Key Takeaways
- The EFF is calling for Deputy President Paul Mashatile to account under oath for his dealings with the consortium that was awarded the national lottery license, valued at over R80bn.
- The EFF is arguing that the current legislation surrounding the national lottery tender is flawed, as it only prohibits direct financial interests, allowing politicians’ family members to hold indirect interests.
- The party is seeking to redefine what constitutes a direct interest, citing the example of Mashatile’s sister-in-law, who is a director of the consortium that was awarded the license.
- The EFF is applying to be an intervening party in a legal challenge launched by losing bidders, and is arguing that the statutory framework is constitutionally inadequate.
- The case is set to be heard next year, and the EFF will argue that parliament has already recognized the risks of indirect interests and that the current legislation is flawed.
Introduction to the Controversy
The Economic Freedom Fighters (EFF) is seeking to hold Deputy President Paul Mashatile accountable for his dealings with the consortium that was awarded the lucrative national lottery license. The license, valued at over R80bn, was awarded to Sizekhaya, a consortium that has denied any allegations of cronyism or political patronage. However, the EFF has raised concerns about the fact that one of the directors of Sizekhaya is Mashatile’s sister-in-law, advocate Khumo Bogatsu. The party is arguing that this constitutes a conflict of interest, and that Mashatile may have acted in his personal capacity in the awarding of the contract.
The Flawed Legislation
The EFF is challenging the current legislation surrounding the national lottery tender, which only prohibits direct financial interests. The party is arguing that this allows politicians’ family members to hold indirect interests, which can lead to corruption and abuse of power. The EFF is citing the example of Mashatile’s sister-in-law, who is a director of Sizekhaya, as evidence of this flaw. The party is seeking to redefine what constitutes a direct interest, and is arguing that the current legislation is constitutionally inadequate. The EFF is also pointing out that parliament has already recognized the risks of indirect interests, and that the current legislation is flawed.
The Legal Challenge
The EFF has formally applied to be an intervening party in a legal challenge launched by some of the losing bidders. The challenge is seeking to set aside the contract that was awarded to Sizekhaya, and the EFF is arguing that the statutory framework is flawed. The party is also arguing that Mashatile may have acted in his personal capacity in the awarding of the contract, and that he should be held accountable for his actions. The case is set to be heard next year, and the EFF is confident that it will be able to demonstrate the flaws in the current legislation.
The Consortium’s Denials
Sizekhaya, the consortium that was awarded the national lottery license, has consistently denied any allegations of cronyism or political patronage. The company has stated that its success was solely due to the strength of its bid, and that it has satisfied all the requirements of the Lotteries Act. However, the EFF is arguing that the fact that one of the directors of Sizekhaya is Mashatile’s sister-in-law raises concerns about the awarding of the contract. The EFF is also pointing out that the minister of trade, industry, and competition, Parks Tau, has already said that he had ruled out the bid evaluation committee and bid adjudication committee’s preferred bidder, Ringeta, due to concerns about corruption.
The Minister’s Decision
Parks Tau, the minister of trade, industry, and competition, has already said that he had ruled out the bid evaluation committee and bid adjudication committee’s preferred bidder, Ringeta, due to concerns about corruption. Tau has stated that he awarded the contract to Sizekhaya because it presented a "well-balanced bid" and that it had satisfied all the requirements of the Lotteries Act. However, the EFF is arguing that this decision is flawed, and that the minister should have taken into account the fact that one of the directors of Sizekhaya is Mashatile’s sister-in-law. The EFF is also pointing out that the minister’s decision has raised concerns about the integrity of the procurement process, and that it is essential to ensure that the process is transparent and fair.
Conclusion
The controversy surrounding the awarding of the national lottery license has raised concerns about the integrity of the procurement process and the potential for corruption and abuse of power. The EFF is seeking to hold Deputy President Paul Mashatile accountable for his dealings with the consortium that was awarded the license, and is arguing that the current legislation surrounding the national lottery tender is flawed. The case is set to be heard next year, and the EFF is confident that it will be able to demonstrate the flaws in the current legislation. The outcome of the case will have significant implications for the integrity of the procurement process and the potential for corruption and abuse of power in South Africa.