Former South African tech CEO linked to controversial Lotto contract

Former Adapt IT CEO Sbu Shabalala has been linked to the controversial new Lotto contract, which has been awarded to Sizekhaya.
The Lotto contract is highly lucrative, with the outgoing operator, Ithuba Holdings, reporting a turnover of R7.28 billion in 2024.
In May 2025, Trade, Industry, and Competition Minister Parks Tau appointed Sizekhaya Holdings as the fourth national lottery and sports pools operator, effective 1 June 2026.
The issue has been contentious from the start, and Tau said this matter has already become the subject of litigation and a judgment of the High Court.
However, it is not only legal action which tainted the appointment. amaBhungane reported that Sizekhaya Holdings has links to Deputy President Paul Mashatile.
The investigative publication stated that Sizekhaya’s shareholders include Bellamont Gaming, a company co-owned and co-directed by Khumo Bogatsu and Moses Tembe.
Bogatsu is Mashatile’s sister-in-law, and Tembe is the KwaZulu-Natal businessman who chairs Sizekhaya, which amaBhungane said appears to be close to Mashatile.
In a follow-up report, amaBhungane said Shabalala, who is engaged to Khumo Bogatsu, played a key role in connecting all the players linked to the contract.
amaBhungane published numerous photos which showed Shabalala with key role players in the new Lotto contract.
The publication requested details from Shabalala about the issue, but he did not respond to this communication.
amaBhungane said Tembe dismissed questions about his relationships as an “invasion of privacy and humiliating”.
Mashatile has dismissed allegations of political interference in the awarding of the national lottery licence to Sizekhaya Holdings.
He argued that his family should be allowed to do business in South Africa as long as he is not involved in the company.
Tau told Parliament that all the allegations of conflicts of interest and potential political interference will be investigated.
Mondli Gungubele, Deputy Minister of Communications and a National Working and Executive Committee Member of the ANC, hit back at Mashatile.
“It is the moral obligation of public figures to clarify to society when their friends or relatives are doing business with the state, not the obligation of the public to explain where they should do it,” he said.
Sbu Shabalala as Adapt IT CEO

Shabalala often made headlines during his tenure as Adapt IT chief executive. This includes controversial issues.
In 2009, Adapt IT was under scrutiny for its R6.5 million price tag for developing the Durban 2010 website ahead of the Soccer World Cup.
Democratic Alliance (DA) said “using the specifications provided by the City Council, the website could not possibly have cost more than R250,000”.
Shabalala explained that the cost included aspects like software licensing, hosting, and server management, which are not strictly part of the Adapt IT budget.
Another contentious issue was related to Adapt IT’s head office, which is owned by Mshengu Property Holdings, of which Shabalala is the sole director.
Having a CEO of a company that owns or partly owns the property the company uses as its campus raised questions about a potential conflict of interest.
Higher rent, for example, is good news for the CEO, but bad news for the company paying the monthly bills.
Adapt IT said there was nothing untoward regarding the deal. It explained that Shabalala recused himself from the decision regarding the property to avoid a conflict of interest.
In 2021, Shabalala made headlines after accusations that he ordered heavily armed men to beat up the partner of his estranged wife, Neo Shabalala.
He allegedly attempted to force his former wife into signing an agreement related to a legal dispute over financial matters. She reportedly claimed ownership of part of his assets, which she valued at over R133 million.
Shabalala said the armed assault allegations against him are without merit, describing it as a “cold-hearted campaign” which must be condemned.
In August 2021, Shabalala resigned as Adapt IT chief executive. “The board has duly accepted his resignation and wishes him well in his future endeavours,” Adapt IT said.
Statement from Moses Tembe

We have noted with utter dismay the growing and unfounded speculation in various media platforms that Sizekhaya was awarded the fourth national lottery licence because of political patronage and professional connections.
We have indicated previously that Sizekhaya won the right to operate the fourth national lottery licence because of the strength of our bid; the deep knowledge of gaming that we bring to the table; our pledge to propel the lottery to new heights by generating more money for the government, for good causes and for players; and our commitment to handing over the IP to the government to run the lottery themselves if they so desire.
We understand that these questions are in part being asked because the lottery is not owned by the government, it will not be owned by Sizekhaya. Instead, it is owned by the South African public.
We have deemed it critical to address the baseless allegations and unfounded speculation that has grown louder in the past few weeks.
Let me be absolutely clear. Sizekhaya is not guilty of any impropriety. Neither the Deputy President nor any other political entity or individual has a financial interest — direct or indirect — in our bid.
As said in Parliament on Tuesday, the Deputy President had no influence in the adjudication committee and the National Lotteries Board.
Neither Bellamont Gaming nor Sizekhaya ever discussed our bid with the Deputy President.
However, we are of the view that it is in the public interest to state that Bellamont Gaming, in which Advocate Khumo Bogatsu and I are directors, hold one of the smallest stakes, totalling seven per cent, in Sizekhaya.
Advocate Bogatsu owns two per cent, and Bellamont Investments owns five per cent.
I invited Advocate Bogatsu, on the strength of her qualifications and much-needed experience required to navigate the legal complexities of the industry, to join me in taking a stake in Sizekhaya.
This led to the formation of Bellamont Gaming, as a subsidiary of Bellamont Investments, which has been in business for years.
The narrative that Mr Sandile Zungu and I are controlling shareholders is unfounded. Sizekhaya is a very diversified consortium. As a chairperson of the board, I happen to be the face of the company.
Despite her relationship with the Deputy President through marriage, Advocate Bogatsu is an ordinary South African who is fully entitled to pursue any legitimate commercial interest.
The checks and balances in place at the NLC and the country ensured that there was no impropriety.
As a former President of the Durban Chamber of Commerce and current Chairman of the KZN Growth Coalition, I have met almost all leaders across the political spectrum in their homes and in my own.
Not one of these political players and decision-makers – be it MECs or Ministers – would ever attest to my discussing personal business interests.
Regarding the allegations that I accompanied the Deputy President to France, it was in my capacity as a business leader that I was invited to France by the South African ambassador to France, Mr Nathi Mthethwa.
Mr Sandile Zungu — along with scores of other South African businesspeople including shareholders of other competing lottery bidders — also attended at the invitation of Mr Mthethwa.
Sizekhaya welcomes scrutiny intended to shed light on who we are and what we bring to the table.
However, we condemn the baseless accusations, malicious rumour-mongering, mudslinging, and personal attacks on shareholders and directors that have increased in volume since we were announced as the winners.
Sizekhaya has always abided by the law, as we have submitted all necessary documentation and made all required declarations to the National Lotteries Commission.
We have ensured, as per the Lotteries Act, that no political party or political office-bearer holds a direct or indirect financial interest in Sizekhaya.
We, therefore, welcome the Minister of Trade, Industry and Competition, Parks Tau’s commitment to investigate any perceived conflicts, as Sizekhaya has done absolutely nothing wrong.