Minister to reveal new South Africa's lottery operator by 28 May
A court directed Minister Parks Tau, in charge of Trade, Industry, and Competition, to declare South Africa’s new National Lottery operator no later than 28 May 2025. This ruling brings an end to the extended uncertainty following a legal dispute initiated by a losing bidder. The court also dismissed the ministers idea of using a temporary licence to cover the time between operators.
Wina Njalos court fight
Wina Njalo, a group that had competed to secure the eight-year lottery licence, started the case. Minister Tau, anticipating the end of Ithuba Holdings current contract on 31 May, proposed giving a one-year temporary licence to ensure things kept running. Wina Njalo objected, claiming this temporary plan favoured the incumbent because Ithuba had the systems in place to operate the lottery. The court sided with Wina Njalo, ruling that the proposal would award the licence to Ithuba by default.
Promoting fairness and clarity
Judge Sulet Potterill, while issuing her decision, emphasised the importance of keeping tender processes fair and not predictable. The result of a tender cannot be certain or expected, she stated. She explained that this rule is key to making sure that fairness, openness, and procurement laws are followed. The court ruled against the ministers delay, calling it invalid, and underlined the constitutional need to give state contracts based on merit, not ease.
Minister’s justifications found lacking
Minister Tau explained the delay in submitting court documents, blaming the extremely complex nature of the licensing process. He also highlighted previous corruption cases within the National Lotteries Commission to justify the cautious approach. Judge Potterill, however, called his explanation insufficient. In her ruling, she criticised the lack of concrete reasons, stating, He has not provided reasons. The ministers reliance on vague concerns failed to meet the legal standard to defend the extended hold on issuing the licence.
Examining the plan for a temporary licence
The court looked into the specifics of the temporary license plan. Records showed that , which shares seven directors with Ithuba Holdings, planned to take over the current operators technology and assets for one year. The judge recognised that stopping the lottery could harm funding meant to help charities. However, she decided that following correct legal procedures mattered more. She declared the temporary license invalid, but allowed five months before enforcing that decision, so the lottery could continue running. I dont believe a 12-month extension is needed, she said, reducing the proposed term to five months.
Economic and political consequences
The decision creates direct financial consequences. The court directed Minister Tau, the , and Ithuba Lottery to pay Wina Njalos legal expenses. Along with these costs, the judgment adds political pressure on the ministers office to act. It also warns potential bidders that courts will examine attempts to manipulate outcomes using temporary fixes.
The importance of funding charities
South Africas National Lottery provides substantial money to health programmes, education projects, sports initiatives, and the arts. Even a brief pause in the lottery could deprive communities in need of vital funds. That issue influenced the courts choice to grant a temporary licence. The court allowed the licence for a shorter time while rejecting the suggested plan. As the eight-year licence ends this month, industry experts caution that further delay could leave organisations that depend on this funding without the help they rely on.
Effects on buying policies
This case highlights broader issues in how states procure goods and services. The court stressed the importance of setting firm deadlines and having rules that are easy to understand. It made it clear that government offices must follow procurement laws. It also demonstrates that courts can step in to fix issues when officials go too far. In the future, everyone tied to big contracts will remember that rushing things should not come at the cost of being fair.
Whats ahead on 28 May
As the courts deadline gets closer, Minister Tau must make a key decision. The minister can either complete the review of bids and announce the new operator or file an appeal, which may stretch the timeline even further. If the minister moves forward, the announcement expected on 28 May 2025 will provide much-needed certainty to the industry and enable the selected group to get ready for the transition. Handing over will play a significant role in maintaining public trust and securing ongoing backing for programmes supported by lottery funds.
The courts order to announce the new National Lottery operator by 28 May 2025 ends a tough period full of legal battles and delays in decision-making. The decision cancels the one-year temporary license and calls for more transparent processes, emphasising that public contracts should follow fair competition. With the deadline approaching, the governments actions will shape both the future of the lottery industry and how procurement practices are trusted in South Africa.
