EFF Alleges Political Interference in Awarding R180 Billion National Lottery Contract, SA Weighs In

• The Economic Freedom Fighters (EFF) has raised concerns about the process to appoint a new operator of the national lottery
• Gold Rush Consortium, owned by two businessmen with close ties to the African National Congress, are reportedly the preferred bidder
• South Africans agreed with the EFF as the ANC-linked individuals are favourites to be awarded the R180 billion contract

Briefly News journalist Byron Pillay has dedicated a decade to reporting on the South African political landscape, crime, and social issues. He spent 10 years working for the Northern Natal Courier before transitioning to online journalism.

GAUTENG – The Economic Freedom Fighters (EFF) has claimed that bidding process to appoint a new operator of the National Lottery has been marred by political interference.

The EFF has raised concerns after reports emerged that Gold Rush Consortium was selected as the preferred bidder to operate South Africa’s National Lottery.

Ithuba is the current operator, but its license expires on 31 May 2025. The contract to run the lotto for the next eight years is reportedly worth R180 billion.

Why the EFF is concerned about Gold Rush Consortium

Julius Malema’s party noted concern that the company reportedly favoured taking over the operation of the lotto, which is owned by KwaZulu-Natal businessmen Moses Tembe and Sandile Zungu.

Zungu, the owner of AmaZulu, previously contested the African National Congress (ANC) KZN Chairperson post. Tembe is also a known funder and ally of the party.

Furthermore, the EFF claimed that there were conflicts of interest during the bidding process. The party noted that two of the individuals on the National Lotteries Commission’s (NLC) bid evaluation committee had links to the Gold Rush Consortium as well.

One of the members has close personal and professional links to Gold Rush, while another is the sole director of a business that houses Gold Rush gaming machines. The EFF is now asking why Minister of Trade, Industry and Competition, Parks Tau, is proceeding with negotiations with the preferred bidder.

“The EFF firmly believes that the decision by Minister Tau to proceed with negotiations with a "preferred bidder" behind closed doors is also an assault on transparency,” the party said.

You can view the party’s concerns below.

A race to find a new operator

While the EFF are raising concerns about the process to find a new operator, the uMkhonto weSizwe (MK) Party is concerned about what happens to the national lottery from 1 June onwards.

As reported by Ground Up in February 2025, the current operating licence held by Ithuba expires on 31 May 2025, but the bidding adjudication period for a new operator only ends in May 2026. It is currently unclear what will happen after Ithuba’s licence expires, something the MK Party noted.

The political party led by Jacob Zuma took to social media to count down to day zero, when there will be no legal lottery in the country.

South Africans agree with EFF

The EFF’s concerns drew support from South Africans who also expressed frustration that ANC-linked individuals were set to benefit.

@FonyokaPondoka suggested:

“Take it to court if possible.”

@ndaba159 stated:

“If they go ahead with this, then people must take it to the streets. Including those board-member appointments.”

@djMdeva_Secunda added:

“Shortlisting already violates the said regulation. He doesn’t have to even go as far as that.”

@MahenMoodley said:

“Well done. This is the ANC cadres feeding at the trough again. This needs to be stopped and interdicted. The same merry-go-round of empowering certain individuals who will recycle cash to the party.”

@chiefcebo_ exclaimed:

“No one will ever win again except comrades.”

@motsohi_thabang stated:

“If you're not close enough to the ANC, you will not get major contracts. You should know that. This is how all black billionaires were created.”

Minister Ronald Lamola in middle of a lotto-related scandal

Briefly News reported in 2021 that the ANC's Ronald Lamola found himself in the middle of a scandal related to the National Lotteries Commission.

Lamola, who was Minister of Justice at the time, was the director of a law firm hired by the National Lotteries Commission to investigate fraud.

It was reported that Ndobela Lamola Inc. submitted three reports to the NLC that were filled with falsified documents.

Source: Briefly News