/ 28 September 2007

Losing lottery bidder mulls renewed court action

Losing National Lottery bidder Igwija Gaming on Friday indicated that it might launch renewed court action questioning the awarding of the licence to incumbent operator Gidani.

In a lengthy media statement, Igwija said it would request an urgent meeting with Trade and Industry Minister Mandisi Mpahlwa to ask him to give specific reasons why Gidani was awarded the licence, failing which the company would return to court.

”Whereas this announcement enables Igwija to now go back to the Pretoria High Court to conclude its hearing, Igwija has chosen to have a meeting with the minister as a first step, before going back to court to complete its legal case,” it said in a statement.

Its announcement comes on the same day that Gidani announced that the first National Lottery draw would take place on October 13, with tickets going on sale from Friday October 5.

Gidani was named as the new National Lottery operator by Mpahlwa last Friday.

Gidani was previously named as operator, but the awarding of the licence was challenged by the previous operator, Uthingo, in court.

The Pretoria High Court earlier this year ordered Mpahlwa to review all the bidders for operating the lottery, and while that process was ongoing the lottery was suspended.

The court specifically ordered Mpahlwa to see if the four bidding companies had any shareholders in political office, something prohibited by the Lotteries Act.

It was at the same time that Igwija approached the Pretoria High Court asking it to force the Lotteries Board to supply detailed information on other bidders.

The court postponed the application indefinitely pending the outcome of the process that Mpahlwa embarked upon after Uthingo’s success in court.

It was this application Igwija was now considering pursuing. It said the minister had failed to sufficiently explain why he decided to re-reward the licence to Gidani.

”We would have expected the minister to follow up his announcement with a letter stating the reasons that informed his decision,” Igwija said.

”Igwija accepts that the process was a competitive one and that there can be only one winner. In our attempt to exhaust all possible avenues to seek and get the reasons, we are at pains not to be seen as disgruntled losers but, if we are to lose, we must lose fairly,” the company said. — Sapa