked for their disclosures and declarations of interest, as well as a report to parliament outlining the evaluation criteria and scoring of each bid.
“South Africans have a right to know whether this process has been conducted above board or whether it is tainted by insider influence or political interference,” the party said in a statement.
“We will not allow South Africa’s public resources, or the hopes of the vulnerable communities who depend on lottery funding, to be hijacked by cronyism or corruption.”
DA asks Tau to appear before committee
The DA also requested Tau and the National Lotteries Commission to appear before the Parliament’s trade and industry portfolio committee to answer questions concerning the licence.
During the meeting on 24 June, Tau said he would investigate the conflict-of-interest allegations concerning Sizekhaya – much to the DA’s dissatisfaction.
“The DA is astounded that Minister of Trade, Industry and Competition, Parks Tau, came to Parliament today to effectively admit to committee, that he had failed in his executive duties to properly oversee the appointment of the new Lottery Operator Sizekhaya Holdings,” DA MP Toby Chance said in a statement following the minister’s appearance.
“It is Tau’s duty to ensure that conflicts of interest between the bidders and government are picked up, and his lack of awareness of possible links between Deputy President Paul Mashatile, his family and shareholders in Bellamont Gaming is simply unacceptable.”
Watch the meeting here:
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