Lottery case: Davies acted properly, court hears

FILE: Minister of Trade and Industry Rob Davies addressing delegates during the Hisense Export conference with African partners.The conference is held at lagoon beach. Picture Cindy waxa.Reporter Joe/Argus

FILE: Minister of Trade and Industry Rob Davies addressing delegates during the Hisense Export conference with African partners.The conference is held at lagoon beach. Picture Cindy waxa.Reporter Joe/Argus

Published Feb 18, 2016

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Pretoria - Trade and Industry Minister Rob Davies properly considered whether or not BEE start-up company Ithuba was fit and proper to operate the national lottery, before he again awarded it the operating licence.

This was the argument of Ngwako Maenetje SC, who on behalf of the minister asked the high court in Pretoria to turn down a review application by rival company and former licence holder Gidani.

The applicant is asking Judge Billy Mothle to review and set aside the decision by Davies to award Ithuba the lottery licence.

This is the second time Gidani had turned to court asking that the decision to award the licence to Ithuba be overturned.

Last July Judge Neil Tuchten granted the application and ruled that the licence agreement with Ithuba was invalid. He ordered the minister to reconsider the tender. A month later, the minister reissued the operator’s licence to Ithuba.

Gidani, which held the licence until Ithuba took over, was once again aggrieved by this and said the minister’s decision was irrational.

But Maenetje yesterday argued that the minister fully applied his mind when he made the decision. The minister considered his option after Judge Tuchten’s judgment and elected to recommence negotiations with Ithuba as the preferred licence holder.

Throughout the process, Davies was represented by officials from his department and financial advisers. The minister ensured that Ithuba had the financial resources to operate the lottery, before he reissued the licence to it last August, the court was told.

Gidani earlier argued that the minister was required by the Lotteries Act to award the licence to the bidder which offered the highest contributions to the National Lottery Distribution Trust Fund (NLDTF) - through which charities were funded.

Gidani said it was in a position to contribute more than Ithuba. But Maenetje argued that the act did not stipulate this.

He said the Lotteries Act in fact gave the minister the discretion to negotiate with whomever he saw fit regarding the awarding of the licence.

“In any event, the minister properly exercised his discretion to negotiate with Ithuba and he thus did not act unlawfully,” the advocate said.

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