The Department of Home Affairs has rapidly terminated a controversial Wi-Fi deal that would have seen some of its offices across South Africa transformed into advertising billboards for sports betting company Betway.
The hasty move this week follows pointed media questions and parliamentary enquiries, prompting the department to urgently review the arrangement after it came to light that Betway would be providing ad funding assistance for the so-called “free Wi-Fi pilot programme”.
The Wi-Fi initiative, rolled out by private company LA Solutions and its partners Gresham Media, Blue Label Media and Think Wi-Fi, provided free internet at 25 Home Affairs sites. However, the funding model relied on advertisements shown to users when they logged onto the network.
The deal, signed in 2023, and Betway’s involvement earlier this year were never publicly announced until a recent social media revelation by TikTok user, @jkrizzle, sparking concerns over the use of government facilities to promote gambling.
To address the concerns, home affairs deputy director-general of institutional planning and support, Thulani Mavuso, stated on Thursday that the project was still in a “pilot phase”, which he cited as the reason for the lack of transparency.
“The launch of the project will be done upon the pilot phase being completed. Proper procedure was followed, and there were no transactions between the company, the officials, or principals in the department,” he said.
Mavuso claimed that it was the department that flagged the error and ensured that its partners complied accordingly with the agreement while bringing the services to the people.
He said that in principle, “the funding for the project cannot be drawn from any companies deemed as sin tax companies, upon which the campaign was withdrawn on the same day with immediate effect”.
“Strong measures have been put to all partners assisting in the project to not make an error like this or oversight,” he continued, adding that, “It must be noted that the department is not involved in the operation but oversight and reporting of service to the people.”
Mavuso also shifted focus to the benefits of the initiative, highlighting that “the Free Wi-Fi project has successfully delivered over one terabyte of internet access to thousands of South African home affairs service users – all at no cost to the Department of Home Affairs.”
“This was achieved through partners’ innovative, ad-funded model, which covers all operational costs through advertising when users log onto the network. LA Solutions remains a strategic partner to improve the work delivered by the government in partnership without costing the state.”
Politically, Betway has links to Martin Moshal, a South African tech millionaire and philanthropist who made headlines over the last year because of his multi-million-rand donations to the DA (R35-million), ActionSA (R30-million) and R4-million to Build One South Africa.
When approached for comments, Gresham Media, which brought Betway on board, declined to provide clarity and instead referred all questions to the Department of Home Affairs for what appeared to be political management, further fuelling suspicions around the lack of transparency in the deal.
In response to Sunday World, Betway Africa distanced itself from direct government involvement. Betway Africa said they were approached by Gresham Media “earlier this year to support a public benefit initiative by providing free Wi-Fi at select home affairs offices, ensuring visitors had access to free internet while waiting to be assisted in queues.”
“In line with common practice in airports, public transport, and other high-traffic areas globally, users accessed the service via a branded landing page.”
Betway Africa stressed, “Betway Africa had no contact or engagement with the Department of Home Affairs regarding this initiative.
“Aside from this contract, Betway Africa also has no financial or operational relationship with Gresham Media, and no individuals associated with Betway have any ties, direct or indirect, to the company or its leadership.”
MP Makashule Gana of Rise Mzansi on Wednesday issued formal written questions in Parliament to home affairs minister Leon Schreiber, who assumed office last year when the deal was long penned, imposing a 10-day deadline for a response.
Former minister Aaron Motsoaledi, who oversaw home affairs when the deal was signed, explained that he could no longer comment on the affairs of the portfolio since his redeployment as health minister.
The chairperson of the portfolio committee on home affairs Mosa Chabane said, “We have not been briefed on the subject matter. We will suggest you forward the questions to the department.
“We will follow up on the matter now that it has been brought to our attention.”
