high court sets aside minister’s decision on lotto operator
7 March 2007


THE Pretoria High Court yesterday set aside Trade and Industry Minister Mandisi Mpahlwa’s decision last year to award the new lottery operating licence to the Gidani consortium, and ordered him to review the process he followed.

Uthingo instituted review proceedings last month against the minister and the National Lottery Board because it was dissatisfied with the way Mpahlwa decided to appoint Gidani.

Judge Willie Seriti found that the process followed by the board was flawed. The board had failed to investigate the shareholding in Gidani and Uthingo.

Seriti said that information was material for Mpahlwa to apply his mind properly under the Lotteries Act.

The judge found that the board’s failure to obtain information about the shareholders had resulted in Uthingo being recommended as the second preferred bidder, despite Education Minister Naledi Pandor having shares in a company with a stake in Uthingo.

The Lotteries Act prohibits political office bearers from holding financial interests in the successful consortium.

For the full report, go to www.businessday.co.za

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Ernest Mabuza