/ 10 May 2007

Lotto debacle in court again

The national lottery licence is again the subject of court action as losing bidder Igwija Gaming seeks to obtain detailed information from the Lotteries Board about its decision-making process.

Pretoria High Court Judge Willie Seriti on March 5 set aside the awarding of the licence to newcomer Gidani following an application by lottery operator Uthingo.

Uthingo cited the involvement of African National Congress national executive committee members as shareholders of Gidani among its reasons, but it was Education Minister Naledi Pandor’s shares in Black Management Forum Investment (a 10% shareholder in Uthingo) that partly resulted in the awarding of the licence being set aside.

The lottery has been suspended since the end of March, when Uthingo’s licence expired, but Trade and Industry Minister Mandisi Mpahlwa has not yet set a date when the licence will be awarded again, saying the Lotteries Board needs more time to investigate.

Uthingo and the Lotteries Board on Monday described Igwija’s court application under the Promotion of Access to Information Act as academic and premature, but Igwija insisted it needs the information to protect its rights in case it wants to bring legal challenge in future.

Igwija’s advocate, Clive Cohen, argued that if the minister allows changes to the composition of the shareholders and directors of Gidani and Uthingo and then awards the licence to either of them, there will be a legal challenge. He said the minister is not entitled to have regard to such changes.

Gidani opposed the application, saying Igwija can only apply for information once the minister has made his decision.

Igwija wants information regarding the reasons for the Lotteries Board’s former recommendation of Gidani and requested documents, correspondence and information that led to the now-aborted awarding of the licence.

Judge Francis Legodi will deliver judgement in the application on May 14. — Sapa