Understanding the South African National Lottery Licence

Ithuba Holdings has addressed the misunderstandings that have emerged regarding the ongoing South African National Lottery Licence process.

As the Parliamentary Portfolio Committee on Trade, Industry and Competition prepares to oversee the awarding of the Fourth Licence, Ithuba aims to clarify critical aspects of the matter to enhance public understanding and confidence in the process.

"Central to Ithuba's message are four primary points of clarification, addressing what they deem as misconceptions that could undermine trust in the lottery system," said Ithuba CEO, Charmaine Mabuza.

• Eligibility to apply for the Fourth Licence: While it is commonly believed that Ithuba Holdings could not legally bid for the Fourth Licence, Ithuba Lottery, a separate entity even though it shares directors with Ithuba Holdings, was entirely eligible to apply. The company insists that no irregularities are present in this regard.
• Award of a Temporary Licence: The Minister of Trade, Industry and Competition has stated that the Temporary Licence was awarded to ensure uninterrupted lottery operations and continued funding for charitable initiatives during a transitional period. This decision was made based on statutory powers, advice from the National Lotteries Commission (NLC), and court rulings that emphasized the importance of public interest in maintaining these operations.
• Allegations of favouritism: Any claims suggesting favoritism towards Ithuba during the Temporary Licence issuance have been dismissed by the Minister. He articulated that the conditions tied to the Temporary Licence were deemed "unavoidable and natural" within the specialised context of the lottery industry.
• Necessary discussions with the Minister: Communication between Ithuba Holdings and the Minister was vital for devising solutions that would keep the lottery operational. These discussions led to the creation of a mutually agreed compromise, ensuring ticket sales could continue.

This clarifying communication comes at a time when misinformation regarding the lottery processes could severely disrupt public confidence.

Ithuba's concerns revolve around the potential repercussions that a decline in public trust might pose, particularly for funding dedicated to disadvantaged communities through good causes supported by National Lotteries Commission's disbursements.

In light of these challenges, Ithuba Holdings makes it clear that their submission is not an attempt to stifle public scrutiny; rather, it is a call for fact-based, transparent discourse. The company highlights the vital nature of the lottery in uplifting communities through funding for charities, sports, infrastructure, and cultural initiatives.

FAST COMPANY