Build One South Africa (BOSA) is exploring legal action following Minister of Trade, Industry & Competition Parks Tau’s announcement to extend the current national lottery license for another year.
The extension, which involves the single largest tender in South Africa—valued at nearly R200 billion over five years—raises serious concerns about legality, transparency, and fair competition.
BOSA is currently seeking legal counsel on whether the extension is in fact lawful. Given the massive financial stakes, the tender process must be conducted with the highest level of diligence to prevent corruption and ensure accountability.
“The circumstances surrounding this new license were questionable under the last administration and remain so under the GNU government,” said BOSA Deputy Leader, Nobuntu Hlazo-Webster MP, who is a member of Parliament’s Trade, Industry & Competition Portfolio Committee.
“We cannot allow a process of this magnitude to be shrouded in secrecy. The lack of transparency raises red flags—are these delays protecting certain bidders, or is there a legitimate issue that needs to be addressed?” said Hlazo-Webster.
BOSA is particularly concerned that both the Public Finance Management Act (PFMA) and the Lotteries Act do not explicitly permit the extension of a bid validity period beyond its initial terms. Under standard procurement practices, once a bid validity period expires, the process should either be concluded or restarted.
An extension without prior agreement from all bidders could amount to irregular procurement and potentially violate Section 217 of the Constitution, which mandates fairness, transparency, and competitiveness in government contracting.
While the Lotteries Act grants the Minister authority to appoint the National Lotteries Commission (NLC) and oversee licensing, it explicitly requires that licenses be awarded through a competitive process. Any deviation from this principle—such as an arbitrary extension of the bid period—could be legally challenged as unfair and unlawful.
BOSA insists that a legally sound alternative exists: issuing a temporary license governed by stringent regulations. This approach would:
- Ensure continuity of lottery operations while preventing funding gaps for social programmes;
- Allow sufficient time for proper due diligence without a rushed decision;
- Safeguard against a manipulated process that gives certain bidders an unfair advantage.
“For the sake of the vulnerable communities that rely on lottery funding and for the preservation of public trust in government institutions, BOSA will leave no stone unturned in ensuring this process is transparent and above board,” Hlazo-Webster concluded.
BOSA will provide further updates as legal consultations progress.
Media Statement by
Roger Solomons: BOSA Acting Spokesperson
Tuesday 25 February 2025
Media Enquiries:
Roger Solomons – BOSA Acting Spokesperson – 072 299 3551