As the expiry date for Uthingo’s licence as the national lottery operator looms, the two losing bidders continue to put pressure on Trade and Industry Minister Mandisi Mpahlwa to throw the Gidani consortium out of the race.
By late Thursday Mpahlwa had still not decided on the new operator, raising fears that the country might soon find itself without a functioning national lottery. Uthingo’s licence was due to expire at midnight on Saturday.
Last month, the Pretoria High Court set aside Mpahlwa’s decision to award the licence to Gidani after Uthingo complained that due process had not been followed. The decision has been marred by controversy amid revelations that high-profile individuals with ANC connections held shares in Gidani. Key participants include ANC national committee members Cyril Ramaphosa and Max Sisulu and Chris Nissen, the former leader of the ANC in the Western Cape.
It has also emerged that Education Minister Naledi Pandor once held shares in Uthingo, but has since sold them. The National Lottery Act prohibits awarding the lucrative licence if it is found that a political party or political office bearer has any interest in the bidding consortium. Mpahlwa has since requested that the four original bidders submit detailed shareholder information.
The main cause of the delay in announcing the winning bidder is that the minister is waiting for the result of legal challenges by Uthingo and Igwija, another losing bidder.
On Wednesday Igwija took the minister and the National Lottery Board to court, demanding relevant documentation showing how it had reached its decision to award the licence to Gidani. The case was postponed until May 7.
Igwija chief executive Muzi Makhaya told the Mail & Guardian this week that the consortium would interdict any decision that is not in its favour. ‘Now that the case is before the court, our interdict will be legitimate,†he said.
Meanwhile, Uthingo has challenged Mpahlwa on comments he made after the Pretoria High Court judgement in which he claimed to be mindful of the looming license expiry date but was confident that with the cooperation of all the bidders, the changeover would be completed on time without disruption to the National Lottery.
Uthingo chairperson Barney Pityana asked in a recent statement ‘What changeover is the Minister talking about when the Pretoria High Court asked him to set aside the decision to award the licence to Gidani?
‘Irrespective of the Minister’s public posturing about all the homework that was done in evaluating the bids, the fact of the matter is that the court set aside the minister’s decision.â€
Uthingo is of the view that the minister’s statement implied he will not apply his mind to the matter when he reviews the applications.
This week Uthingo’s attorney, Neil Kirby, said he expects the minister to extend Uthingo’s contract until the review process is completed.
Gidani spokesperson Thembi Thulwana said: ‘We have not had anything from the minister. We are still waiting.â€
Gidani has already spent more than R500-million in anticipation of taking over the running of the lottery.