JSE-listed Goldrush Group, which is part of the consortium that has been awarded the licence to operate the fourth national lottery, has defended the inclusion of deputy president Paul Mashatile’s sister-in-law in the consortium.
Goldrush, which owns about half of Sizekhaya Holdings, said it was comfortable with the minority stake held by Khumo Bogatsu, twin sister to Mashatile’s wife, in the consortium, saying her participation was vetted.
“Her shareholding in Bellamont was specifically investigated since she is the sister-in-law of the deputy president of SA. There were no legal impediments found at the time that would preclude her participation in the consortium,” the company said on Wednesday.
Goldrush is an independent alternative gaming group, whose activities span electronic bingo terminals, limited payout machines, retail sports betting shops and online betting.
Sizekhaya, which pipped seven other bidders to the lucrative contract, is chaired by erstwhile Phumelela Gaming chair Moses Tembe.
Tembe, alongside Bogatsu, owns a minority stake in Sizekhaya.
Goldrush also sought to clarify allegations that it had proximity to the bid evaluation members Thiran Marimuthu and Anne-Marie Pooley.
“Thiran attended the 25-year anniversary event of Goldrush at the invitation of Goldrush as did shareholders, suppliers and regulators in the gaming industry (past and present). Thiran was invited based on this past working relationship with Goldrush,” it said, adding that the evaluation committee was only appointed in February 2024.
“Another member of the evaluation committee, Pooley, acquired an establishment in Gauteng during February 2024, which already housed limited payout machines (LPMs) supplied by the Goldrush LPM division,” it said.
“There are only three owners of LPM operators’ licences in Gauteng, being Goldrush, Grand Slots, (ultimately owned by JSE-listed Sun International) and Vslots (owned by JSE-listed Hosken Consolidated Investments). Anybody that acquires an existing establishment in Gauteng with LPMs will have a high probability of having Goldrush LPMs on the premises.”
Business Day reported on Tuesday that Marimuthu is likely to have attended Goldrush’s 25th anniversary golf day in early November 2023 in his personal capacity, as he was suspended by his then employer, Gauteng Gambling Board (GGB), at the time.
“Authority or permission was not granted for Mr Marimuthu to represent the GGB as the acting CEO at the Goldrush event while on suspension,” the GGB told Business Day.
Adding to the perceived conflict of interest and ties to Goldrush is that the GGB said its acting CEO at the time, Karabo Mbele, was not invited to the event.
In essence, Goldrush opted to invite a suspended acting CEO, ignoring the one occupying the office at the time of the event.
The National Lotteries Commission (NLC) also appointed Marimuthu to the bid evaluation committee despite his GGB suspension.
Business Day reported last week that the chair of the bid evaluation committee, Andrew Mashifane, an accountant in 2023, admitted guilt to misconduct charges after the Independent Regulatory Board for Auditors launched a probe into his conduct.
Despite this finding, the NLC still saw fit to appoint him to chair the panel.
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