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Lottery Licence Impropriety Allegations Must Be Investigated Independently and Forensically

Statement by Toby Chance MP – DA Spokesperson on Trade, Industry and Competition:

The Democratic Alliance has today written to Minister Parks Tau demanding that the allegations of improprieties in implementing the 4th lotto licence are investigated in an independent and transparent process.

The DA has persistently called for a fully independent, forensic, and transparent investigation into the entire awards process of the 4th Lottery licence. That the NLC is investigating these fresh allegations is a welcome first step, but merely underlines the need for an independent process.

The DA has seen correspondence and other documentation on the contractual relationships between Sizekhaya Holdings, to whom Minister Tau awarded the 4th Lotto licence in May last year, and SocialPro, a Durban-based company that played a central role in compiling Sizekhaya’s bid.

SocialPro is alleging that Sizekhaya Holdings has irregularly dropped it as a supplier as it prepares to implement the licence from June this year. SocialPro was taken on as a marketing and strategic contractor as Sizekhaya was preparing its licence bid.

In Minister Tau’s response to the DA’s PAIA application for his reasons for awarding the 4th licence to Sizekhaya, he makes specific reference to the quality of Sizekhaya’s marketing materials, suggesting that the strength of the bid’s marketing plan played a part in convincing him to award the licence to Sizekhaya.

The controversies surrounding the lotto licence and Sizekhaya extend beyond Ithuba Holdings’ court challenge to the licence award. Allegations of improper links between Deputy President Paul Mashatile and Sizekhaya merit far greater attention, given his sister-in-law is a shareholder in the consortium that owns Sizekhaya. The failure of the NLC’s bid committees to pick up the involvement of political actors in other discarded bids is disturbing, and this error must be explained and accounted for.

It is now essential to establish whether the terms of the award of the Lotto licence have been breached by Sizekhaya, and if so whether Sizekhaya is being held accountable for such a breach.

The Democratic Alliance will continue to probe all matters relating to the Lotto licence to ensure the truth comes out and this issue is not cast aside as just another grubby cover up by politically-connected insiders.

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