EFF threatens legal action over awarding of lottery contract to Sizekhaya Holdings

JOHANNESBURG - The Economic Freedom Fighters (EFF) is threatening legal action over the awarding of the multi-billion rand lottery contract to what it called politically connected Sizekhaya Holdings. 

EFF leader, Julius Malema, has written to President Cyril Ramaphosa asking whether he had interrogated some of the controversies around the tender.

The Department of Trade, Industry and Competition recently announced Sizekhaya as the fourth lottery licence holder on an eight-year contract worth about R200 billion.

ALSO READ:

• Incoming lottery operator Sizekhaya Holdings commits to giving IP to govt once licence expires

• Some opposition parties want Minister Tau to publicly disclose details of Sizekhaya Holdings, National Lottery contract

• Newly-awarded national lottery licence operator Sizekhaya Holdings' ties to ANC questioned

• KZN businessman Tembe denies claims of 'cronyism' after Sizekhaya secures lottery licence

Investigative journalism website, amaBhungane, revealed that one of the co-owners of Bellamont Gaming was the twin sister of Deputy President Paul Mashatile's wife. 

Bellamont owns a stake in Sizekhaya and is chaired by KwaZulu-Natal businessman, Moses Tembe, who was at the forefront of the consortium’s lottery bid. 

Both Mashatile and Tembe have denied that Sizekhaya received the multi-billion rand contract through political connections. 

However, Malema said that more investigations were needed to clear up all the speculation. 

Malema said that Trade, Industry and Competition Minister Parks Tau has evaded parliamentary oversite over this issue.

Malema said the EFF reserved its right to approach the court with the view of having the contract set-aside for breach of governance principles.

The Presidency said that Minister Tau has undertaken to investigate the matter. 

The president will await the conclusion of the minister's probe before offering any further comment.