President of African Transformation Movement (ATM) Vuyo Zungula has written a letter to Ebrahim Patel, requesting the Minister of Trade and Industry to recuse himself from the tender process of awarding the new lottery license.
This, after what he called shocking revelations by a whistleblower were brought forward to the ATM.
According to the information given to Zungula by the whistleblower, the new lottery license tender is one of the largest in South Africa, with an estimated value exceeding R180 billion. The final date for the submission of proposals was set for 3 February, with 18 companies having acquired the tender documents.
ALSO READ: Arthur Mafokate loses court battle to save luxury property.
“Of particular concern is the potential conflict of interest involving HCI, the current lottery license holder Ithuba, and your association with John Copelyn, who is linked to HCI. The whistleblower highlights the history of legal disputes between HCI and Ithuba, as well as the shared history between yourself and Mr. Copelyn in the union SACTWU. The concern raised is that these relationships could impact the fairness and transparency of the tender process, leading to apprehensions within civil society,” Zungula said.
Ithuba and HCI have been at loggerheads since 2015, shortly after the former won the bid to run the National Lottery operations for eight years in 2014. At the core of their conflict is a R325 million loan that HCI advanced to Ithuba to help it launch the national lottery.
Given the significant role that Minister Patel plays in the final decision-making process for awarding the lottery license, Zungula contends that it is imperative to ensure the process is free from any perception of bias or impropriety.
“To safeguard the integrity of the tender process and address public concerns, I respectfully request that you recuse yourself from the decision-making related to the new lottery license,” he continued.
“Failure to recuse yourself may necessitate further action, including referral to the Public Protector for investigation into the matter. I trust that you share my commitment to maintaining the highest standards of ethical conduct and public trust in the functioning of our government institutions,” the ATM President stressed.
Zungula also expressed his appreciation “for the whistleblower’s courage” in coming forward with this information. He said whistleblowers play a vital role in ensuring accountability and transparency, and that their efforts should be commended.
“I encourage the relevant authorities to protect and support individuals who raise legitimate concerns in the public interest,” Zungula concluded.
