CAPE TOWN – Hosken Consolidated Investment’s (HCI) legal action against Ithuba was an attempt to take over the black-owned R8 billion-a-year lottery operator without following regulatory processes, a statement from Ithuba alleges.
The arguments on the case were due to be concluded today in the South Gauteng High Court, a spokesperson for Ithuba told Business Report yesterday. Ithuba won a competitive tender to run the national lottery from June 2015 to May 2023.
HCI, led by former trade unionist Johnny Copelyn, had loaned Zamani Marketing and Management Consultant and the Ithuba special purpose vehicle, led by founder and chief executive Charmaine Mabuza, R325 million, repayable over five years, to start the lottery.
The interest on the loan (34 percent a year) will be about R441m on April 29, next year.
HCI has disputed that some of the loan covenants were complied with. Ithuba claims HCI had entered the gambling industry on previous occasions by taking up the stakes of black empowerment shareholders, and was now attempting to do the same with the lottery operator.