STATEMENT BY HCI ON THE DEPLORABLE PROTEST OUTSIDE THE OFFICES OF eNCA ON THURSDAY 22 AUGUST 2019

HCI appreciates the frustration felt by those vested in the arbitration case between HCI, Ithuba and others.

The fact remains, however, that it is the unanimous view of all three arbitrators (all retired High Court Judges) that HCI was entirely within its rights to exercise its step in rights when it did and to advance various other financial claims against Ithuba and others.

The arbitrators expressly rejected all arguments put forward by Ithuba in defence which they found were completely without any merit. For anyone interested in the facts of the matter, the award is available on the HCI website.

The protest action, follows this decision, and is yet another effort made to resist and frustrate the lawful claims of HCI. The time has come for Ithuba, and the others, to do the right thing: respect the decision of the arbitrators and stop their wrongful and unlawful conduct.

It is a fact of the matter that:

• HCI put up the majority of the money needed to set up the business of Ithuba

• At the time not a single bank or funder was prepared to do so and take the risk in the face of an application by Gidani to set aside the licence awarded by the Minister in favour of Ithuba.

• Ithuba would unquestionably have lost that licence if HCI had not rescued it.

• HCI funded Ithuba in accordance with written agreements that regulated the returns it was to receive and the rights it was to enjoy.

• At the time that HCI stepped in and made funding available, Ithuba and everyone associated with it, were exceptionally appreciative of the role HCI had played

• There was and is -to this day- no dispute about the rights or the returns to which it is entitled.

It is evident that those who were roped into the protest action had no clue about the funding arrangements made with HCI. They were a rented crowed. It is disgraceful that the right of protest was abused in this manner.

It is clear to HCI that the protest action, laden with racial slurs, is just an effort to intimidate it. HCI remains committed to ensuring that the national lottery is run in a manner efficient and ethical by Ithuba and its service providers.

HCI calls on Ithuba and its consultants to do the right thing: comply with the award. The award is final and binding on all the parties and puts an end to all disputes. The time has come to get on with running of the national lottery to benefit good causes.

Issued by the Board of HCI