KZN businessman Tembe denies claims of 'cronyism' after Sizekhaya secures lottery licence
JOHANNESBURG - KwaZulu-Natal (KZN) business mogul, Moses Tembe has hit back at his detractors, denying claims of "cronyism" after his consortium won the highly sought-after national lottery licence.
Tembe's Sizekhaya Holdings was recently announced as the fourth national lottery and sports pool licence holder, replacing Ithuba Holdings.
This is one of government's most expensive tenders, worth about R200 billion over eight years.
Following the announcement, the Economic Freedom Fighters (EFF) and Build One South Africa (BOSA) raised questions about the consortium's links with the African National Congress (ANC).
ALSO READ: Some opposition parties want Minister Tau to publicly disclose details of Sizekhaya Holdings, National Lottery contract
While one of the shareholders, Sandile Zungu, has demonstrated links with the biggest party in the Government of National Unity, there are no public links with Tembe.
Tembe said that Sizekhaya won the lotto licence fair and square.
"What won it for Sizekhaya was not the backhanders or cronyism as our detractors would claim, it was our promise to elevate the lottery to new heights, to generate more money for good causes."
Tembe said that Sizekhaya promised to hand over its intellectual property to the government once its licence expired. This would allow government to run its lotto operations in-house.
Sizekhaya's contract is only set to take effect next June after Ithuba was granted a temporary extension.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Daily Maverick
10 hours ago
- Daily Maverick
Lottery jackpot — Mashatile's family tied to new multibillion-rand operator deal
Adding to previous concerns over possible political interference in the award of the fourth national lottery licence, it has emerged that Deputy President Paul Mashatile's sister-in-law has a stake in the game. Sizekhaya Holdings, which landed the lucrative licence to operate South Africa's national lottery for eight years, has links to Deputy President Paul Mashatile. Among Sizekhaya's shareholders is Bellamont Gaming, a company co-owned and co-directed by Khumo Bogatsu – Mashatile's sister-in-law – and Moses Tembe, the KwaZulu-Natal businessman who chairs Sizekhaya and seems close to Mashatile. Bogatsu is the twin sister of Humile Mashatile, Mashatile's wife. The deputy president and Humile were married in a lavish set of celebrations attended by the political and business elite in March 2023. Bellamont Gaming was registered nine months later, in December 2023, with Tembe and Bogatsu as its founding and still only directors. Bellamont and consortium partners then registered Sizekhaya just days before last year's February 3 deadline to contest the fourth national lottery licence. Minister of Trade, Industry and Competition, Parks Tau, finally announced the award to Sizekhaya on May 28 this year after protracted delays and what he called 'this arduous exercise' of evaluating eight applications. The National Lotteries Commission, which answers to Tau, helps adjudicate licence bids. The lottery licence is almost literally a licence to print money. The outgoing operator, Ithuba Holdings, reported a R7.28-billion turnover in 2024. Bogatsu and Tembe's joint involvement adds to widespread fears that the politics of patronage may have intruded on the award process. Tembe stays in a palatial residence on Bellamont Road above Umdloti Beach, north of Durban – a road that lent its name to Bellamont Gaming and about a dozen other companies in Tembe's corporate arsenal. People from the area, who asked not to be named, said that Mashatile and Humile had frequented Tembe's home, particularly last year when the deputy president's sizable motorcade made itself known. In February last year, they allegedly stayed over for around six days ahead of the ANC's election manifesto launch in Durban. A picture shows Tembe and Mashatile together at St Paul's Anglican Church where the party was honouring those who lost their lives in a bus crash returning from the manifesto launch at Moses Mabhida Stadium. The manifesto launch was on 24 February, three weeks after the Lotto bid deadline. Tembe has been seen at Mashatile's side in public, including in May this year as part of the business delegation that accompanied the deputy president to France for an investment conference. 'Nothing to do with the deputy president' In a terse response to amaBhungane's questions, Mashatile's spokesperson, Keith Khoza, denied the deputy president interfered. 'He has nothing to do with the licence award process as it does not fall within the ambit of his delegated functions nor did he participate in any way, shape or form. Similarly, the business relationship with any of the parties involved has nothing to do with the [deputy president] and his wife.' Khoza did not respond to detailed questions about Mashatile's relationship with Tembe and the new lotto operator, nor whether he was briefed – formally or informally – on the lottery bid. National Lottery Commission spokesperson Rudzani Tshigemane referred questions to Tau's department, which did not respond to amaBhungane's query. Sizekhaya Holdings, answering on its, Bogatsu and Tembe's behalf, said it rejected 'with the utmost seriousness, any suggestion that our successful bid for the national lottery licence was influenced by political proximity'. Bellamont-Sizekhaya web Among numerous other business interests, Tembe directs 14 companies bearing the Bellamont name and is active in a wide swathe of economic activity. He has served as secretary-general of the KwaZulu-Natal branch of the National African Federated Chamber of Commerce and Industry, president of the Durban Chamber of Commerce and Industry, and board member of the South African Chamber of Commerce UK and KwaZulu-Natal National Business Initiative. He also co-chaired the KwaZulu-Natal Growth Coalition with then-premier Sihle Zikalala. Bogatsu, for her part, has co-directed three companies with her sister – Mashatile's wife – though they have since been deregistered, according to company registration records. Neither the size of Bogatsu and Tembe's respective stakes in Bellamont Gaming nor Bellamont's in Sizekhaya has been made public. Sizekhaya confirmed Bogatsu held shares in Bellamont. It said Bellamont in turn was a 'minority shareholder' in Sizekhaya and 'a legally compliant gaming entity'. Publicly available information records the Goldrush Group as Sizekhaya's largest shareholder, with 50%, which will reduce to 40% when a stake is issued to a government entity in line with licensing conditions. Goldrush is in turn 59.4% owned by JSE-listed Goldrush Holdings, whose shareholders include Mauritian-based Astoria Investments and local investors Jan van Niekerk and Piet Viljoen. Another notable figure in Sizekhaya is ANC-linked businessman Sandile Zungu. He was nominated for the position of ANC KwaZulu-Natal chair in 2022 but decided not to contest after speaking to ANC leaders. Zungu, like Tembe, accompanied Mashatile to France in May this year. The delegate list records Tembe as representing his Bellamont Investments and Zungu his Zungu Investments. It was a visit that later drew media scrutiny over Mashatile's travel expenses and the company the deputy president kept. The delegation included a businessman under scrutiny by Johannesburg Water, an amaBhungane investigation has found. Sizekhaya said Tembe and Zungu attended the investment conference 'at the formal invitation of the South African Ambassador to France, Mr Nathi Mthethwa' and that they were 'present as part of a longstanding national effort to promote foreign investment'. Sizekhaya did not respond directly to a question about Mashatile's alleged stay at Tembe's house before the ANC manifesto launch, but said Tembe 'has hosted and interacted with trade unionists, religious figures and political leaders across the spectrum, including the ANC, IFP, DA, EFF, MK Party – and yes, Deputy President Paul Mashatile'. Regarding a picture that shows Tembe and Mashatile together at St Paul's Anglican Church in Durban where the party honoured party faithful killed in a bus crash after the launch, it said Tembe had been invited by the presiding minister, his cousin Reverend Thami Tembe. 'This was a private family engagement of spiritual significance, and it would be inaccurate to attribute any political motive to it.' 'Never concealed' Sizekhaya dismissed any suggestion that the company's successful bid was tainted by political connections. 'This is a defamatory inference that maligns not only Mr Tembe's business integrity but also undermines the credibility of the regulatory and adjudication systems of the Republic of South Africa.' Sizekhaya also said Tembe 'has never concealed his association' with the deputy president: 'Given Mr Mashatile's public role as the country's second citizen and the scrutiny which accompanies it, it would be entirely illogical – if not impossible – to obscure any such association.' The Lotteries Act provides that 'no political party in the Republic or political office-bearer [must have] any direct financial interest in the applicant or a shareholder of the applicant' for a lottery licence. Sizekhaya said it had fully complied with the Act: 'No arrangements exist that confer a direct or indirect financial benefit to any political entity.' Bogatsu, it said, 'is not a political office bearer and is fully entitled to pursue any legitimate commercial interest'. Controversy The awarding of the fourth lottery licence has garnered significant public attention, which has focused also on the apparent political ties of other bidders. Political parties Build One South Africa (Bosa) and the Economic Freedom Fighters (EFF) have been outspoken on the issue. Bosa submitted a Promotion of Access to Information Act application last October to access the identities of the people tasked with adjudicating the tender amid concerns of conflicts of interest. 'At R180-billion, the contract to operate the national lottery is the country's largest tender. Given the amount of money involved, the process followed requires a high duty of care to ensure no malfeasance or wrongdoing by any party involved,' Bosa deputy leader Nobuntu Hlazo-Webster said. The EFF last year raised red flags including over the involvement of Tembe and Zungu in Sizekhaya. 'The minister's refusal to answer direct questions … raises serious concerns about the legitimacy and lawfulness of the process,' spokesperson Sinawo Tambo said. The process of the award has not been without struggle, plagued by delays and court challenges. In December last year, Tau said he had identified 'matters that require further evaluation' and postponed his decision. He cited the need to ensure that the licensee's owners and managers were fit and proper persons. 'In addition, I must ensure that no political party or political office-bearer has any direct financial interest in the applicant or a shareholder of the applicant,' he said. DM
Eyewitness News
3 days ago
- Eyewitness News
Godongwana thinks political parties should be wholly funded from national fiscus
CAPE TOWN - Finance Minister Enoch Godongwana is of the view that political parties should be wholly funded from the national fiscus and not have to accept private donations. Speaking to the Independent Electoral Commission (IEC)'s political funding conference in Durban on Thursday, Godongwana said it's unacceptable that some political parties don't submit annual audited financial statements. Godongwana's own political party, the African National Congress (ANC), was among those fined by the Electoral Court last year for falling foul of the law in this regard. The finance minister questioned whether the IEC was the appropriate body to keep political parties in check over their finances, saying it puts the institution at risk of accusations of bias and a lack of independence. "I'm from the ANC. When they do it to us, we say they've been captured. When they do it to another party, they say Ramaphosa has sent them." With a court challenge still pending over plans to double the annual private funding limit to R30 million, while also raising the threshold for declaring donations to R200,000, Godongwana said he hoped the matter was settled before next year's local government elections. He said that the conference should consider the implications of political parties purely being funded by the state. "That raises the question: What is the optimal level of funding and what is the criteria for that? We complain that departments are inefficient. Should we fund political parties for inefficiencies as well?" Godongwana also hinted that if the revenue allowed, more money could be set aside to fund next year's local government election, in addition to the R1.4 billion already allocated in this year's budget.
The South African
3 days ago
- The South African
Lucky Lotto jackpot winner turns R30 wager into R39.5 MILLION!
ITHUBA, operators of the National Lottery in South Africa, have confirmed that there were two winners of the Lotto jackpot on Wednesday, 18 June. The jackpot stood at R78 977 677.80, meaning each of the winners will pocket R39 488 838.90. The first winning ticket was purchased through the Standard Bank banking app with a R200 wager using the quick pick selection method, while the second winning ticket was purchased at a Day and Night Superstore in Yeoville in Johannesburg, with a R30 wager, also using the quick pick selection method. The winner who played via a banking platform has been notified of their winnings by their bank, while ITHUBA has urged everyone else who bought a ticket in-store to check their tickets. The winning numbers were 10, 13, 27, 30, 38, 39 and the bonus ball was 16. 'This draw not only produced one multi-millionaire, but two! Both winners will walk away with significant amounts of money that will undoubtedly change their lives,' says ITHUBA CEO, Charmaine Mabuza. 'The winner service team is eagerly awaiting the arrival of these winners and ready to help and support them every step of the way,' Mabuza added. To help winner's enjoy lasting benefits from their winnings, ITHUBA offers access to certified financial experts who provide valuable financial insights for winners of R50 000 and above. All winners have 365 days from the draw date to claim their winnings, and all National Lottery winnings are tax-free . Participants can check their tickets at retail stores or online through the National Lottery website or social media pages as there are more winners in other divisions. Players must be 18 years or older. Play responsibly. Let us know by leaving a comment below, or send a WhatsApp to 060 011 021 1 Subscribe to The South African website's newsletters and follow us on WhatsApp, Facebook, X and Bluesky for the latest news.
