LOTTERY LICENCE COURT BATTLE

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LOTTERY LICENCE COURT BATTLE

The Economic Freedom Fighters (EFF) has intervened in ongoing litigation concerning the awarding of the fourth National Lottery Licence. This is after every attempt to resolve the matter through Parliament, and the Executive was ignored despite there being clear evidence of several discrepancies in the awarding of the license to the ANC-linked Sizekhaya Holdings. 

The intervening challenge comes after months of unexplained delays and cautions around political exposure and capacity with regards to Sizekhaya Holdings, which was announced as the winning bidder. Concerningly, the Minister has provided no clarity on how Sizekhaya met the mandatory requirements, including the requirement that bidders be capable of taking over operations within five months, something Sizekhaya is unable to do, according to evidence filed by the Minister himself. 

The EFF is therefore intervening in this existing case precisely because we have noted from the very beginning that the awarding of the fourth lottery licence violated the principles of transparency, fairness, and the strict anti-political influence provisions of the Lotteries Act. Our constitutional challenge centres on section 13(2)(b)(iv) of the Lotteries Act, which prohibits only direct financial interests by political parties and political office-bearers in lottery operators.  

The law is silent on indirect interests, such as those held through spouses, siblings, children, in-laws, family trusts or layered corporate structures. This loophole is regularly exploited, as shown in the award to Sizekhaya Holdings, whose shareholders include individuals closely tied to senior office bearers in government. 

A provision intended to prevent political influence, yet drafted so narrowly that it permits easy circumvention, fails the rationality test, undermines the constitutional standards of lawful and transparent procurement under section 217, and weakens the state’s obligation under sections 7(2) and 195 to prevent corruption. Our intervention therefore asks the Court to declare the provision constitutionally defective and to interpret the Act in a manner that prohibits both direct and indirect political interests. Before approaching the courts, the EFF made extensive attempts to address these concerns through the institutional channels that are supposed to provide oversight over the National Lottery Licensing process. In the Portfolio Committee on Trade, Industry and Competition, the EFF consistently raised concerns about the loopholes in the Act, the vague and irregular nature of the evaluation process, and the political proximity of certain bidders. These concerns were dismissed, debated superficially, or ignored entirely. 

The Committee failed to exercise its constitutional responsibility to hold the Executive accountable or to intervene in a process that was clearly compromised. We further cautioned the Minister of Trade, Industry and Competition in writing that the licence process was vulnerable to manipulation, and the Minister ignored these warnings. 

When the matter was escalated to the Presidency, outlining the political risks, our submissions were met with silence and inaction. Even our attempt to obtain the full court record of the existing review, so as to avoid duplication and assist the court with a complete factual foundation were obstructed, despite the fact that court papers are public documents. Having exhausted every political and administrative avenue: Parliament, the Minister, and the Presidency, the courts remained the only constitutional mechanism capable of addressing a defect that has enabled repeated acts of corruption. 

The Lottery is a R58-billion public concession meant to support community organisations, schools, sports development and vulnerable groups. It cannot continue to be a playground for politically connected networks who hide behind families, trusts and shell companies while looting what should rightfully reach the poorest. 

The EFF remains firmly committed to ensuring that South Africa’s legislative framework closes every avenue for political capture. We will not permit the fourth lottery licence to become yet another chapter in the long and painful history of state capture. 

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