EFF leader Julius Malema has written a letter to President Cyril Ramaphosa, asking if he has spoken to Deputy President Paul Mashatile regarding the involvement of his “immediate family” in the awarding of the multi-billion-rand National Lotteries Commission state contract.
In a letter dated July 3, and addressed to Ramaphosa, Malema asked Ramaphosa four questions regarding the awarding of the fourth national lottery licence to Sizekhaya Holdings by the Department of Trade, Industry and Competition.
“I write to you in my capacity as president of the Economic Freedom Fighters (EFF) and as party leader in Parliament to express our grave concerns regarding the awarding of the Fourth National Lottery Licence to Sizekhaya Holdings and the growing body of evidence indicating deep-rooted political interference and conflicts of interest involving senior members of your government, most notably Deputy President Paul Mashatile.
Eight-year National Lottery Licence
“As you are aware, the Department of Trade, Industry, and Competition, under Minister Parks Tau, recently awarded the eight-year National Lottery License—a contract worth approximately R7-billion annually—to Sizekhaya Holdings, a company in which the Goldrush Consortium is a principal shareholder. This decision was made despite multiple formal objections raised by the EFF, both to Minister Tau and to the Portfolio Committee on Trade and Industry in Parliament,” said Malema.
Malema said the EFF cautioned against this appointment due to documented conflicts of interest between National Lotteries Commission (NLC) bid committee members and Goldrush.
“The political exposure of key Goldrush stakeholders, including Mr Sandile Zungu, who ran for political office in KwaZulu-Natal under the ANC, and Mr Moses Tembe, who maintains close ties to the ANC—contravening Section 13(2)(b)(iv) of the National Lotteries Act; and Sizekhaya’s lack of full operational capacity to run the lottery effectively—in direct contravention of Section 13(2)(b)(i) of the National Lotteries Act,” said Malema, giving more reasons why the EFF opposed the appointment.
Minister ignored parliamentary oversight
“Despite this, Minister Tau ignored parliamentary oversight and resisted appearing before the Committee prior to awarding the Fourth National Lottery Licence.
“This, after the EFF formally requested that he be summoned. We also requested written responses from the minister seeking clarity on the selection process for Sizekhaya and whether he was aware of the conflicts of interest surrounding this appointment. The minister nevertheless awarded the tender to Sizekhaya Holdings.
“The minister has since appeared before the Portfolio Committee on Trade, Industry and Competition on 24 June 2025 and revealed an alarming lack of knowledge regarding these serious allegations.
“He was evasive in response to direct questions from Members of Parliament. He exhibited a lack of appreciation for the glaring conflicts of interest. And he demonstrated ignorance of the role of Deputy President Paul Mashatile and those associated with him in the awarding of this tender,” said Malema.
“Furthermore, the minister committed to conducting further investigations into the emerging concerns regarding this contract, particularly as they relate to the Deputy President of South Africa.
“His concession that further investigations are necessary underscores the principle that he ought to have availed himself of parliamentary accountability before awarding the contract to Sizekhaya Holdings. To now seek to conduct investigations in retrospect reflects irresponsibility and recklessness on his part, which may jeopardise the integrity of the National Lottery,” said Malema.
Deputy president’s relatives
“The involvement of the Deputy President adds a troubling dimension to this matter. It has come to light that Khumo Bogatsu—a co-owner of Bellamont Gaming, which is also a shareholder in Sizekhaya Holdings—is the twin sister of South Africa’s Second Lady, Humile Mashatile, the wife of Deputy President Paul Mashatile.
“Furthermore, Ms Bogatsu is engaged to businessman Sbu Shabalala, who is a cousin of Moses Tembe, the lead figure in Sizekhaya and co-owner of the Goldrush Consortium.
“These facts reveal an intricate web of familial and political connections that strongly suggest that the awarding of the National Lottery Licence may have been influenced by improper political considerations—constituting a textbook case of state capture,” said Malema.
“Given the severity of these allegations and in light of your public commitment to state
renewal and ethical leadership, we put forward the following questions:
List of questions to president
“1. Are you aware of the extent of political ties involved in the appointment of
Sizekhaya Holdings as the National Lottery operator?
“2. If you are aware, do you support the decision made by Minister Tau despite serious procedural irregularities, conflicts of interest, and the defiance of parliamentary oversight?
“3. Have you personally engaged Deputy President Mashatile on this matter? And if so, what explanation has he provided regarding the involvement of his immediate family in a multi-billion-rand public contract?
“4. In light of the State Capture Commission and your stated anti-corruption stance,
what is your position on politically exposed persons and their close relatives
benefiting from government contracts or public licences such as this one?
EFF considering legal action
“In addition to our formal request for answers, the EFF reserves its rights to pursue appropriate legal remedies, including approaching the courts to compel disclosure of the appointment process and, where necessary, to have these appointments reviewed and set aside on grounds of irrationality, procedural irregularity, or breach of public governance principles.
“We, therefore, request a formal response to these questions and urge you to act in defence of transparency and ethical governance,” said Malema.
