A consortium led by KwaZulu-Natal businesspeople Moses Tembe and Sandile Zungu has emerged as the preferred bidder to win the lucrative eight-year licence to operate SA’s national lottery.
Business Day understands that trade, industry & competition minister Parks Tau has opened negotiations with the Goldrush Consortium after a protracted bidding battle, marred by the participation of politically exposed people.
The Goldrush Group is an independent alternative gaming group, whose activities span electronic bingo terminals, limited payout machines, retail sports betting shops and online betting.
Tau did not respond to direct questions on whether he had picked a preferred bidder.
“The minister is currently engaged in consultations with the National Lotteries Commission [NLC] to finalise the appointment of the preferred licence holder,” his spokesperson, Yamkela Fanisi, said.
“This process is being undertaken with the necessary diligence to ensure transparency, compliance, and alignment with the legislative and policy framework. It is anticipated that the announcement of the preferred licence holder will be concluded before the end of this month.”
Goldrush did not respond to a request to comment. However, in a regulatory filing, the group said it was engaged in discussions over a big transaction.
“Preference shareholders are advised that the group has entered into negotiations regarding a potential expansion of the group’s business activities which, if successfully concluded, may have a material effect on the price of the company’s securities,” the company said.
Tau had already told all bidders that he preferred negotiating with his preferred bidder and conclude these discussions before announcing them.
Eight bidders — including incumbent Ithuba, Wina Njalo, Umbulelo Consortium, led by Afrirent Holdings, and Giya Games — were vying for the tender, said to be north of R80bn.
The imminent appointment of Goldrush comes after Wina Njalo, an offshoot of JSE-listed Hosken Consolidated Investments (HCI), dragged Tau to court to compel him to announce a bidder before end-May.
Wina Njalo also wants the request for proposal for a temporary licence issued by Tau to be declared invalid. Tau issued the 12-month temporary licence in March, when it became apparent that he had run out of time to issue a permanent licence.
Ithuba’s licence expires at end-May, and a new operator would need at least six months to set up systems to efficiently run a nationwide lottery.
The judgment on Wina Njalo’s urgent application was reserved and is expected in the next few days.
Tau, who took office when the process was at an advanced stage in December, delayed appointing a preferred bidder after raising concerns about the evaluation process. He said he needed to ensure no “political party or political office-bearer has any direct financial interest in the applicant or a shareholder of the applicant”.
Business Day has revealed how politically connected entities are in the running to win the lucrative tender. One is the Ringeta Consortium, led by Thebe Investments and Absa chair Sello Moloko’s investment company, Thesele Group.
Thebe Investments is half-owned by ANC benefactor Batho Batho Trust, which, according to declarations made to the Electoral Commission of SA, has donated R60m to the ANC since 2021. Batho Batho Trust was founded by ANC leaders in 1992.
HCI is majority-owned by the SA Clothing and Textile Workers’ Union (Sactwu), an affiliate of ANC ally Cosatu. HCI is run by trade unionist-turned-businessperson Johnny Copelyn, who donated to President Cyril Ramaphosa’s CR17 campaign for the ANC presidency. Former trade, industry & competition minister Ebrahim Patel is a former Sactwu secretary-general.
Patel presided over much of the tender process until he left office a year ago. HCI subsidiary Vukani Gaming is already a big player in the casino space.
The Goldrush bid has not been without controversy either.
City Press reported in 2024 that Thiran Marimuthu, who sits on the NLC’s licence bid evaluation committee, has close links with the Goldrush Consortium and attended the 25th anniversary organised by it in November 2024.
Another bid evaluation member, Anne-Marie Pooley, in 2024 invested in an establishment in Pretoria, Route 515 Pub and Grill, which houses Goldrush slot and gaming machines.
A government notice states: “Route 515 Pub and Grill … intends on submitting an application to the Gauteng Gambling Board for the change of financial interest application to include Anne-Marie Pooley.”
Company records show Pooley became the sole director of the entity in March.
Zungu challenged the ANC KwaZulu-Natal chair position in 2022 before dropping out after he failed to garner enough support.
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