These attacks coincide with serious allegations against Ithuba executives, accusing them of manipulating Lotto numbers for personal gain. The situation unfolds amidst a fierce competition, with over 18 companies vying for the coveted fourth license to operate the National Lottery in South Africa, following the Department of Trade, Industry & Competition's call for proposals in August.
As the bidding process intensifies, Ithuba has noted a surge in cyberattacks, drawing criticism on social media platforms. The operator observed unusual traffic on its website in recent months, prompting CEO Charmaine Mabuza to disclose ongoing attempts to breach their systems and expose Lottery winners.
Mabuza revealed that Ithuba actively monitors its systems daily and has previously taken legal action to safeguard player information. In September 2022, the operator secured an interdict against an individual who hacked its website, accessing the names of up to 20 Lotto participants. The court order mandated the deletion or destruction of the information and prohibited the unauthorized use, publication, distribution, or copying of the data.
Acknowledging the heightened vulnerability during the bidding period, Mabuza emphasized the need for heightened security measures. However, critics have seized upon the hacking incident to allege insecurity in Ithuba's IT systems.
Adding complexity to the narrative, accusations have surfaced, suggesting that Mabuza manipulated Lotto draws to secure substantial jackpots for herself and her family. Some even attribute the cessation of Ithuba's live TV broadcasts to these allegations. Mabuza clarified that the decision to end live broadcasts coincided with the company's transition to random number generator (RNG) technology.
This isn't the first time the National Lottery has faced scrutiny. In December 2020, revelations emerged about a mystery company, Velanor, owned by a former actress and talk show host, receiving over R7 million from the Lottery. Investigations into Velanor's activities proved inconclusive, as the company lacks an online presence, and attempts to visit its premises were thwarted.
Ithuba, holding the National Lottery operating license since 2015, faces a challenging battle for control. In October 2019, a legal dispute erupted with Hosken Consolidated Investments (HCI) over the early repayment of a R341-million loan. Despite HCI's demands for management oversight of Lotto operations, the court determined that Ithuba had no obligation to expedite loan repayment. The legal tussle also included requests to reduce payments to Zamani, Ithuba's management consultants, from 4.67% to 3% of sales.
The unfolding narrative underscores the complex interplay of cybersecurity threats, corporate competition, legal battles, and public allegations, all shaping the future of the National Lottery in South Africa.
