Deputy President Paul Mashatile
By Karabo Marifi
Deputy President Paul Mashatile has dismissed suggestions of political interference in the awarding of the lucrative national lottery licence to Sizekhaya Holdings, a company linked to his sister-in-law, Khumo Bogatsu, and close associate Moses Tembe. The licence, handed to Sizekhaya on May 28, 2025, after lengthy delays, allows the company to run South Africa’s national lottery for eight years. However, the involvement of Bogatsu – twin sister to Mashatile’s wife, Humile – and Tembe, who chairs Sizekhaya, has sparked widespread concerns about possible political influence in the decision.
A Long and Complex Bidding Process
The journey to award the fourth national lottery licence began in August 2023, with eight companies vying for the contract. Minister of Trade, Industry and Competition, Parks Tau, called it a “massive operation” that was “technically and legally complex.” The National Lotteries Commission (NLC), which reports to Tau, played a key role in evaluating the bids. After what Tau described as “this arduous exercise,” Sizekhaya emerged as the winner, but not without controversy. Some losing bidders have hinted at legal challenges, pointing to a lack of transparency. This echoes the second and third lottery licences, which also faced courtroom battles.
A Lucrative Prize
The national lottery licence is often dubbed “a licence to print money.” The outgoing operator, Ithuba Holdings, posted a massive R7.28-billion turnover in 2024. Sizekhaya is expected to rake in similar profits over its eight-year term. Public records show the Goldrush Group as Sizekhaya’s biggest shareholder, holding 50%. This stake will drop to 40% when a government entity takes a share, as required by the licensing terms. Goldrush is 59.4% owned by JSE-listed Goldrush Holdings, with investors like Mauritian-based Astoria Investments and South Africans Jan van Niekerk and Piet Viljoen on board.
Ties That Raise Eyebrows
Among Sizekhaya’s shareholders is Bellamont Gaming, a company co-owned by Khumo Bogatsu and Moses Tembe. Bogatsu is the twin sister of Humile Mashatile, whom the Deputy President married in a lavish ceremony in March 2023, attended by political and business heavyweights. Tembe, a well-known KwaZulu-Natal businessman, chairs Sizekhaya and is said to be a close friend of Mashatile. Reports suggest Mashatile has often visited Tembe’s home in uMdloti. Bellamont Gaming was set up in December 2023, just nine months before the bidding deadline, and Sizekhaya was registered days before the February 3, 2024, cut-off. Sizekhaya insists Bellamont is a “minority shareholder” and “a legally compliant gaming entity,” but the timing and connections have fuelled speculation.
Mashatile and Tau Respond
Deputy President Mashatile has denied any role in the decision, admitting Tembe is his friend but claiming he didn’t know about his business ties with Bogatsu. He stressed that only Minister Tau had the power to pick the winner. Tau, speaking to Parliament’s Portfolio Committee on Trade, Industry and Competition, promised to investigate the conflict-of-interest claims. He noted that when he took office in July 2024, the third licence had already been extended for two years. Tau assured MPs that the process followed the Lotteries Act, which bans political affiliations and public-office bearers from running the lottery.
NLC Clears the Air
NLC Commissioner Jodi Scholtz shed light on the process, which wrapped up with the May 28 announcement. She confirmed that the NLC probed Tembe and Sandile Zungu, another Sizekhaya member with links to the ANC and MK party. After legal advice, the NLC found neither was a political office-bearer, and no “direct financial interest” tied to political parties was uncovered. Scholtz stressed that the bidding adhered to the Lotteries Act’s strict rules, designed to keep the lottery free of political influence.
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