Sizekhaya Holdings Denies Allegations of Impropriety in National Lottery Licence Award
Sizekhaya Holdings has issued a firm denial regarding recent allegations of impropriety and political influence surrounding its award of the national lottery licence in South Africa. The consortium emphasizes that the decision was made based solely on the strength of its bid.
A statement from Tembe, Chairman of Sizekhaya Holdings, clarified: “Sizekhaya is not guilty of any impropriety. Neither the Deputy President nor any other political entity or individual has a financial interest – direct or indirect – in our bid. As stated in Parliament on Tuesday, the Deputy President had no influence in the adjudication committee or the National Lotteries Board. Neither Bellamont Gaming nor Sizekhaya ever discussed our bid with the Deputy President.”
The company dismissed claims that political connections played a role in the awarding process, asserting that the consortium’s success was due to its knowledge of gaming, its commitment to generating more funds for government and good causes, and the quality of its bid.
Prominent KwaZulu-Natal businesspeople Moses Tembe and Sandile Zungu are among the shareholders in Sizekhaya Holdings. Tembe explained that Bellamont Gaming, in which he and Advocate Khumo Bogatsu are directors, holds a 7% stake—comprising 2% owned by Bogatsu and 5% by Bellamont Investments. He stated that he invited Bogatsu to join him in taking a stake in Sizekhaya based on her qualifications and experience navigating industry legalities. He emphasized that despite her relationship with Mashatile, Bogatsu is fully entitled to pursue her legitimate business interests.
Tembe added: “The narrative that Zungu and I are controlling shareholders is unfounded. Sizekhaya is a very diversified consortium. As chairperson of the board, I happen to be the face of the company.”
He further stated that the company welcomes scrutiny and is confident in its integrity: “Sizekhaya welcomes scrutiny intended to shed light on who we are and what we bring to the table. But we decry the baseless accusations, malicious rumour-mongering, mudslinging, and personal attacks on shareholders and directors that have grown in volume since we were announced as the winners.”
The company also expressed support for the Minister of Trade, Industry and Competition, Parks Tau,’s commitment to investigate any perceived conflicts. “We, therefore, welcome the Minister’s commitment to investigate any perceived conflicts as Sizekhaya has done absolutely nothing wrong,” Tembe stated.
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In response, DA spokesperson on Trade and Industry Toby Chance announced that a letter has been sent to the minister urging an investigation. He warned that if the investigation reveals any concealment or misconduct, the decision to award the licence could be reviewed, emphasizing the importance of transparency given the substantial public funds involved.
Action SA MP Alan Beesley expressed concern over ongoing allegations, noting the longstanding issues of corruption within the National Lotteries. “The National Lotteries has been plagued with corruption for many years, and it appears this corruption is continuing unabated. The National Lotteries was meant to support good causes and the most vulnerable in our society but sadly continues to support the corrupt and political elite,” he said. Beesley also stated he would monitor developments closely and may request relevant authorities to scrutinize the awarding process further.
