TRANSFORMATION & CHALLENGES FACING THE HORSERACING INDUSTRY

PRESENTATION TO THE PMG: SPORT & RECREATION

*(Edited and abridged)

TRANSFORMATION & CHALLENGES
WITHIN THE HORSERACING INDUSTRY


OVERVIEW OF HORSERACING

(1) INTERNATIONAL SCENE
Horseracing is a major economic role-player in numerous countries in the west and east, such as USA, Britain, France, Ireland, Germany, Dubai (Arab Emirates), Hong Kong, India, Macau, Australia, New Zealand, etc.

Amongst the world’s leading owners / breeders are the Makhtoum family of Dubai, the Aga Khan, the Queen, Coolmore Stud in USA, etc. who own some of the most expensive horse-flesh in the world, with their own stud farms and private race tracks.

(2) HORSERACING IN AFRICA
The only thoroughbred horseracing is found in Kenya, Zimbabwe and South Africa. The overall majority of owners and trainers are whites (mostly former British colonialists)

(3) SOUTH AFRICA: BACKGROUND
Horseracing was introduced into this country by the British over 200 years ago. From the outset, it remained the preserve of whites only (as in the other African countries to the north).

The first African black to get his colours to own and race horses was Mr Richard Maponya, who had to wait almost 6 years before being granted permission, around 1969 (the colours he chose for his horses to run in embodied those of the African National Congress….then banned!). For the next five-odd years, he could not enter the whites only Owners & Trainers Section, and had to sit on the hard concrete floor of the “Non-White’ section (Silver Ring) to watch his horses run. Eventually, Mr Maponya (at one time, the biggest racehorse owner in the country) quit .

Up until 1969, blacks were trainers in the old Free State. Most notable amongst them was a trainer called Champion and jockey Ismail Temenya. They were allowed to race / ride horses on Kimberley and the Goldfields tracks. They could not enter horses to run under their name at Newmarket, Germiston and Turffontein race tracks in the old Transvaal. An owner/trainer from Soweto (Mr Khumalo?) used to cart his horses from Goldfields to Kimberley in his own truck.

There were separate entrances for black jockeys and trainers at Kimberley. The track and its running width can still be recognised at Goldfields.

From 1969, blacks were barred from owning/training/riding horses in terms of the Separate Amenities and Group Areas Acts. Nobody is bothered about this aspect of horseracing’s history.

Today, 17 years into our new South Africa, there is an embarrassing absence of blacks (especially Africans) from the horseracing scene as owners and trainers, whist the majority of punters are blacks. This point is not necessarily racist when one considers that the base of particpation within the industry has to be broadened to ensure its viability and sustainability.

The various, historical constraints placed on blacks have resulted in our present situation. There are more foreigner white trainers than local blacks (in fact, there isn’t even one African trainer country-wide!); the industry does not reflect the demographics of our country in any way. Under the present dispensation (corporatised entities in Phumelela and Gold Circle Racing), there is no hope whatsoever of blacks ever playing a meaningful role (let alone in terms of demographics) in this industry.

This is the very crux of the approach to Government to intervene now, and facilitate the meaningful transformation of the entire equine industry so that posterity can also participate and excel in the various sectors as both a sport and a form of entertainment.

Another distasteful development has been on the pretext of transformation, where not only decent people lost their jobs, but there has been this covert manipulation where 'black' means different things in the various Provinces to suit the local agenda.

Example: KZN, Indians are deemed ‘black’; and in WC, Coloureds/Khoisan; whilst, in the rest of the country, it’s Africans.

In this way, they are perpetuating 'apartheid' mentality by styming & demonising genuine, committed, concerned people from across the colour spectrum, who love the game as a sport...........to come together!

The acid test is: did our struggle heroes sacrifice their lives for such a charade?


1. INTRODUCTION

My presentation will be seen as radical by some as it comes from a former activist, first-hand experience and no mincing of words.

17 years after our new democracy, it is a major indictment on our leaders, the ANC and Government that there is common acceptance that there is no need for transformation, and that, there have been no challenges within the horseracing industry!

We have been bombarded with calls for nationalisation of the mines, etc., where the assets are deemed to belong to the country. Such calls are in direct conflict with what was done within the horseracing industry, where the assets belonged to the people.

We have also heard former comrades (now capitalists) and socialists (now socialites) saying ‘I did not join the struggle to be poor!’, ‘It’s not a crime to be rich!’, etc. In effect, we have abandoned the mass.

I trust that, at the end of my presentation, we all will have answers; knowing where we come from, and having a clear idea of where we are going to and what’s to be done to take this sport of horseracing to the people, where it rightfully belongs…….under the direction of the Dept of Sports & Recreation!

2. THE BARRIERS AND COSTS THAT PROHIBIT INCLUSION
OF BLACKS WITHIN THE HORSERACING INDUSTRY

STRUCTURES
The various structures of the horseracing industry are set up in a confusing web of operator, control and regulation (cross-pollination being starkly evident!) as against its components, such as owners, trainers, grooms, punters, jockeys, breeders, etc. The intricate symbiotic relationship between these two is such that there is no responsible body/organisation which should be answerable for either the transformation of the industry or the challenges facing it.

As such, there are practical and hidden constraints that are orchestrated to intentionally restrict the inclusion of blacks within the industry. Herein, I respectfully refer you to Smiley Moosa’s presentation and his story of how he has been shunted, harassed and marginalised as a black commentator.

Let’s identify some of them and their roles/functions:

1. NATIONAL HORSERACING AUTHORITY (NHRA)

(i) This is the controlling and regulating body for the industry
(ii) Besides protecting the integrity of the ‘sport’ via disciplinary action, it issues colours and licences to potential owners, trainers, breeders, jockeys, spelling farms, etc.
(iii) It receives its income from the fees it charges and receives additional funds from the operator (Phumelela/Racing Association/Gold Circle)
(iv) Its officials for national and the regions are elected by the members (who can be owners, trainers, etc).

To own and race horses, one has to apply for colours. For an individual, the fee is R2 400.00 whilst for a company, trust, syndicate or CC- R5 855.00.
This is the first barrier for entry; its high cost.


My view (endorsed by a former DTI Director Mr A Sooklal), that this should be drastically reduced to permit more people to participate within the industry, specifically blacks..

Currently, we have-
(i) Not a single African trainer country-wide. In total, 2 Indians (in KZN) and 1 Coloured/Indian (W Cape) out of 400-odd trainers;
(ii) Less than 5% of owners are blacks (of which not even 1% is African);
(iii) Amongst the officials, there is a preponderance of whites….and that is not going to change for years to come! For instance, the CEO has been and is a Caucasian.

Additionally, not one of these wealthy white owners (at least 3 of whom over 300 horses each), has ever supported a black trainer, least of all B Bulana, who had to leave the industry after being snuffed out and having served his purpose as an example of BEE!

(iv) Amongst the officials, there is a preponderance of whites…..and that is not going to change for years to come! For instance, the CEO has always been and is a white.


Herein, I requested the following information from the NHRA-

1.
What are the relevant racial compositions of your current Chairman and CEO?

2.
Has there ever been a black occupying these positions?

3.
What is the racial composition (numbers-wise) of your national and all the regional offices (with positions)?



Response received-



Dear Mr Manjoo
Your e-mail of Sunday, 28 August 2011, refers.
The information which you require is easily obtainable from the latest (2010) Annual Report of The National Horseracing Authority which is published on our website at www.horseracingauthority.co.za .
The current chairperson is Mr J M Witts-Hewinson and I am the Chief Executive. We have previously had Dr L Konar as the Chairperson.
The current racial composition of our staff and our position on transformation are set out on pages 13, 14 and 34 of the 2010 Annual Report.

Kind regards


Rob de Kock
Chief Executive

Tel. +27 11 683 9283
Fax +27 11 434 1636
E-mail rdk@nhra.co.za
Web www.nhra.co.za




– COMMENT

1. The NHRA is the only body that responded, for which it has to be credited. Also, in my past correspondences, there have always been responses, though not necessarily agreeable;

2. The CEO of the NHRA has always been a white, and Mr de Kock for many moons! I must note also that I do have a high regard for him as he is always available to engage with respect and see other viewpoints. He supported and inter-acted with me on issues such as getting the first black groom licensed as a jockey (Abie Fourie) and Mr Bhekinkosi Bulana his trainer’s licence as the first African.

3. A Mr D Mpanza was supposed to have been an understudy to Mr de Kock about 6-7 years ago; he is no longer at the NHRA.

4. The current Chairperson is white (from this year) whilst the predecessor was Dr Len Konar, an Indian;

5. As such, I ask only one question ‘What has this Indian (black) done for transformation within the NHRA?’

7. Frankly, we do not want to know of the kow-towing, ‘know all’ Indians (and other blacks) within the current set-up of the industry; where are they and what are they doing / have done for meaningful transformation?





2. GOLD CIRCLE RACING
Whilst this is deemed to be a Section 21 Company.

Below, I have copied the various officials of the regions which tells its own story about non-Caucasion representation:


KZN Chapter Gold Circle Board Western Cape Chapter
KZN REGIONAL BOARD DIRECTORS DIRECTORS WC REGIONAL BOARD DIRECTORS
*T N Pillay (Moga)(Chairperson)
W B W G Kobusch (Vice Chairperson)
N Butcher
P V Lafferty
D A Latimer
M J R Mauvis
*R Moodley
*L Nunan (Babu)
G Petzer
A J Rivalland
G A R Sturlese
*M Tembe M J R Mauvis (Chairperson)
N Butcher (Vice Chairperson)
P De Beyer
Ms L A Futeran
G T Hawkins (Chief Operating Officer)
P L Loker (Commercial Director)
P Mnganga
*R Moodley
A J Rivalland
G A R Sturlese V L Thurling (Chairperson)
R B Dunn (Vice Chairperson)
J R Bloomberg
E Braun
I Cronje
P De Beyer
T F Fowler
Ms L A Futeran
Mrs L King
G Knowles
V H Marshall
Ms P L V Mickleburgh
*A A Mohamed
J Ramsden
*Indicates black
The following is copy of what I requested from them:

The Chairman/CEO
Gold Circle Racing

Dear Sir/Madam,

RE : TRANSFORMATION OF HORSERACING

I shall appreciate your co-operation in furnishing the following info asap (which is required for presentation to Parliament):

1.
What race is the current CEO?

Additionally, has there ever been a black CEO of Gold Circle?

Mr G Hawkins has been appointed CEO of Gold Circle (having left Gauteng as a commentator, manager, marketer, etc). Was this position advertised?

Why was a black not considered?

2.
I note that the article on Transformation has been removed. Herein, there was ample mileage given to Gold Circle’s empowerment / transformation initiatives (with BEE verification) with having set up and paraded Mr Bhekinkosi Bulana as the first black African trainer.

Mr Bulana has now ceased to train as Gold Circle allegedly unilaterally withdrew its support / funding.

3.
How many other black African trainers have been supported / promoted by Gold Circle?

4.
We understand that you have a Gold Circle Transformation Fund. How broad-based is this and what is its function?

Looking forward to your prompt responses.

Thanking you, With regards

Hanif Manjoo
BopaNet - Chairman

Acknowledgement referred to Mr Michel Nairac; but no response.



3. PHUMELELA GAMING & LEISURE
This is the entity that former MEC, Finance Jabu Molekethi, unilaterally corporatized.

A request for information has not been acknowledged to date as ff:

The Chairman/CEO
Phumelela


Dear Sir/Madam,

RE : EMPOWERMENT- EMPLOYMENT EQUITY & BEE INITIATIVES

I SHALL APPRECAITE IF YOU COULD KINDLY SUPPLY ME WITH THE FOLLOWING INFO REGARDING THE ABOVE WHICH IS ON YOUR WEBSITE ASAP:

1.
As for Employment Equity, what percentage of the components are Indian, Coloured and African amongst the various levels of management;

2.
As for your BEE initiatives, what is the pro-rata shareholding of Indians/Coloureds and Africans within the companies established (Hospitality, Maintenance, IT, etc)?

Herein, to whom does the balance of the share-holding (presumably whites) belong (name/s of the directors) and their positions in Phumelela, Racing Association, NHRA, etc?

3.
As for the shareholding (BEE), is this restricted to a handful or spreads across a broad base?

If so, how many?

Was the offer to participate advertised to invite other members of the public from the previously disadvantaged groups?


Your prompt response will be appreciated.

Thanking you,

With regards

Hanif Manjoo
BopaNet – Chairman

NB: The info is required for a presentation to Parliament.

No acknowledgement/response!



4. RACING ASSOCIATION (RA)
Committee
Finance: Industry Liason:
Mr. L Wainstein Mr. L. Wainstein
Mr. C Gerber Mr. P. Miller
Mr. M Currie Mr. T. Raath
Mr. A. O Connor

Trainer Liason: Jockey’s Remuneration:
Mr. L. Wainstein Mr. L. Wainstein
Mr. T. Raath
Marketing:
Mr. L. Wainstein Import / Export:
Mr. T. Raath (Racing South Africa) Mr. C. Gerber
*Mr. P. Naidoo
Mr. A. O Connor TBA Liaison:
Mr. C. Gerber
Handicapping Steering:
Mr. P. Miller Programming: TBC

RA Staff
Merle Parker, Penny Broodryk, and Angie Basel serve on the Marketing & Member's Communication Committees.
Larry Wainstein : Chairman E-Mail: info@racingassociation.co.za
Nicholas Nofal : Operations Manager E-Mail: nicholas@racingassociation.co.za
*Vanessa Moodley : Office Administrator E-Mail: vanessa@racingassociation.co.za
Merle Parker : Assistant to C.E.O E-Mail: merle@racingassociation.co.za
Natalie Turner : Financial Accountant E-Mail: Natalie@racingassociaion.co.za
Cynthia Elsholz : Bookkeeper E-mail: cynthia@racingassociation.co.za
Penny Broodryk : Member Relations Officer E-Mail : penny@racingassociation.co.za
Angie Basel : Events Co-ordinator E-Mail: angie@racingassociation.co.za
*Maggie Sithole : Office Assistant
Office number: 011 683 3220
Office Fax number : 011 683 3222
Members from this body made a presentation to you. Examining the composition of officials above, there are 3 blacks only (Peter Naidoo, Vanessa Moodley and Maggie Sithole).

Is this transformation that they referred to?




5. THOROUGHBRED BREEDERS ASSOCIATION (TBA)

Information requested from this body:

The Chairman/CEO
TBA

Dear Sir/Madam,

RE : TRANSFORMATION WITHIN THE TBA

Kindly advise us with the following info which we are preparing for presentation to Parliament:

1.
What are the races of your current Chairman &CEO/General Manager?

2.
Have you ever had a black in any of the above positions?

3.
How many of your members are black percentage-wise and in total numbers?

4.
Do you support and have a framework for meaningful transformation of the TBA?

Your prompt responses will be appreciated.

Thanking you, With regards

Hanif Manjoo
BopaNet-Chairman

Nothing again!



OBSERVATIONS:
The attitude of not even acknowledging correspondence (unsavoury/awkward) by the industry’s sectors is shocking….and predictably consistent with their arrogant attitude!

There is also the concern of conflicts of interests e.g., an individual can sit on 2 or more boards of the above bodies….. and such has already been done!

This alone reinforces not just the justification for Government intervention, but that the Dept of Sports & Recreation takes immediate control over it!




(3) SOLUTION & WAY FORWARD

THE EQUINE INDUSTRY
The equine industry, in terms of this presentation, involves, inter alia-

1. The horseracing industry, with all its trappings of race tracks (all-weather and grass), TV & radio relays, owners, trainers, jockeys, breeders, grooms, etc. including hurdle (steeple chase / hunt) racing and trotting races;
2. Polo horses;
3. Show jumping & Dressage, etc;
4. Includes what is known as ‘Bush Racing’.

ESTABLISH A NATIONAL HORSERACING BOARD- DEPT OF SPORTS & RECERATION
In the total absence of transformation within the horseracing (which is presented as a sport in one breath, and, a business in the next!), our proposal is as follows:

(1) The Hon. Minister of Sports and Recreation (with the endorsement of the PMG), bring horseracing under its direct control (including the betting operation which includes Sports Betting, the NHRA, RA, etc);
(2) An enquiry be launched into the entire horseracing industry, from corporatisation, examining (inter alia) such aspects as transformation, asset stripping, conflicts of interests, nepotism, non-accountability, inconsistent and credible control and regulations, enrichment (if shares were issued to certain PDI individuals/groups only?), etc.

Consider a scenario whereby all soccer clubs are taken over by a single entity, stadia are shut down to utilise just one per Province, anyone wanting to play soccer must pay a fee, nobody else can stage a soccer match, no accountability, one must be family or friend of the chairman / officials for any position / tender, etc?

(3) A National Horseracing (Equine) Board be established and assigned the functions of regulating, control and meaningful transformation of the entire Equine Industry;
(4) The Board to take possession/ownership of all the assets of the industry (race tracks & Province/local municipality leased/donated/sponsored property);
(5) SASCOC is said to own 5% shares in Phumelela (according to a media statement by the CEO of Phumelela, Mr Riaan du Plessis), and has representation on some of the boards; these must be accessed by and transferred to the Board.
(6) The Board to have relevant, independent interest groups (owners, trainers, jockeys, grooms, punters, etc) represented for its administration and operation;
(7) Operational management could be outsourced to a strategic partner/s. The gambling side only could be corporatised / privatised.
( The Department must not tax the entity for a period of 10 years;
(9) All revenue (profits) generated must be for the explicit promotion of generally, the equine sports, and specifically, horseracing;
(10) The Board can acquire/establish its own race tracks, set up syndicates, promote trainers, set up a national stud (like Ireland), etc, with emphasis on the previously disadvantaged.

JOB CREATION
It is estimated that at least 20 000 new jobs will be created. Thousands more will be available in setting up and running the various projects.

ENSURING VIABILITY
A cardinal strategic feature to ensure that the entity remains perpetually viable is to give a stake to punters (black and white), who are the backbone of the industry.

Herein, the proposal is-
1. About R10-million be set aside each year from operating capital / profits;
2. R7-million be used to purchase about 200 horses privately from breeders or from national auctions;
3. These horses will be placed in the care of trainers locally who support meaningful transformation;
4. 50% of ownership in these horses be awarded free to at least 2 000 punters country-wide;
5. The entity retains the other 50% and will pay for the keep (training) of the horses (this is the balance of R3-million);
6. At the end of the year, after deduction of all expenses from the total winning stakes amassed by the runners, each punter will receive a pro-rata dividend.
7. Where a winning horse is trained /owned by a HDI, an additional 10% will be added to the winning stake; this will encourage blacks to enter the industry.

Here is the spin-off-

1. The punter, who has even 0.01% share in a horse, will place his bet on the horse when it runs;
2. This will in turn boost betting turnover and tax revenue for the department;
3. If the year-end dividend is high (with some horses performing well!), that punter (who can afford to) can then join the club where he will pay for membership and share expenses
4. Alternatively, s/he can purchase his/her own horse/s to run for him/her.


NB:

Fair comment, criticism, suggestions, input..... welcome!

Very interesting read. Eish. Africa not a place for 'sussies'

umlilo - with regards to your point 7 of the proposal - outsourcing to strategic partners. Which strategic partners did you have in mind? I think the set up as it stands today holds the knowledge exclusively? I cannot think that there are 'strategic partners' waiting in the wings to take up operations of this magnitude?

when you have knowledge embedded/controlled by the very bodies you wish to exclude in the change, the only way to do it is through systematic change management, not an overthrow as your proposal suggests. Correct me if I am misreading the intentions/your proposal

The change will have to happen from the bottom up - and perhaps by bringing in graduates into the more senior positions (non-white graduates if you wish). The knowledge for horseracing as a sport and its operations is very specific - and within each operational group there is knowledge sharing (vertical), but not necessarily horizontal between different operational levels - it is not a matrix based knowledge share, and therefore replacements are almost impossible unless they are organically grown, or pulled from other disciplines (sport/entertainment) and a new strategy adopted and fed down. Its about far more than the money and the jobs.

@don:

'I think the set up as it stands today holds the knowledge exclusively?'

As I mentioned, not cast in stone.... and compiled from within my limited life world.

Yes, the current operators does not necessarily have to be replaced as long as they don't have access to the assets and are fully accountable to ensure that horseracing is their priority and not on the other 'profitable' sports betting ventures. If that is the route, then the entire industry must be brought under Sports & Recreation with profits being utilised for development of the various codes of sport. The DTI (and Gambling Boards) have no interest in the sport except for the generation of taxes for Government / budget.

You must remember that, during the corpratisation negotiations, there was a stake reserved for a 'strategic partner' that was to be headhunted from overseas; Phumelela was not to have been the operator. When it took on the role, that's when they had access to the assets which they then stripped willy nilly. That should never have been permitted. In fact, legal fundis can probably see a serious problem herein and even a knowledgeable MEC could ask for an investigation..... in time!.

As much as there is this call for BEE (which I don't approve of, as much as Mr Richard Maponya also observed the other day), black participation has to be educated, guided and nurtured (subject also to interest in the sport). Therefore, setting up syndicates for punters would be the first road to education and involvement.

In view of the symbiotic relationships (albeit even within the current setup), agreed, a matrix is difficult to arrive at, save that the interest in sport be developed first.

but how? how can it move forward from where it is now - demerger about to happen also with a third party which has not been disclosed. And not just how, how quickly can it be done - will it be done in time - before there is nothing left worth saving? also, what are the salient points which would attract the current government's willingness to get involved - bar the fact that should the demerger go ahead there would be a monopoly let alone the oligopoly (ref another post on this forum and also the Sunday Times of today)? sorry umlilo to pull it apart like this but for clarity's sake, and as for the government, do they really give a rat's bottom what happens in racing and who runs it - last we heard was that Rian du Plessis was asking the gov for a bailout - any news on this?

It would be good to know what that meeting here in Chelsea, UK is all about - the leaders' conference of which one aspect is horseracing - only 'selected delegates' allowed as you know, deliberating the future of racing worldwide.

for interest's sake, what happened to the third party and why/how did Phumelela end up doing operations?

Don - I think the 3rd party has now been disclosed.
Check the thread .............Authorities dig up dirt.

I don't think Phindi Kema + her foreign funded company was that 3rd party no, she was always a standalone operator - there is an older newspaper article announcing her arrival. There is another 3rd party involved in the demerger of late?

@don:

'but how? how can it move forward from where it is now - demerger about to happen also with a third party which has not been disclosed.....

And not just how, how quickly can it be done - will it be done in time - before there is nothing left worth saving? also, what are the salient points which would attract the current government's willingness to get involved - bar the fact that should the demerger go ahead there would be a monopoly let alone the oligopoly (ref another post on this forum and also the Sunday Times of today)?'

*****************************************************************




I would think that it can move forward as long as our stakeholders get their act right. For intance, right now, we have 5 different interest groups:

1. The operator who is taking flack for the industry's woes (not saying rightly or wrongly);

2. Other stake holders (owners, breeders and trainers), who are either getting out or voicing their concerns vocally about the the degeneration of the industry. Within this, there are elitists and ordinary people (middle to even lower income);

3. The punters who remain on the periphery (and are ignored by the stakeholders in 2 above. The majority of them give two hoots about ownership and the industry as a sport; they only want 'info' or a good thing..... to make money!

4. Add to this matrix the grooms (whose interest, honestly, is that of a living....job). The majority of them are blacks. Bring in the black punters. One then has this great pool of blacks within the industry who have no say or involvement within the industry as a sports. They also have no idea of what's happening and how it will affect them.

This is because of the stratification of our society into (here we go!) racial lines which denied them education / intervention about horseracing as a sports,which many of us see it as.

5. Most importantly, we have a Government in place that comes from 5 that does not have a vaguest idea about the industry.It puts in place people who equally are ignorant about the industry, except to make uninformed and even some prejudicial decisions (as long as there is a kickbakkc!)

So, it is the groups of 3, 4, 5 that are vital in terms of majority support for representation / request for intervention by Government. Simultaneously, we have to educate Government and its officials (even by dramatic / extreme arguments) for the necessity to intervene; not to control, rather, to correct, before it's too late!




'sorry umlilo to pull it apart like this but for clarity's sake, and as for the government, do they really give a rat's bottom what happens in racing and who runs it - last we heard was that Rian du Plessis was asking the gov for a bailout - any news on this?'

Government gives a damn as long as there are fat cats sitting on Gambling Boards (most of whom have never ever been to a racetrack or know the horse's whiskers from its tail!), who can decide over a model that generates income for it!

'It would be good to know what that meeting here in Chelsea, UK is all about - the leaders' conference of which one aspect is horseracing - only 'selected delegates' allowed as you know, deliberating the future of racing worldwide.'


That's the problem with the industry.... only 'selected delegates' are invited who are sent from the operators (business end). For instance, for years I approached the National Gambling Board to invite me as a speaker on the industry at the Conferences; not even an acknowledgement! Yet, Mike Burns and the former CEO and Chairperson met with me and agreed that there were major problems within the industry!



'for interest's sake, what happened to the third party and why/how did Phumelela end up doing operations?'

I resigned from the Gambling Board on principle (the sub-committee was opposed to corporatisation and so was I). The chairman and Molekethi unilaterally took the decision to go ahead without checks and balances.

Additionally, I was also against a certain casino licence (in terms of guiding requirements).

In both instances, I was offered a bribe that I turned down. When this casino got its licence, I resigned on principle as I would not be party to a decision which was 'irregular'!

Thus, I am not aware of how Phumelela ended up, subsequently, doing the operations. Your guess is as good as mine; the suspicion remains!