Holding Company Sizekhaya denies any political influence in securing the lottery license award.
In the heart of South Africa's bustling business landscape, Sizekhaya Holdings, a prominent gaming subsidiary, finds itself at the centre of a controversy surrounding the awarding of the national lottery license. The company, along with its sister company Bellamont Gaming, holds a significant stake in the venture, with Sizekhaya Holdings accounting for 7%, Bellamont Gaming for 5%, and Dr. Khumo Bogatsu, sister-in-law of Deputy President Paul Mashatile, owning a modest 2% stake in one of the subsidiaries.
The controversy began when the losing bidder, Lekalinga, initiated a court application to have the decision to award the licence to Sizekhaya reviewed and set aside. The application requested the minister to produce the reasons behind the decision and investigate any possible direct or indirect political interests in Sizekhaya. The Democratic Alliance (DA) also called for a comprehensive and independent investigation into the award process, citing conflicts of interest within the evaluation committee and possible political favoritism benefiting Sizekhaya Holdings.
However, Sizekhaya Holdings strongly denies any impropriety or political influence, asserting that the licence was awarded solely on the merits of their bid, their knowledge of gaming, and their commitment to enhancing the lottery’s contributions to good causes in South Africa. The company welcomed government investigations, emphasizing their commitment to transparency and cooperation to clear any doubts about the integrity of the award.
Moses Tembe, president of Sizekhaya Holdings, stated that no politician, including Deputy President Paul Mashatile, has a financial stake in the consortium's bid. He also mentioned that other prominent names in the South African business sector, including shareholders of competing consortia, were present in a recent trip to France, where he participated in an event in his capacity as an entrepreneur.
As of the latest reports in early July 2025, the investigations are ongoing or in the process of being called for, and Sizekhaya Holdings expressed readiness to cooperate. No definitive public outcome of the investigations or court rulings has been reported yet.
The company views the impending investigation as an opportunity to demonstrate their real capabilities and reinforce public confidence. They hope that a thorough investigation can dispel any doubts and allow for the beginning of a new phase of the national lottery based on trust and responsibility.
Meanwhile, the Ministry of Trade and Industry has confirmed it will open an inquiry into the national lottery licensing process. The SiGMA Central and Eastern Europe, an influential event in the gaming industry, is expected to take place in Italy from 3 to 6 November 2025, with Sizekhaya Holdings likely to participate, aiming to showcase their commitment to transparency and their potential to contribute positively to the gaming sector.
Executives of Sizekhaya Holdings believe that a well-conducted and transparent conclusion of the investigation will allow efforts to focus on expanding the reach of the lottery, increasing funds for social causes, and providing a fairer and more engaging gaming environment for South Africans.
- The controversy surrounding the national lottery license has led Lekalinga, the losing bidder, to initiate a court application, seeking a review of the decision and an investigation into any political interests potentially influencing Sizekhaya Holdings' bid.
- In preparation for the SiGMA Central and Eastern Europe gaming industry event in Italy, Sizekhaya Holdings, with their commitment to transparency, aims to demonstrate their real capabilities and potentially positive contributions to the gaming sector.
