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New lottery operator Sizekhaya has denied allegations that the participation of Deputy President Paul Mashatile’s sister-in-law in the consortium amounted to an indirect benefit by the country’s second citizen.
The decision last week by the government to give Sizekhaya the lucrative multibillion-rand contract to operate the national lottery came under fierce attack by the EFF and losing bidders Ithuba and Ringeta.
The EFF and Ithuba argued that trade, industry & competition minister Parks Tau erred in ignoring Mashatile’s proximity to Sizekhaya.
Ringeta was chosen as the initial preferred bidder by the evaluation committee, a decision that was tossed out after the committee appointed by Tau to evaluate the bid evaluation committee’s decision found the entity had links to the ANC and was thus disqualified from being awarded the contract.
The committee then recommended Sizekhaya, with Ithuba the reserve bidder.
The EFF, in its court documents, said parliament singled out political parties and political office-bearers as a prohibited class because political financial interests in a lottery licensee threaten public confidence.
The EFF challenge is effectively an attempt to redefine what constitutes direct interest, with the party arguing the grey area in the wording of the national lottery tender opens the door for politicians to abuse the process through family members.
One of the arguments the EFF put forward is that parliament in 2013 recognised that indirect interests pose equivalent corruption risks.
“The bar exists to ensure that licensing is not turned into a channel for party funding, patronage, family enrichment, or corrupt influence,” the EFF said.
“Crucially, it also exists to ensure that powerful politicians, not least the state deputy president, do not directly or covertly exert their political influence to distribute patronage for self-enrichment or for those they may seek to enrich, as the case could well be with the Sizekhaya case study we put forth.
“It must be clearly understood that the EFF’s concern is not limited to evidenced and objectively verifiable influence the deputy president may play or have played in the awarding of the impugned tender. It cuts deeper and is more nuanced.”
Sizekhaya hit back at the position adopted by Ithuba and the EFF.
“Ithuba Lottery’s suggestion that the minister did not consider the presence or possibility of indirect financial interests on the part of political parties or office bearers is not plausible on the facts, particularly since it is undeniable that he did do so in the case of Ringeta and no reason is suggested why he would not have done so in the case of Sizekhaya,” it said.
“Ithuba Lottery distanced itself from relying on the allegations of ‘links’ in the media articles but initially sought to use the fact that the minister had asked for the allegations to be investigated as a ground of review.
“Sizekhaya’s evidence that Messrs [Moses] Tembe and [Sandile] Zungu are not politicians or political office bearers and the deputy president does not have any financial interest (direct or indirect) in Sizekhaya is not disputed by any party.”
Business Day
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