Litigation: Gidani’s bid to halt rival’s lotto takeover fails
Ithuba Holdings can go ahead with its preparations to take over the National Lottery at the end of May next year, after an urgent, interim, court bid by the current operator Gidani failed yesterday, says a Business Day report. Gauteng High Court (Pretoria) Judge Neil Tuchten’s judgment averts the danger of a three-month delay to the operation of the lottery and an irrecoverable loss of R500m per month. But the judgment deals only with the interim situation: Gidani may still challenge the awarding of the licence. The report notes Gidani challenged the choice by Minister of Trade and Industry Rob Davies of Ithuba as the successful applicant on the grounds that it was irrational and arbitrary. It also went urgently to court to interdict Ithuba from ‘taking any steps’ to implement the licence, seeking to prevent the ‘great deal of preparatory work’ that must be done – ‘at great cost’ – in order to take over the running of the National Lottery, said Tuchten. The report adds looking at the requirements for an interim interdict, Tuchten said Gidani’s prospects of success in persuading a court that the Minister’s decision was irrational were ‘at best, weak’, notes the report. Ithuba had scored higher on both a technical and financial evaluation by the National Lotteries Board’s adjudication committee, which advises the Minister. But a majority of the committee nonetheless recommended Gidani – based on an assessment of risk factors. However, Tuchten said the assessment of risk was not an exact science.
To read more about the matter click the link below-
Full Business Day report (subscription needed)