Tau to announce new operator for National Lottery

TRADE, Industry and Competition Minister Parks Tau will on Wednesday announce a new company to operate the National Lottery, after the Gauteng High Court, Johannesburg, rejected his attempt to extend Ithuba Holding's contract to May 31 next year under a temporary licence.

- BONGANI HANS [e-mail]

Tau wanted to extend Ithuba's contract despite that it was due to expire on May 31.

Delivering judgment on the case brought before him by one of the bidders, Wina Njalo Proprietary Limited, Judge Sulet Potterill said on May 21 that Tau was acting unconstitutionally and unlawfully in delaying choosing a new company to succeed Ithuba in the operation of the National Lottery.

Ithuba's contract started in June 2015. "The minister is ordered to determine a successful applicant for the fourth National Lottery Licence by no later than 28 May 2025.

"The minister must negotiate a licence agreement by no later than 28 May 2025," read the court order. Trade, Industry and Competition spokesperson Bongani Lukhele said eight companies were shortlisted for the contract, but declined to name them, saying the list "has not been officially released".

However, Judge Potterill suspended his order for five months to give a successful bidder enough time to prepare for the takeover.

This would require acquiring equipment and substantial infrastructure totalling hundreds of millions of rand.