Lotto operator: Ithuba must be beyond reproach and apolitical

23 October 2014

The Democratic Alliance notes the announcement today that a company called Ithuba Holdings Pty Ltd is the preferred bidder to operate the National Lotto. We will conduct our own due diligence investigation to ensure that Ithuba is capable of running the lotto, that it is above reproach, and that its directors have no connection to any political party or organisation. 

If successful, Ithuba will win a license worth billions of rand in revenue. Over the term of the outgoing operator, the lotto reportedly generated revenues of more than R6 billion per year. Given the scandals that have surrounded the lotto over the last decade, the new operator must be appointed transparently and with a comprehensive due diligence investigation. 

There is very little information available about Ithuba online - it does not have a website, and when the DA called the only phone number available, we reached the Nelspruit Sheriffs' office. These initial indications raise doubts about whether Ithuba Holdings is able to run an operation of the scale and complexity of the national lottery. 

The National Lottery Act as amended in 2013 requires that "no political party in the Republic or political office-bearer has any direct financial interest in the applicant or a shareholder of the applicant". 

The DA will ensure that this provision is strictly adhered to, and that lotto funds are not allowed to be abused as they have been in the past. 

Statement issued by Geordin Hill-Lewis MP, DA Shadow Minister for Trade and Industry, October 23 2014

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