Case Law[2025] ZAGPPHC 1298South Africa
Ithuba Lottery RF Pty Ltd v Minister of Trade, Industry and Competition and Others (108644/2025) [2025] ZAGPPHC 1298 (27 November 2025)
Headnotes
in the normal course. The principles that should be applied in the exercise of the court’s discretion on the determination of whether a matter is urgent are well established and have been confirmed in various cases.[2]
Judgment
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# South Africa: North Gauteng High Court, Pretoria
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## Ithuba Lottery RF Pty Ltd v Minister of Trade, Industry and Competition and Others (108644/2025) [2025] ZAGPPHC 1298 (27 November 2025)
Ithuba Lottery RF Pty Ltd v Minister of Trade, Industry and Competition and Others (108644/2025) [2025] ZAGPPHC 1298 (27 November 2025)
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sino date 27 November 2025
IN
THE HIGH COURT OF SOUTH AFRICA
GAUTENG
DIVISION, PRETORIA
CASE
NO: 108644/2025
(1)
REPORTABLE:
YES
/NO
(2)
OF INTEREST TO OTHER JUDGES: YES/
NO
(3)
REVISED:
DATE: 27/11/2025
SIGNATURE
In
the matter between:
ITHUBA
LOTTERY RF PTY LTD
Applicant
And
MINISTER
OF TRADE, INDUSTRY AND COMPETITION
First
Respondent
NATIONAL
LOTTERIES COMMISSION
Second
Respondent
SIZEKHAYA
HOLDINGS RF (PTY) LTD
Third
Respondent
BOSELE
GAMING RF (PTY) LTD
Fourth
Respondent
WINA
NJALO RF (PTY) LTD
Fifth
Respondent
RINGETA
CONSORTIUM RF (PTY) LTD
Sixth
Respondent
GIYA
GAMES HOLDINGS (PTY) LTD
Seventh
Respondent
UMBULELO
LOTTERY SERVICES RF (PTY) LTD
Eighth
Respondent
LEKALINGA
(RF) (PTY) LTD
Ninth
Respondent
ORDER
This
judgment was prepared and authored by the Judge whose name is
reflected and is handed down electronically by circulation to
the
parties/their legal representatives by e-mail and by uploading it to
the electronic file of this matter on Caselines. The date
for
hand-down is deemed to be 27 November 2025.
1.
The application is dismissed.
2.
The Applicant to pay the costs of the respondents on scale C,
including the costs
of two counsel where so employed.
JUDGMENT
TOLMAY
J
1.
This is an opposed urgent application in which the applicant, Ithuba
Lottery
RF (Pty) Ltd (“Ithuba”), seeks to interdict the
implementation of the award of the Fourth National Lottery Licence to
the third respondent, Sizekhaya Holdings RF (Pty) Ltd (“Sizekhaya”),
pending the final determination of a review application.
2.
The
Minister’s power to award the Fourth National Lottery Licence
is conferred by s13 of the Lotteries Act.
[1]
The Request for Proposal (RFP) sets out the requirements for the
award of the licence. It specifies the objectives and mandates
a
three-stage evaluation process, consisting of Pre-Qualification,
Technical Evaluation and Financial and B-BBEE Evaluation. The
RFP
requires the second respondent (“the NLC”) to assess all
applications and present its findings to an Adjudication
Committee
(“AC”). The AC conducts an adjudication and prepares a
report for the Minister. The RFP also requires the
appointment of
independent quality assurers (“QA”).
3.
Ithuba contends that it seeks interim relief because the Minister’s
reasons
for awarding the Fourth Licence to Sizekhaya and the Rule 53
record reveal a series of irregularities which vitiated the
Minister’s
award. According to Ithuba, these alleged
irregularities violate its rights to just administrative action and a
fair, competitive
and equitable public procurement process. Ithuba
further alleges that it has satisfied the requirements of an interim
interdict.
It argues that the present case presents the clearest of
cases that warrants the granting of interim relief. It alleges
irreparable
harm on the ground that by the time its review
application is heard, Sizekhaya would have substantially implemented
the award.
It further contends that this situation substantially
harms the public interest and the rule of law.
4.
Uniform
Rule 6(12)(b) requires that a party bringing an urgent application
must explicitly state the grounds for urgency and provide
reasons why
the applicant cannot be afforded substantial redress if a hearing is
only held in the normal course. The principles
that should be
applied in the exercise of the court’s discretion on the
determination of whether a matter is urgent are well
established and
have been confirmed in various cases.
[2]
5.
The
review application was filed on 4 July 2025. Despite that, this
application was only launched on 1 September 2025. The reason
offered
for this delay is that Ithuba says that it was waiting for the
Minister to provide reasons for his decision. It is difficult
to
establish why the reasons were required in order to launch the urgent
application, in the light of the fact that it was able
to launch the
review application. Ithuba could have filed this application with the
review application as is done in matters like
this. The urgency is
self-created. I wholeheartedly agree with what was said in
Wina
Njalo v the Minister of Trade, Industry and Competition and
Others
:
[3]
“
Self-created
urgency is fatal to an application. Self-created urgency is urgency
which stems from a deliberate in action until the
hour of reckoning.
Courts have consistently refused urgent applications in cases were
the urgency relied upon was clearly self-created
with the appropriate
order of striking the matter from the roll. Consistency in striking
self-created urgency matters from the
roll is important as it informs
the public and legal practitioners that the rules of Court and
Practice Directives can only be
ignored at a litigant’s
peril.”
[4]
6.
Despite the above I have decided to determine the application in the
interest
of justice because of the public’s interest in the
matter and to provide some measure of certainty pending the
determination
of the review. This decision should not be construed as
a deviation from the principles applicable to the determination of
urgency.
7.
On
what basis interdictory relief should be granted needs some
consideration. In
Commercial
Stevedoring Agricultural and Allied Workers’ Union and others v
Oak Valley Estates (Pty) Ltd and another
[5]
where the Constitutional Court dealt with a final interdict the
following was said about interdictory relief in general:
“
[i]n
a constitutional order, interdicts occupy a place of importance. In
granting an interdict a court enforces ‘the principle
of
legality that obliges courts to give effect to legally recognised
rights’. The purpose of injunctive relief is to ‘put
an
end to conduct in breach of the applicant's rights’. An
interdict is intended to protect an applicant from the actual
or
threatened unlawful conduct of the person sought to be interdicted.
Thus, for an interdict to be granted, it must be shown,
on a balance
of probabilities … that unless restrained by an interdict, the
respondent will continue committing an injury
against the applicant
or that it is reasonably apprehended that the respondent will cause
such an injury.”
[6]
8.
It
is imperative to keep the above in mind when considering whether an
interdict should be granted. The requirements for an interim
interdict are by now well-known. The first is a prima facie right.
The threshold for establishing a prima facie right is stringent,
particularly when restraining an organ of state as is the case
here.
[7]
It must be granted only
in the clearest of cases with due consideration being given to
the separation of powers.
[8]
The
second requirement is a well-grounded apprehension of irreparable
harm, the third is that the balance of convenience favours
the
granting of an interim interdict and lastly that the applicant has no
alternative remedy.
9.
Ithuba’s
argument was that it had much more than a prima facie right, it has a
clear right. It was therefore argued that there
is no need to prove
irreparable harm as would be the case when only a prima facie right
is established.
[9]
The same, it
was argued, applies to the requirement of the balance of
convenience.
[10]
Only in the
event that the Court should find that there is no clear right will
reliance be placed on a prima facie right.
10.
In
Economic
Freedom Fighters v Gordhan and Others
[11]
the Constitutional Court said:
“
In
addition, before a court may grant an interim interdict, it must be
satisfied that the applicant for an interdict has good prospects
of
success in the main review. The claim for review must be based on
strong grounds which are likely to succeed. This requires
the court
adjudicating the interdict application to peek into the grounds of
review raised in the main review application and assess
their
strength. It is only if a court is convinced that the review is
likely to succeed that it may appropriately grant the interdict.
The
rationale is that an interdict which prevents a functionary from
exercising public power conferred on it impacts on the separation
of
powers and should therefore only be granted in exceptional
circumstances.”
[12]
11.
This Court must tread carefully when taking ‘a peek’
into the review grounds
as it must keep in mind that the review court
is ultimately the forum that must pronounce on the review grounds.
The view of this
Court regarding the grounds of review is limited to
an analysis of whether an interim interdict should be granted and is
not binding
on the review court. I will now consider the review
grounds on this basis.
12.
Ithuba
says that the Minister jettisoned the scoring criteria for a purely
subjective preference. The Minister denies this and points
out that
the evaluation of bids is not a mere mechanical exercise.
[13]
It was explained that the Minister was required to assess not merely
raw scores, but the long-term viability, credibility, and
national
strategic fit of each business plan. To demand pure adherence to
numerical output would be to render the executive authority
incapable
of making a rational decision for the public good.
13.
In
Gidani
II
[14]
the purpose of the RFP process was explained as follows
:
“
The
RFP process... was not designed to identify how the Minister would
make his decision. Its purpose... was to identify how the
Board would
evaluate the competing bids for the purpose of advising the Minister.
The Minister was thereafter required to make
up his own mind, by
reference to such factors as he might properly regard as
significant…”
[15]
The
scoring by the committees was advisory and the Minister had to make
up his own mind by executing a qualitative assessment of
all the
relevant factors. The argument by Ithuba is accordingly challenged by
the Minister.
14.
Ithuba
argues that the Minister acted unlawfully by awarding the licence
based on financial documents that were conditional and
therefore
insufficient. Section 13(2)(b)(ii) of the Lotteries Act requires the
Minister to “be satisfied” that the
applicant has the
necessary financial resources. This is a subjective standard,
assessed objectively for rationality. The Minister’s
reliance
on the RMB Letter of Comfort and the Genesis Analytics Report must be
evaluated in that light. The RMB letter was conditional,
subject to
final credit committee approval and the award of the licence. In
Gidani
III
the Court held that such conditionality is commercially standard and
does not negate the substance of the commitment. The Court
accepted
that expecting a financial institution to issue an irrevocable
funding letter before final documentation and award would
be
commercially absurd.
[16]
15.
The
Minister was aware of the fact that Sizekhaya’s loan facilities
were subject to conditions precedent which included final
documentation and the award of the licence. He accepted that these
constituted standard administrative process. The Court cannot
at this
point, conclude that his decision was irrational and that Ithuba is
correct about the issue of funding.
Gidani
III
upheld the principle that the judiciary must defer to the executive’s
evaluation of expert and economic advice, confirming
that “
even
to a Court holding a different view... [this] would not constitute an
appearance of irrationality
”.
[17]
16.
The
Minister, when considering financial viability relied on the Genesis
Analytics Report, which affirmed the credibility and viability
of
Sizekhaya’s structured funding plan. The absence of a finalised
loan agreement on its own did not render the tender non-compliant,
it
was supported by expert analysis. In
Gidani
III
the Court observed expecting any commercial entity to commit
irrevocably by letter before final contractual documentation would
be
absurd.
[18]
17.
There is no merit in the argument that the Minister acted unlawfully
by awarding the licence without
fully committed financing. The
Lotteries Act requires the Minister to “
be satisfied
”
that the applicant has the necessary financial resources. This
entails forming a rational opinion and does not require
absolute certainty or unconditional documentation as was held in
Gidani III
.
18.
Ithuba
relies on
Gidani
II
for support of the argument that any conditional funding is unlawful.
That judgment concerned a specific factual matrix, namely,
the
Minister’s failure to interrogate the solvency risk posed by a
fixed rand commitment and the unlawful imposition of a
resolutive
condition. It did not establish a general rule that conditional
funding is, per se, irrational or non-compliant. The
facts are
distinguishable from
Gidani
II.
There is no fixed and committed bond, no unlawful performance bond,
and no failure to interrogate risk.
[19]
Therefore the facts of this case are distinguishable from what
happened in
Gidani
II
.
19.
The next complaint is that the appointment of the quality assessors
(QA) was irregular. Ithuba
says that the first QA was MMB Consulting
(MMB) however their report reveals that it was never instructed to
“conduct reviews
of the RFP evaluations and adjudication
processes to ensure that all criteria were applied consistently and
impartially to all
Applicants”. MMB records it did not “express
an opinion or assurance conclusion”. Ithuba points out that the
MMB report reveals that it deferred to the conclusions of the AC,
rather than making any independent assessment of the process.
For
these reasons Ithuba says MMB failed to fulfil the function of an
independent external QA. The second QA process was
according to
Ithuba also defective. The requirement was that it should be
independent, but it was not as it was composed of Department
of
Trade, Industry and Competition personnel and the Minister’s
counsel and other advisors.
20.
Ithuba
alleges that the appointment of the Ministerial Committee (MC) was
unlawfully constituted because it was not provided for
in the RFP.
However, it provided for the inclusion of advisers and this
entitlement was confirmed in both
Gidani
II
[20]
and
Gidani
III
.
[21]
21.
In
relation to the aforementioned complaints it must be said that Ithuba
must prove that the Minister’s exercise of his discretion
was
irrational and not only whether it came from a contested source. In
Minister
of Home Affairs and Others v Scalabrini Centre and Others
[22]
the
SCA explained:
“
But
an enquiry into rationality can be a slippery path that might easily
take one inadvertently into assessing whether the
decision was one
the court considers to be reasonable. As appears from the passage
above, rationality entails that the decision
is founded upon reason —
in contra-distinction to one that is arbitrary — which is
different to whether it was reasonably
made. All that is required is
a rational connection between the power being exercised
and the decision, and a finding
of objective irrationality will be
rare.”
[23]
Applying
the aforesaid to this case, it cannot be said that the appointment of
the MC was unlawful or irrational. There is also
no evidence before
me that the Minister abdicated his statutory function.
22.
Ithuba furthermore raises the issue of failure to
conduct a fitness and propriety
assessment. Section 13(3)(a)
and (b) of the Lotteries Act, provides that, before awarding a
license, the Minister “
shall take into account…
whether any person who appears to the Minister to be likely to manage
the business or any part of
the business of the National Lottery
under the licence, is a fit and proper person to do so; [and]…
whether any person for
whose benefit that business is likely to be
conducted, is a fit and proper person to benefit from it”.
23.
Chapter 9 of the RFP provides inter alia that applicants are required
to undergo an independent
probity assessment by the State Security
Agency (SSA). Ithuba says the Minister and the NLC failed to comply
with Chapter
9 and the Minister failed to consider whether
Sizekhaya was fit and proper. The complaint was that Sizekhaya has
significant foreign
shareholding and the SSA could not screen foreign
persons or entities for fitness and propriety, and that no
alternative objective
mechanism for screening such persons was
employed. The only fitness and propriety assessment of foreign
nationals involved a notice
sent to Sizekhaya and other bidders on 27
September 2024, in which they were asked whether— “
Any
individual shareholders or directors of the individual applicant or
any direct or indirect shareholders of the applicant were
under
investigation or had been found guilty of any criminal offence in any
jurisdiction, and if so, to provide details thereof.”
For
these reasons Ithuba says the Minister’s decision was
irregular.
24.
The SSA and not the Minister determines the appropriate procedure. It
was neither unlawful
nor irrational for the Minister to rely on
the information provided to him by the SSA.
25.
The further issue raised in this regard was the financial interest of
political office bearers.
The central issue under section
13(2)(b)(iv) of the Lotteries Act, as expanded by the RFP, is whether
any political office-bearer
holds a direct or indirect financial
interest in the applicant or its shareholders. The Lotteries Act only
referenced a direct
financial interest, but the RFP refers to both a
direct and indirect financial interest. This prohibition is designed
to prevent
undue influence or benefit by political office-bearers in
the licensing process. Ithuba’s allegations centre on Deputy
President
Paul Mashatile and his alleged associations with Ms. Khumo
Bogatsu, Mr. Moses Tembe, and Mr. Sandile Zungu. The legal question
is whether these relationships give rise to a disqualifying financial
interest.
26.
In
order to substantiate its argument Ithuba relies on the definition of
‘financial interest’ as explained in
Stellenbosch
Farmers Winery Ltd v Distillers Corporation (SA) Ltd
[24]
where a financial interest in a business was defined as
follows:
“
the
relationship between a person and the business in question where he
is so circumstanced with respect to it that his financial
position is
affected by it either beneficially or detrimentally”.
[25]
27.
Deputy President Mashatile, on the evidence presently available, does
not have any direct or indirect
shareholding in Sizekhaya or is a
party to any contractual arrangement that would lead to a direct
financial interest. As far as
an indirect financial interest is
concerned, it was argued on behalf of the Minister that to determine
that will require an investigation.
There is no evidence before this
Court to justify such a conclusion at this point the complaint is
based only on the existence
of political proximity and social
association.
28.
In the Minister’s heads of argument, it is conceded that Ms.
Bogatsu, Mr. Tembe and Mr.
Zungu may hold indirect financial interest
in Sizekhaya. For present purposes it cannot be found that the
Minister’s determination
of fitness and propriety was unlawful
or irrational. He relied on disclosures, legal advice and made a
decision based on the information
available to him.
29.
Ithuba is aggrieved that the QA process was not timeously
completed. It says that neither
the first Quality Assurance Report
nor the second one was completed or provided to the Minister
before he received the AC’s
recommendations. Clause 8.2.4 of
the RFP provided as follows:
“
The
NLC shall appoint one or more independent external quality assurers
to conduct reviews of the RFP evaluations and adjudication
processes
to ensure that all criteria were applied consistently and impartially
to all Applicants. These reviews may be conducted
during the
evaluations and adjudication processes. The NLC shall appoint a
further independent quality assurer nominated by the
Minister to
review the NLC’s processes after the NLC has concluded its
adjudication of the bids, but before the NLC makes
its
recommendations to the Minister.”
30.
Ithuba argues that while the RFP does not expressly say that the same
applies to the first report,
it does so by clear implication and the
materiality of non-compliance with peremptory requirements is
assessed in terms of whether
the relevant conduct frustrates the
purpose of the impugned provision. The Minister does not deny the
sequence of the reports but
says that clause 8.2.4 of the RFP does
not prescribe a rigid procedural formula, nor does it elevate
sequencing to a jurisdictional
fact. The Minister’s duty, it
was argued, under section 13 of the Lotteries Act is not one of
flawless procedural choreography
but of rational satisfaction. The
Minister considered the AC’s recommendations alongside both
Quality Assurance Reports and
consulted with the AC and QAC before
making his decision.
31.
In
Allpay
Consolidated Investment Holdings (Pty) Ltd And Others v Chief
Executive Officer, South African Social Security Agency, And
Others
[26]
(
Allpay
1)
the materiality principle was affirmed and it was explained as
follows:
“
Under
the Constitution there is no reason to conflate procedure and merit.
The proper approach is to establish, factually, whether
an
irregularity occurred. Then the irregularity must be legally
evaluated to determine whether it amounts to a ground
of
review under PAJA. This legal evaluation must, where appropriate,
take into account the materiality of any deviance from legal
requirements, by linking the question of compliance to the purpose of
the provision, before concluding that a review ground under
PAJA has
been established.
Once
that is done, the potential practical difficulties that may
flow from declaring the administrative action
constitutionally
invalid must be dealt with under the just and
equitable remedies provided for by the Constitution and PAJA. Indeed,
it may often
be inequitable to require the rerunning of the flawed
tender process if it can be confidently predicted that the result
will be
the same.
Assessing
the materiality of compliance with legal requirements in our
administrative law is, fortunately, an exercise unencumbered
by
excessive formality. It was not always so. Formal distinctions were
drawn between 'mandatory' or 'peremptory' provisions on
the one hand
and 'directory' ones on the other, the former needing strict
compliance on pain of non-validity, and the
latter only
substantial compliance or even non-compliance. That strict
mechanical approach has been discarded. Although
a number of
factors need to be considered in this kind of enquiry, the central
element is to link the question of compliance to
the purpose of the
provision. In this court O'Regan J succinctly put the
question in ACDP v Electoral Commission as
being 'whether
what the applicant did constituted compliance with the statutory
provisions viewed in the light of their purpose'.
This is not
the same as asking whether compliance with the provisions will lead
to a different result.”
[27]
(Footnotes
omitted).
32.
At this stage the alleged procedural deviation cannot be said to have
frustrated the purpose of
the RFP or rendered the Minister’s
decision irrational.
33.
Ithuba says that the licence was negotiated before the award was made
contrary to clauses 8.2.5
and 8.2.6 of the RFP that provides as
follows:
“
8.2.5.
The Minister may, after consultation with the NLC, make a final
decision to award the Licence to the Successful Applicant.
8.2.6.
Thereafter, the final terms of the Licence Agreement will be
finalised by the Minister with the Successful Applicant after
consultation with the NLC, with specific terms and conditions agreed
upon by both parties within the parameters of the RFP and
the
Lotteries Act.”
The
argument was that before entering licence negotiations, the Minister
had to have already decided on the successful applicant.
The
subsequent licence negotiations were intended merely to “
finalise
”
licence terms, not to provide an additional period within which the
Minister could decide upon the successful applicant.
34.
It was argued on behalf of the Minister that Ithuba’s reliance
on the timing of licence
negotiations echoes the procedural objection
raised in
Gidani III
, where it was contended that the Minister
could not have considered a financial report dated after the award
decision. The Court
rejected that argument, holding that the Minister
had already satisfied himself of the relevant facts through prior
consultations
and merely requested a formal record of that
information and says that the same principle applies here. Emphasis
was placed on
the extensive engagement with the NLC, the AC and the
MC.I agree that for purposes of this application this Court cannot
conclude
that the process followed was irrational or unlawful.
35.
The
onus is on Ithuba to prove on a balance of probabilities that it has
a clear right to an interim interdict. It did not succeed
in proving
such a right. The onus is less onerous to prove the existence of a
prima facie right as the right may be open to some
doubt but the
other requirements for an interim interdict now come into play. In
Webster
v Mitchell
[28]
it was explained that:
"The
right to be set up by an applicant for a temporary interdict need not
be shown by a balance of probabilities. If it is
"prima facie
established though open to some doubt" that is enough.
The
proper manner of approach I consider is to take the facts as set out
by the applicant, together with any facts set out by the
respondent
which the applicant cannot dispute, and to consider whether, having
regard to the inherent probabilities, the applicant
could on those
facts obtain final relief at the trial. The facts set up in
contradiction by the respondent should then be considered.
If serious
doubt is thrown upon the case of the applicant he could not succeed
in obtaining temporary relief, for his right, prima
facie
established, may only be open to "some doubt". But if there
is mere contradiction, or unconvincing explanation,
the matter should
be left to trial and the right be protected in the meanwhile, subject
of course to the respective prejudice in
the grant or refusal of
interim relief."
[29]
36.
Ithuba
relies on the right to just administrative action to support its
argument that it is entitled to an interim interdict.
In
Outa
[30]
,
the Constitutional Court explained that an interdict restraining a
state organ should only be granted in the clearest of cases.
Ithuba
however relied on
South
African Informal Traders Forum and Others v City of Johannesburg and
Others; South African National Traders Retail Association
v City of
Johannesburg
[31]
(
SA
Informal Traders
)
to support the argument that an interim interdict could be granted
where an applicant demonstrates prospects of success on review.
37.
The facts underpinning the decision in
SA Informal Traders
is
clearly distinguishable from the facts in this matter. There the
Constitutional Court held that a prima facie right may
be established
by demonstrating prospects of success in the review. That case
however concerned applicants who sought to
protect an existing,
conceded right to trade in specified stalls. There was no dispute
over their entitlement and the City expressly
conceded unlawful
conduct. The interim relief sought in that case was intended to
preserve the applicants’ possession of
specific trading stalls
pending the final hearing, because the interim solution offered by
the city would have forced the traders
to settle for relocation to
unspecified stalls. The Court therefore treated the interim
application as one to protect an acknowledged,
ongoing substantive
right, not merely a right to have a decision reviewed.
38.
Ithuba does not seek that kind of status-quo protection. The right
that Ithuba seeks to protect
is disputed by the Minister, the NLC and
Sizekhaya. The principle enunciated in
Outa
that more than the
right to just administrative action is required before interim relief
can be granted should be applied and the
interdict should only be
granted in the clearest of cases in order to acknowledge and respect
the separation of powers. The following
was said in
Outa
in
relation to the granting of an interim interdict:
“
Under
the Setlogelo test the prima facie right a claimant must establish is
not merely the right to approach a court in order to
review an
administrative decision. It is a right to which, if not protected by
an interdict, irreparable harm would ensue. An interdict
is meant to
prevent future conduct and not decisions already made. Quite apart
from the right to review and to set aside impugned
decisions, the
applicants should have demonstrated a prima facie right that is
threatened by an impending or imminent irreparable
harm. The right to
review the impugned decisions did not require any preservation
pendente lite.”
[32]
39.
Ithuba
disagrees with the Minister’s decision in what is essentially a
polycentric exercise of the Minister’s powers.
The Minister and
the NLC interpreted the RFP in a certain manner, whether it was
correct or not is not for this Court
to determine. In
Bel
Porto School Governing Body and Others v Premier, Western Cape, and
another
[33]
the Constitutional Court
said:
“
The
role of the Courts has always been to ensure that the administrative
process is conducted fairly and that decisions are taken
in
accordance with the law and consistently with the requirements of the
controlling legislation. If these requirements are met,
and if the
decision is one that a reasonable authority could make, Courts would
not interfere with the decision.”
[34]
40.
The
SCA in
Logbro
Properties CC v Bedderson NO and Others
[35]
explained citing Hoexter
[36]
with approval:
“
.
. .
a
judicial willingness to appreciate the legitimate and
constitutionally ordained province of administrative agencies; to
admit
the expertise of those agencies in policy-laden or polycentric
issues; to accord their interpretation of fact and law due respect;
and to be sensitive in general to the interests legitimately pursued
by administrative bodies and the practical and financial constraints
under which they operate. This type of deference is perfectly
consistent with a concern for individual rights and a refusal to
tolerate corruption and maladministration. It ought to be shaped not
by an unwillingness to scrutinise administrative action, but
by a
careful weighing up of the need for - and the consequences of -
judicial intervention. Above all, it ought to be shaped by
a
conscious determination not to usurp the functions of administrative
agencies; not to cross over from review to appeal [quoted
from
Hoexter, par [64] below, at 501 - 2].”
[37]
41.
The above illustrates that the
Outa
principle should apply and
that this Court. considering the factual matrix of this case cannot
find that a clear or
prima facie
right exists.
42.
This
application has an element of déjà vu as ten
years ago with the award of the Third National Lottery Licence
in
Gidani
(Pty) Limited v Minister of Trade and Industry,
[38]
(
Gidani
I)
the same scenario played out in court. Aggrieved by the Minister’s
decision to award the licence to Ithuba Holdings, Gidani
sought
an interim interdict pending a review. The Court in
Gidani
I
had the following to say:
“
What
Gidani actually seeks to protect is something different. Gidani is
worried that if lthuba is allowed to prepare itself to take
up its
responsibilities on 1 June 2015 by entering into contracts and making
other financial commitments, lthuba will create, as
it were, facts on
the ground and position itself better to make an argument to a
reviewing court that upon a finding of invalidity
in relation to the
Minister's decision, the award of the license to lthuba should not be
set aside because of the great prejudice
to lthuba and because of the
dislocation to the administration of the lottery that this would
cause.”
[39]
And “But I am by no means convinced that a market participant
in this high risk high reward industry which chooses to spend
money
on risk will receive much judicial sympathy in the context described.
I think that the weight which Gidani ascribes to the
alleged risk to
its commercial interests is overstated.”
[40]
43.
The risk faced by Ithuba is similarly a commercial risk which is part
and parcel of this high-risk
industry. One should also not loose
sight of the fact that Sizekhaya already started with the
implementation plans during June
2025. It says that the Commencement
Transition Plan and the preparatory steps towards the Transition
Period did not commence on
2 September 2025 but immediately after
Sizekhaya concluded the Licence Agreement in May 2025. This has been
known to Ithuba Lottery
since at least May 2025.
44.
The interest of Ithuba must be weighed against the public interest
that the lottery will not be
interrupted unless the review succeeds.
Although Ithuba did not initially give any undertaking to make up any
losses that Sizekhaya
or the lottery may suffer, it gave a very
limited undertaking during the hearing. This undertaking was limited
to an amount of
R50 million for the losses that Sizekhaya may suffer
but subject to conditions, and only if such losses can be proven .
The offer
did not cover any other losses and Sizehaya indicated that
the offer was wholly inadequate.
45.
Ithuba
referenced numerous failures by the Minister, the NLC and the
different committees to comply with the procedural requirements
and
thus resulting in a decision by the Minister which Ithuba says should
be reviewed and set aside. These failures are disputed
by both the
Minister and the NLC. In
Gidani
II
[41]
the same Judge that refused the interim interdict ultimately reviewed
and set aside the Minister’s decision and remitted
it to the
Minister for reconsideration. This illustrates that Ithuba has an
effective alternative remedy available to it. The matter
ended up in
court again and in
Gidani
III
the
review was dismissed.
[42]
46.
The
granting of another temporary licence as suggested by Ithuba is not a
viable option. The appointment of a temporary licensee
requires a
competitive process. As is illustrated by the litigation
in
Wina
Njalo
[43]
there
can be no certainty that it will be possible to run a properly
competitive temporary licence process that results in the appointment
of a temporary licensee if the implementation of the Fourth Licence
is interdicted. Without a temporary licensee the National Lottery
cannot operate and this will be prejudicial to the public interest.
47.
The relief sought in the review is instructive. Ithuba seeks in the
review application remittal
to the Minister and not substitution as
the preferred bidder. This confirms that the review court is asked to
enforce a procedural
right and not a substantive entitlement to
the licence. This is indicative of the fact that there is no
irreparable
harm that needs to be prevented by the
granting of an interim interdict. The ability of the Minister to
conduct a fresh,
fair licensing process is not extinguished by
Sizekhaya’s expenditure or operational entrenchment. Even if
the award is set
aside, the Minister remains empowered to initiate a
new licensing process, which fully vindicates Ithuba’s
procedural right
under section 33 of the Constitution. Ithuba’s
own prayer for remittal demonstrates that the only injury it faces is
the
delay in a procedural reassessment of the bids.
48.
The balance of convenience does not favour Ithuba. The public
interest militates against the granting
of the interdict. It is in
the public interest that the Lottery should continue uninterrupted.
There is nothing before this Court
to indicate that Sizekhaya
is not in a position to comply with its obligations in terms of the
licence. On the papers before
me it is uncontradicted that so far it
has been taking all the necessary steps to be able to administer the
National Lottery from
June 2026. If the process is interdicted now it
will lead to a very real possibility that the National Lottery will
be interrupted.
This will lead to the good causes supported by it to
suffer harm. Ithuba did not establish any inconvenience to itself. It
asserts
only its right to lawful administrative action as the right
it seeks to protect through the interim interdict and relies on a
combination
of review grounds pleaded in its review application and
additional grounds set out in its founding affidavit to contend that
it
has strong prospects of success in the review application.
49.
Ithuba did not meet the requirements for an interim interdict. It did
not show a clear right.
In considering a prima facie right, the other
requirements for an interim interdict come into play. There is
no indication
that Ithuba will suffer irreparable harm if the
interdict is not granted and the balance of convenience does not
favour Ithuba.
The review court can still grant adequate relief. This
was illustrated in the
Gidani
matters.
50.
As a result, the application should be dismissed with costs.
The
following order is made:
1.
The application is dismissed.
2.
The Applicant to pay the costs of the respondents on scale C,
including the costs
of two counsel where so employed.
R
TOLMAY
JUDGE
OF THE HIGH COURT
GAUTENG
DIVISION, PRETORIA
APPEARANCES:
For
Applicant: Adv A COCKRELL SC; Adv M MBIKIWA & Adv J DAVIS
instructed by Roodt Mkhabela Attorneys Inc.
For
First Respondent: Adv IV MALEKA SC; Adv JA MOTEPE SC & Adv KD
MAGANO instructed by Malatji & Co Attorneys.
For
Second Respondent: Adv N MAENETJE SC; Adv B LEKOKOTLA & Adv N
SAKATA instructed by Malatji & Co Attorneys.
For
Third Respondent: Adv N RAJAB-BUDLENDER SC; Adv I CURRIE & Adv N
LUTHULI instructed by Cliff Dekker Hofmeyer.
Date
of hearing: 28 – 29 October 2025.
Date
of judgment: 27 November 2025.
[1]
57 OF 1997. Section13 reads as follows: Licence to conduct National
Lottery.
(1)
The Minister may, after consultation with the board, issue one
licence at one time authorising a person to conduct the National
Lottery, which for purposes of section 57 will constitute a lottery,
in accordance with the provisions of this Act.
(2)
Before a licence is granted under this section-
(a)
the
Minister shall by notice in the
Gazette
and in not
less than two newspapers circulating in every province invite
interested parties to apply in writing for a copy
of a request for
proposal or any other document which may be made public, and the
board shall require payment for any such documents;
(b)
the
Minister shall be satisfied that-
(i) the
applicant for the licence contemplated in subsection (1) has
sufficient appropriate knowledge or experience
to conduct the
National Lottery, or has unconstrained and continuous access
thereto, and will be able to conduct the National
Lottery strictly
in accordance with this Act, the licence of the National Lottery and
any agreement pertaining to the licence;
(ii) the
applicant has the necessary financial and other resources to conduct
the National Lottery;
(iii) the
applicant will for the duration of the licence show a clear and
continuous commitment to the social
responsibility programme
contemplated in section 10
(g)
and to the
advancement, upliftment and economic empowerment of persons or
groups or categories of persons disadvantaged
by unfair
discrimination; and
(iv) no
political party in the Republic or political office-bearer has any
direct financial interest in the applicant
or a shareholder of the
applicant.
(3)
In considering whether to grant the licence, the Minister shall take
into account-
(a)
whether
any person who appears to the Minister to be likely to manage the
business or any part of the business
of the National Lottery under
the licence, is a fit and proper person to do so;
(b)
whether
any person for whose benefit that business is likely to be
conducted, is a fit and proper person to
benefit from it; and
(c)
whether
any person who is likely to manage the business or any part of the
business of the National Lottery
under the licence or a sports pool,
will do so-
(i) with
all due propriety and strictly in accordance with the Constitution,
this Act, all other applicable law
and the licence for the National
Lottery together with any agreement pertaining to the licence;
(ii) so
that the interests of every participant in the National Lottery and
sports pools are adequately protected;
and
(iii) subject
to subparagraphs (i) and (ii), so that the net proceeds of the
National Lottery and sports pools
are as large as possible.
(4)
A licence granted under this section shall include the conditions
contemplated in section 14.
(5)
The licence contemplated in subsection (1) may allow the licensee to
appoint another person to conduct certain lotteries of
the National
Lottery on behalf of the licensee only with the written approval of
the Minister: Provided that the board has made
a recommendation to
the Minister to allow such appointment if the person to be appointed
has satisfied the provisions of section
13 (2)
(b)
and
any other requirements or conditions as directed by the Minister.
[Sub-s.
(5) substituted by
s.
12
of
Act
32 of 2013
(wef 14 April 2015).]
(6)
In considering whether to grant the licence contemplated in
subsection (1), the Minister and the board shall not favour an
applicant solely because the applicant or a shareholder or partner
of that applicant is an organ of the State.
[2]
See for example Luna Meubelvervaardigers (Edms) Bpk v Makin and
Another 1977(4) SA 135(W); see also Dynamic Sisters Trading (Pty)
Limited and Another v Nedbank Limited (081473/2023) [2023] ZAGPPHC
709 (21 August 2023).
[3]
(2025)/039592) [2025] ZAGPPHC 517 (21 MAY 2025) (Wina Njalo).
[4]
Id par 23. See also Commissioner, South African Revenue Services v
Hawker Air Services (Pty) Ltd; Commissioner, South African
Revenue
Services v Hawker Aviation Partnership
[2006] ZASCA 51
;
2006 (4) SA 292
(SCA) [9].
[5]
[2022] 6 BLLR 487
(CC);
2022 (5) SA 18
(CC);
2022 (7) BCLR 787
(CC);
2022 JDR 0494 (CC).
[6]
Id par 19.
[7]
National Treasury And Others v Opposition To Urban Tolling Alliance
And Others
2012 (6) SA 223
(CC) (OUTA) par 44.
Economic
Freedom Fighters v Gordhan and others and a related matter, 2020 (6)
SA 325 (CC) par 40 (EFF v Gordhan).
[8]
Id par 47.
[9]
Setlogelo v Setlogelo
1914 AD 221
at 227.
[10]
Hydro Holdings (Edms) Bpk v Minister of Public Works
1977 2 SA 778
(T) at 787A-B, citing Eriksen Motors (Welkom) Ltd v Protea Motors,
Warrenton
1973 3 SA 685
(A) at 691C-G. See also Ladychin Investments
(Pty) Ltd v SANRAL
2001 3 SA 344
(N) at 353F/G.
[11]
Supra Note 7.
[12]
Id par 42.
[13]
South African National Roads Agency Ltd v Toll Collect Consortium
2013 (6) SA 356
(SCA) (12 September 2013) (Gidani II).
[14]
Supra.
[15]
Id par 24.
[16]
Id par 54.
[17]
Id par 67.
[18]
Id par 58.
[19]
Gidani II par 59,62 and 63.
[20]
Gidani II par 67 and 68.
[21]
Gidani III par 68.
[22]
Scalabrini Centre of Cape Town and Another v Minister of Home
Affairs and Others [2025] 3 All SA 827.
[23]
2013 (6) SA 421
(SCA) par 65.
[24]
1962 (1) SA 458
(A). See also Durban Add-Ventures Ltd v Premier,
Kwazulu-Natal (no 1)
2001 1 SA 384
(N).
[25]
ID at 476H.
[26]
2014 (1) SA 604
(CC) (ALLPAY 1).
[27]
Id par 28 - 30.
[28]
1948 (1) SA 1186
(W). See also Knox D’Arcy Ltd v Jamieson
1995
(2) SA 579
(W) at 592H - 593B.
[29]
Id at 189.
[30]
Outa par 65.
[31]
2014 (4) SA 371
(CC) (SA Informal Traders).
[32]
Outa par 50.
[33]
2002 (3) SA 265 (CC).
[34]
Id par 87.
[35]
2003 (2) SA 460 (SCA).
[36]
Cora Hoexter 'The Future of Judicial Review in South African
Administrative Law' (2000) 117
SALJ
484
at 501 - 2, citing A Cockrell '''Can You Paradigm?'' - Another
Perspective on the Public Law/Private Law Divide' 1993
Acta
Juridica
227.
[37]
Id par 21 - 22.
[38]
2014 JDR 2659 (GP).
[39]
Gidani I par 46.
[41]
[2015] ZAGPPHC.
[42]
Gidani (Pty) Ltd v Minister of Trade and Industry and Others
(65337/2015) [2016] ZAGPPHC 609 (13 May 2016).
[43]
Wina Njalo par 79.
sino noindex
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