Judge Neil (also referred to as Norman) Davis delivered the judgment on Monday, 2 November 2026. The ruling followed review applications by unsuccessful bidders Ithuba Lottery and Ringeta Consortium. The court found that Tau introduced an unlawful and procedurally unfair “parallel process” via a Ministerial Committee he appointed in January 2025.
Key findings
- The original Request for Proposals (RFP) did not provide for any such additional committee or re-evaluation.
- The National Lotteries Commission (NLC) evaluation had ranked Ringeta Consortium first (73.92 points), followed by Sizekhaya (72.95), Wina Njalo, and Ithuba.
- The Ministerial Committee conducted a full re-evaluation with different weightings/criteria and recommended Sizekhaya as preferred bidder (and Ithuba as reserve). Tau largely adopted its recommendations.
- Bidders were not informed of this extra stage, making it procedurally unfair. The judge accepted Tau acted in good faith and did not fully abdicate his decision-making role, but ruled that creating and relying on the unauthorised committee was an unlawful exercise of power.
The court ordered Tau to make a fresh decision without regard to the Ministerial Committee’s report or recommendations. It also noted issues with the timing and consideration of quality-assurance processes.
What happens next
The declaration of invalidity is suspended for two consecutive six-month periods (effectively up to 12 months) to protect the public interest and avoid disruption to lottery operations and funding for beneficiaries (e.g., charities, old-age homes). The first period allows Tau to reconsider the award; the second (if Sizekhaya is not re-selected) covers negotiation of a new agreement and any transitional arrangements. Lottery draws and operations continue in the meantime. Sizekhaya had taken over from Ithuba in June 2026.
Sizekhaya (linked to figures including Sandile Zungu and Moses Tembe, with Goldrush Holdings as a significant shareholder) expressed disappointment, noting no adverse findings against it on the merits of its bid and describing the issue as technical/procedural. Ithuba welcomed the ruling as vindicating concerns about fairness and transparency. The process has been controversial, with prior litigation, delays, and reporting on alleged political connections (including indirect links via a minority shareholder to Deputy President Paul Mashatile’s family circle); the court did not make findings of political interference or disqualify Sizekhaya on those grounds.
This continues a pattern in which successive South African national lottery licence awards have faced court challenges. Tau, the NLC, and Sizekhaya were ordered to pay the costs of Ithuba and Ringeta.
