More legal battles to be fought over lottery contract
With less than three weeks to go before the expiry of Uthingos contract as the national lottery operator, the key contenders are preparing for more legal battles over the R40m-a-year business.
Igwija, a consortium led by businesswoman Danisa Boloyi, is to take the National Lottery Board to court to force it to provide documentation showing how Gidani was chosen as the preferred bidder, says a Mail & Guardian Online report. This follows last weeks Pretoria High Court judgment overturning Trade and Industry Minister Mandisi Mpahlwas decision to award the Gidani consortium the licence. And Gidanis acting CE, Bongani Khumalo, said his consortium was considering appealing against the ruling. Igwija, which came third in the bidding, said it would capitalise on the shortfalls of both Uthingo and Gidani to press its claim. Muzi Makhaya, one of Igwijas founders, said the judgment was a major boost for his consortium. Our case will be based on what is now a precedent. The National Lottery Act is very clear that, if you are found to have wrong people, your application will be rejected. The minister said Uthingo was wrong to have Education Minister Naledi Pandor as one of its shareholders and that Gidani was wrong to have ANC politicians as shareholders. This automatically qualifies us as the preferred bidder. Full Mail & Guardian Online report