Inside the R180 Billion Lottery Tender Controversy
The Mashatile Family has become the centre of a growing public debate after reports linked them to the new multibillion-rand lottery operator deal, South Africa’s largest tender to date. According to investigations, the Mashatile Family has a financial interest in Ithuba, the interim operator of the National Lottery. This revelation has raised concerns about transparency, governance, and political influence in the awarding of public contracts.
The Tender: South Africa’s Largest Yet
The National Lotteries Commission (NLC) recently awarded a tender worth approximately R180 billion to a new operator. While Ithuba Holdings, the current operator, received a one-year emergency extension, a new consortium—Sizekhaya Holdings—was selected to run the lottery for eight years from June 2026.
The scale of the tender has drawn intense scrutiny. At R180 billion, the contract to operate the national lottery is the country’s largest tender. Given the amount of money involved, the process has been under close watch.”
Mashatile Family: Influence or Interest?
The central issue lies in the Mashatile Family’s involvement. A relative of Deputy President Paul Mashatile—his sister-in-law—holds shares in Ithuba, raising potential conflict of interest concerns. Critics argue that this relationship could compromise the integrity of the tender process, particularly as Ithuba was awarded an emergency 12-month extension without undergoing a fresh bidding round.
The National Lotteries Commission extended Ithuba’s licence under Section 13 of the Lotteries Act, despite clear legal rulings against repeated use of emergency provisions.
Legal analysts warn that such moves could contravene the principles of fair and competitive public procurement.
Sizekhaya Holdings: The Next Operator
Sizekhaya Holdings, a consortium led by business heavyweights Moses Tembe and Sandile Zungu, is set to take over operations in mid-2026. The consortium brings more than three decades of combined experience in gaming and public operations.
Chairperson Moses Tembe has stated:
“We aim to bring innovation, transparency, and community development to the heart of lottery operations.”
Meanwhile, Fundi Sithebe, Sizekhaya’s non-executive director and former 4Racing CEO, emphasised the focus on digital transformation and ethical governance.
Implications for Governance and Public Trust
The linking of the Mashatile Family to this tender reignites national concerns about state capture, elite cronyism, and the blurred lines between business and politics in South Africa.
Transparency advocates argue that the National Lotteries Commission must clarify its decision-making process. The public deserves assurances that state contracts are awarded based on merit, not political connections.
What Happens Next?
With Sizekhaya Holdings set to begin operations in 2026, there are calls for Parliament and watchdog bodies to closely monitor both Ithuba’s interim period and the rollout of the new operator. This includes full disclosure of all shareholder interests, procurement records, and an independent audit of the transition process.
Holding Power to Account
The Mashatile Family’s link to this massive lottery tender underscores the need for robust governance, transparency, and accountability in South Africa’s public procurement processes. As the R180 billion deal transitions to a new operator, it is imperative that public trust is not undermined by perceptions of political favouritism.
ALSO READ: Gupta Mansions Up For Sale in South Africa: Saxonwold Luxury Estates Head to Auction
