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).

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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.