Pretoria High Court: Minister's Lottery Licence Award Set Aside

On Monday, the Pretoria High Court, through Judge Norman Davis, ordered Minister of Trade, Industry and Competition Parks Tau to reconsider bids for the fourth national lottery licence, which he had awarded to Sizekhaya Holdings in May 2025, specifically directing him to exclude reliance on a ministerial committee report. The court reviewed and set aside the minister's decision and declared the licence agreement invalid, but pragmatically suspended the declaration of invalidity for 12 months, allowing Sizekhaya to continue operating while the minister re-evaluates the bids within six months and concludes a new agreement within a further six months. This ruling stemmed from challenges brought by unsuccessful bidders, Ithuba Lottery and Ringeta Consortium, and a constitutional challenge by the Economic Freedom Fighters (EFF) concerning the Lotteries Act.

This ruling carries significant legal weight, reinforcing the fundamental principles of administrative justice and transparency in public procurement and licensing processes in South Africa. It underscores that ministerial discretion, while inherent in such roles, is not absolute and must be exercised lawfully, reasonably, and procedurally fairly, free from extraneous or impermissible considerations. The court's decision to suspend the invalidity order demonstrates a balanced approach, aiming to rectify a legal irregularity without causing immediate disruption to a public service, thereby protecting both the integrity of the administrative process and public interest.

The legal context for this matter is firmly rooted in South African administrative law, particularly the Promotion of Administrative Justice Act 3 of 2000 (PAJA), which gives effect to Section 33 of the Constitution guaranteeing the right to lawful, reasonable, and procedurally fair administrative action. Judge Davis's finding that reliance on the ministerial committee report was