Deputy president Paul Mashatile has admitted that Durban businessman Moses Tembe – who is part of a consortium that was awarded the lucrative lotto licence contract – is his friend, but said he did not know Tembe was doing business with his sister-in-law.
In an interview with IN THE KNOW with Sowetan, a new podcast to be published on Thursday, Mashatile dismissed suggestions of political interference in the awarding of the contract – saying only trade and industry minister Parks Tau had the powers to choose the winning bidder.
Mashatile argued that Bellamont Gaming – a company owned by Tembe and Khumo Bogatsu, sister to Mashatile's wife – was not doing business with the presidency. He said it was unfair to question why his relatives were conducting business.
“There are so many people who know me in this country – family, children, cousins and friends. Where must they do business – in Zimbabwe?” Mashatile asked during an interview with Sowetan on Tuesday.
His remarks come after amaBhungane (an investigative journalism organisation focusing primarily on exposing political corruption in SA) reported that Sizekhaya Holdings, which landed the lucrative licence deal to operate the country's lottery for eight years, had links with the deputy president.
Bellamont Gaming has shares in Sizekhaya.
AmaBhungane reported that Bellamont Gaming was registered in December 2023, just nine months after Mashatile married Bogatsu’s sister. Together with their consortium partners, they established Sizekhaya Holdings shortly before the February 2024 bidding deadline for the lottery licence.
Tau in May picked Sizekhaya as the preferred bidder.
Sizekhaya was competing with seven other bidders, including long-time operator Ithuba. Mashatile defended Bogatsu's right to conduct business.
“My sister-in-law is a South African who has a right to do business," Mashatile said. “This issue of the lottery is something that is far away from us [presidency]. The minister of trade and industry is responsible, not me.
“I think it is unfair to put this as an issue. So it means every South African who knows me can't do business just because they know me. I do not think it is correct.”
If I was responsible for the lotto, I am the one taking the decision, I would say 'yes', there is conflict because my sister-in-law is part of this but I am not responsible for that. It is very far from me.
— Deputy president Paul Mashatile
Mashatile admitted that Tembe was his friend. He said for anyone who believed there was a conflict of interest then they should approach the courts. “Maybe the court will see there is real conflict. I don't see it because I am not involved in that.
“If I was responsible for the lotto, I am the one taking the decision, I would say 'yes', there is conflict because my sister-in-law is part of this but I am not responsible for that. It is very far from me.”
When asked why there were such allegations around him, Mashatile said: “There is no way of knowing why people are after me. I do my work, I have been in government close to 30 years.”
He said in his years running different departments in Gauteng and the national government, the Auditor-General never flagged those departments as problematic. “So, I don't know where these allegations come from. I don't know what their motive is.”
Mashatile was also asked about the controversies surrounding his international travel and the costs involved. Since taking office in July last year, Mashatile’s international trips have cost close to R8m.
A parliamentary response showed that he had visited countries including the UK, Ireland, Botswana, Zimbabwe, and Japan – with the Japan trip alone costing R2.3m.
Responding to the concerns, Mashatile said: “The president and deputy president don't get involved in logistics, there is a team in the presidency that sits and looks at our trips and it's a team that has the CFO in it and they already have a framework on how they deal with that.
“For instance, when the president and deputy president travel, they have to find a presidential suit in a hotel, particularly because we are working.
“You will find that the ultimate venue that they decide on might not be the cheapest. It might be the one that is closer to where the meetings are and one that has all the facilities. They then take a decision that we will use this one but always conscious that we should not be extravagant.
“Some of these cities we go to are very expensive but we do take care of making sure that we are not extravagant.”
Mashatile said he had flown commercial flights given the costs associated with chartering private jets.
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