Tuesday, 13 May 2025

The Economic Freedom Fighters (EFF) expresses concern regarding the emerging reports that the Gold Rush Consortium, led by KwaZulu-Natal businessmen Moses Tembe and Sandile Zungu, has been selected as the preferred bidder to operate South Africa’s National Lottery for the next eight years in a contract worth R180 billion. This development follows a bidding process that has been tainted by political interference, conflicts of interest, and blatant disregard for ethical governance.

The involvement of individuals with direct financial and social ties to the Gold Rush Consortium in the very body tasked with evaluating bids is a serious breach of public trust. It has been reported that Thiran Marimuthu, a member of the National Lotteries Commission (NLC) bid evaluation committee, has close personal and professional links to Gold Rush. Furthermore, another committee member, Anne-Marie Pooley, is currently the sole director of Route 515 Pub and Grill in Pretoria, a venue that houses Gold Rush gaming machines. These connections not only compromise the independence of the evaluation process but expose the entire procurement to the risk of collusion and manipulation.

The EFF firmly believes that the decision by Minister of Trade, Industry and Competition, Parks Tau, to proceed with negotiations with a “preferred bidder” behind closed doors is also an assault on transparency. The Minister’s refusal to answer direct questions regarding the appointment, while simultaneously engaging in private consultations with the NLC, raises serious concerns about the legitimacy and lawfulness of the process. That the Gold Rush Consortium, already under public scrutiny for its links to evaluation committee members, would be advanced as the frontrunner in such a sensitive national contract, is indicative of a broader culture of patronage and elite enrichment that continues to plague the ANC-led government.

This politically motivated appointment will have disastrous consequences for the functionality of the National Lottery. The licence currently held by Ithuba expires at the end of May 2025. Whichever operator takes over will now require at least six months to build the necessary infrastructure to run a secure, credible, and efficient nationwide lottery. This includes establishing complex technological systems, securing retail and digital platforms, and ensuring compliance with regulatory standards. More importantly, delays in this transition will halt the essential work of the National Lottery in funding charitable organisations, supporting youth development, advancing educational initiatives, and sustaining community upliftment programmes that are critical to the social fabric of our country.

By prioritising politically connected businessmen over ethical and transparent administration, this process undermines the developmental role of the Lottery and jeopardises the livelihoods of thousands who depend on its resources. It confirms what the EFF has long warned against — that state institutions continue to be repurposed for the financial benefit of ANC-linked elites and their proxies, often under the guise of procedural diligence.

We demand that Minister Parks Tau account to Parliament and the people of South Africa for the compromised manner in which this licence is being awarded. We will not stand by while a crucial national institution is hijacked through collusion, conflict of interest, and political favouritism. The National Lottery must serve the people — not the pockets of the politically connected.

ISSUED BY ECONOMIC FREEDOM FIGHTERS

Sinawo Thambo (National Spokesperson) 072 629 7422

Thembi Msane (National Spokesperson) 061 467 8169

Andiswa Madikazi (Parliament Media Liason) 069 516 4924

Thato Lebyane (Media Inquiries) 078 563 1581