ITHUBA HOLDINGS NOT IMPLICATED IN SOUTH AFRICAN LOTTERY R300M FRAUD INVESTIGATION
Gaborone: ITHUBA Botswana notes with concern an article in The Patriot on dated from 06-13 March 2022 titled ‘Ithuba Wins; Growmine Sues’ that has incorrect and misleading facts alleging that the parent company ITHUBA Holdings is implicated in an ongoing investigation in South Africa by the Special Investigations Unit (SIU).
According to ITHUBA Botswana, in South Africa at present, the National Lotteries Commission (NLC), is currently being investigated by the Special Investigations Unit (SIU). The National Lotteries Commission is mandated to regulate the South African National Lottery including society lotteries and promotional competitions to raise funds for good causes, as well as the distribution of the funds to beneficiaries. An interim update on the status of the investigations was shared during the past week by the SIU to the department of trade and industry portfolio committee, in Parliament.
ITHUBA Holdings, however, has the licence to operate the Third National Lottery since 2015 and has the mandate as a Special Purpose Vehicle to manage and operate the sale of lottery tickets and for every ticket sale, a percentage of the funds is then paid over to the NLC for distribution to its beneficiaries. It is thus the primary role and duty of the NLC to distribute the funds accordingly and as stipulated in the Lotteries Act 57 of 1997, and as amended.
The SIU report is available in the public domain and its contents allege that the NLC is currently being investigated for corruption estimated at R300 million. It is imperative to note that ITHUBA Holdings and NLC are two different organizations with independent Board Members, Management and distinct roles and mandates. ITHUBA Holdings is thus not implicated in any way in the pending investigations.
“We wish to reassure our stakeholders and the general public that ITHUBA Holdings prides itself on the principles of transparency, integrity and good corporate governance and has successfully been operating the South African National Lottery for the past 7 years adhering to all Licence and Regulatory requirements, said Todd Mangadi, Chairman of ITHUBA Botswana. .
Furthermore, following the Minister’s recent decision, ITHUBA Botswana accepts and welcomes the decision, and looks forward to commence negotiations with the Gambling Authority shortly. ITHUBA Botswana commits to bring Batswana life changing jackpots, job creation, maximum contributions to good causes and creating local citizen empowerment opportunities through unimaginable economic activity in Botswana by way of the various ecosystems that stand to benefit such as local suppliers/ contractors (SMEs), some of the impact and growth to industries such as printing of consumables, marketing and communications, telecommunications and audit services to name but a few.
