The High Court in Pretoria has set aside the decision of Parks Tau, minister of trade, industry and competition, to award the fourth National Lottery and Sports Pool licence to Sizekhaya Holdings.
Judge Norman Davis found on Monday that the licence awarding process was procedurally irregular. According to the court, a ministerial committee appointed by Tau followed an additional evaluation process that was not part of the original tender process. The committee re-evaluated the submissions and made different recommendations than those of the original evaluation and assessment committees. Consequently, the court set aside the licence award and declared the licence agreement between the minister, the National Lottery Commission (NLC) and Sizekhaya invalid. Tau must now reconsider the award without relying on the ministerial committee's report and recommendations.
The ruling does not, however, mean that the Lotto comes to an immediate standstill. The court suspended the operation of its order for two consecutive periods of six months to ensure that the lottery can continue without interruption. During the first six months, the minister has an opportunity to make a new decision on the licence award. If Sizekhaya is not appointed as the licence holder again, the further six months will provide time for negotiations, a new licence agreement and transition arrangements. In the meantime, Sizekhaya may continue with ticket sales, draws and the payment of prizes.
The ruling follows legal action by Ithuba Lottery and Ringeta Consortium, which disputed the licence award. Ithuba, which operated the previous National Lottery, welcomed the ruling and said it confirms the importance of a fair, transparent and accountable licence process. The court also dismissed a separate application by the EFF.
Sources: Goldrush Holdings, Moneyweb, eNCA
This article is an automatic English translation of a Nuusflits article originally published in Afrikaans. Read the Afrikaans original.
