Paul Mashatile’s sister-in-law linked to R180bn lottery tender, sparking patronage fears

Key topics:Deputy President’s sister-in-law linked to winning lottery bidder.R180bn tender awarded to politically connected Sizekhaya Holdings.Public, opposition parties demand transparency and accountability from government..Sign up for your early morning brew of the BizNews Insider to keep you up to speed with the content that matters. The newsletter will land in your inbox at 5:30am weekdays. Register here.Support South Africa’s bastion of independent journalism, offering balanced insights on investments, business, and the political economy, by joining BizNews Premium. Register here.If you prefer WhatsApp for updates, sign up to the BizNews channel here.The auditorium doors will open for BNIC#2 on 10 September 2025 in Hermanus. For more information and tickets, click here..By Kerry Lanaghan.Listen to this story instead: .A storm of controversy is swirling around the awarding of South Africa’s fourth national lottery licence - one of the country’s largest and most lucrative state tenders. Following a report made by Amabhungane which revealed that Deputy President Paul Mashatile’s sister-in-law holds an indirect stake in the winning bidder.The licence, which is estimated to be worth more than R180 billion over its eight-year term, was awarded in May to Sizekhaya Holdings, a consortium with political and business ties that are now drawing sharp scrutiny. Among its shareholders is Bellamont Gaming, a company co-directed by Khumo Bogatsu, the twin sister of Mashatile’s wife, Humile Mashatile. Bellamont’s other director is prominent KwaZulu-Natal businessman Moses Tembe, who also chairs Sizekhaya.Tembe and Bogatsu registered Bellamont Gaming in December 2023, just weeks before the licence contest deadline. The timing, combined with their proximity to political power, has reignited concerns over patronage and possible interference in state procurement processes.The involvement of Bogatsu, a private individual but intimately connected to the country’s second-highest office, has raised alarms, particularly as Tembe has been frequently seen in Mashatile’s company, including during official trips abroad and at family-linked events. In one instance, Mashatile reportedly stayed at Tembe’s luxury Durban residence shortly before the ANC’s 2024 manifesto launch, just weeks after the lottery bid deadline.Despite this, the Deputy President’s office has denied any interference. Spokesperson Keith Khoza said Mashatile had no role in adjudicating the licence and dismissed any suggestion of improper influence as baseless.Sizekhaya, too, has rejected the notion that its bid was politically tainted. “This is a defamatory inference,” the company said, insisting it had complied with all legal requirements, including the Lotteries Act, which prohibits political office-bearers from holding direct or indirect financial interests in lottery licence holders.Still, the optics are troubling. Bogatsu and Humile Mashatile have previously co-directed multiple companies, and Sizekhaya has not disclosed the size of Bellamont’s stake or Bogatsu’s stake in Bellamont. While Sizekhaya describes Bellamont as a minority shareholder, the lack of transparency has only deepened public suspicion.Further complicating the picture is the presence of ANC-linked businessman Sandile Zungu in the consortium. Like Tembe, Zungu accompanied Mashatile to France in May for an investment conference - a trip that has since come under media scrutiny. According to Amabhungane, the delegation reportedly included a businessman under investigation by Johannesburg Water.Political parties have seized on the issue. Build One South Africa (BOSA) has submitted a Promotion of Access to Information Act (PAIA) application to reveal the identities of those involved in evaluating the bid. BOSA deputy leader Nobuntu Hlazo-Webster noted, “At R180 billion, the contract to operate the national lottery is the country’s largest tender… the process requires a high duty of care to ensure no wrongdoing.”The EFF has also flagged concerns about Sizekhaya’s politically exposed connections, while criticising Minister of Trade and Industry Parks Tau’s reluctance to provide clear answers. Tau, who ultimately approved the Sizekhaya award after months of delay, previously acknowledged the need to assess bidders for political entanglements and ensure directors' fitness.Nonetheless, Tau announced Sizekhaya’s victory, capping a tender process that has already endured court battles and credibility questions.Whether or not Mashatile had direct involvement, the latest revelations underscore a recurring theme in South African politics: the ever-blurring lines between public power, private interest, and political patronage. The lottery may be a game of chance, but for many, the outcome of this tender appears anything but random.

Paul Mashatile’s sister-in-law linked to R180bn lottery tender, sparking patronage fears

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