Home » Racing & Sport » Phumelela – Who Is Protecting Who?

Phumelela – Who Is Protecting Who?

Any shareholders concerned enough to act decisively?

Except for global warming, the Phumelela leadership were able to identify a plethora of adverse external factors that contributed to a dismal set of results for the financial year ending 31 July 2019.

Brendon writes in the Sporting Post Mailbag that the fact that the Phumelela leadership did not acknowledge their efforts or lack thereof that contributed to the devastation, reaffirms a leadership team that is in denial of their collective responsibility.

Having ONE cheerleader in the audience to applaud the destruction of R1.2 billion of value when people around the country were shell-shocked by the results and the utterances of the Chair and the CEO, is the patronising cocktail that Phumelela Shareholders ordered and were served.

Who is the Thoroughbred Horseracing Trust that has to date played the waiting game (like every other bystander in the industry, hoping for the self-correction)?

Why would any investor want the current leadership in office for another second when technical insolvency and business rescue is, in no uncertain terms, your destiny?

Is the Thoroughbred Horseracing Trust going to lead the charge in terms of the provisions of section 71(1) of the Companies Act to remove the directors by ordinary resolution with 50,01% majority at the shareholders meeting?

This may be the only way to lead the urgent change required with a recapitalisation of the balance sheet that would see the existing shareholding block of a few individuals being diluted to a point that redresses the power imbalance that continues to threaten the sustainability of the sport.

It is unfortunate that the majority of the Phumelela directors and executives lack what is required of a person holding office in a fiduciary capacity, of a JSE listed entity.

It remains a mystery why these directors and prescribed officers of Phumelela have not stepped down voluntarily and whether they fully understand the provisions of section 77 of the Companies Act that covers liability of directors and prescribed officers. Who is protecting who and at what cost?

Who is responsible for the betting operations reduction in profitability of R201.7 million?

Rob Scott – not to blame

Let me surprise you all by saying that Rob Scott is definitely not responsible for this mess.

I will stand by this statement. Read on!

Could John Stuart be responsible? Maybe.

Ordinarily, any reasonable person would deduce that the Board of Directors are responsible.

But this is no ordinary company and from what I have observed, it may be the only company that is not obliged to operate within the laws, rules and regulations that ordinarily apply to a South African Listed company that operates in a highly regulated environment.

THE OVERSIGHT ROLE AND RESPONSIBILITIES OF THE BOARD OF DIRECTORS

Ordinarily, the Board of Directors are ultimately responsible for the company.

The Board of Directors delegate responsibility to the executive directors to run the day-to-day operations of the company in strict compliance with the delegation of authority (that would set out the general authority and limitations to commit the company on behalf of the Board of Directors).

The following would ordinarily fall outside the general delegation of authority and would require the Board of Directors to convene a (special) meeting in order to discuss, agree and authorise a person (usually a director) to give effect to the resolution in respect of:

1) Appointing a new Chief Executive Officer (“CEO”) following receipt of the resignation letter of the outgoing CEO;

2) Appointing a new Executive, Sports Betting following receipt of the resignation letter of the outgoing Executive Director. It being noted that this position was previously an Executive Director position and only the Board would have the authority to “downgrade” the position to one that is an executive management position;

So how Did the Board of Directors, the Nominations Committee and the Social and Ethics Committee (both sub-committees of the Board of Directors) fulfil their fiduciary duties and comply with the Companies Act, the King Code, the JSE Rules and Regulations, the EE Act, all other legislation to promote equality and prevent unfair discrimination?

In relation to the permanent (not interim or acting) appointment of the Sports Betting Executive to replace the Executive Director, Sports Betting in less than 2 business days of the resignation of the outgoing employee and director.

In this regard, I refer you to the following excerpt of the SENS announcement dated 03 December 2018 under the heading: Resignation of Executive Director, Sports Betting

  • “the board of directors of Phumelela Gaming and Leisure Limited (“the Board”) hereby notifies its shareholders that Mr Vee Moodley has tendered his resignation as Executive Director, Sports Betting effective 30 November 2018″
  • “…, current CEO of Tellytrack, will assume the role of Sports Betting Executive”

If section 3.59 of the JSE Limited Listing Requirements were satisfied in relation to announcing the resignation of Mr. Vee Moodley and the SENS announcement was issued by no later than the end of business day following receipt of their resignation notice, then the following questions are in desperate need of answers:

1) Who did the Board of Directors charge with the responsibility and issues a mandate to, brief and guidelines to commence and conclude an executive search for a replacement Chief Executive Officer and Executive Director: Sports Betting positions?

2) When did the Board of Directors meet re: 1) above and did Company Secretary coordinate same and guide the meeting proceedings?

3) Was a valid notice issued to board members to coordinate the meeting of the Board of Directors in 1) above and, if not, did the members waive their rights to the minimum notice period required in terms of the Companies Act?

4) Who drafted the brief to advertise (and issue to executive search recruitment agencies, media houses and website administrators) the vacancy for the Chief Executive Officer position and when was this brief disseminated?

5) Who coordinated engagements with applicant for the vacancy including pre-screening CVs’ and coordinating the diaries of the interviewing panel to interview identified / shortlisted candidates?

6) Who selected and briefed the interviewing panel on the scorecard and the criteria to objectively evaluate aspiring applicants?

7) How many applications were received for each of the vacant positions and what was the racial and gender split of the applicants?

8) How many applicants were interviewed by the interview panel and what was the racial and gender split of the applicants?

9) How many of the shortlisted candidates that proceeded to the final round of interviews were EE candidates and what was the racial and gender split of the applicants?

10) What were the main concerns raised by the interview panel in appointing an EE candidate for the position of Executive: Sports Betting and Executive: Racing?

11) Was the EE Forum aware of the vacancies and the advertisement thereof and did the EE Forum receive (feedback from employees) or provide (feedback to management and the Nominations Committee) on whether the recruitment processes were open, fair and transparent?

12) Did Phumelela copy the recognised union and allow for the participation of EE Committee for the positions as per the EE plan submitted to the Department of labour (EEA13, Page 3 and 4 signed and dated 30 November 2017 by Mr. Andreas Heide)

13) Did the Social and Ethics Committee and the Nominations Committee discuss the lack of racial and gender transformational challenges in approving and motivating to the Board of Phumelela the appointment of the CEO, Executive: Sports Betting?

14) Did the Social and Ethics Committee and the Nominations Committee consider appointing CEO, Executive: Sports Betting on an interim basis in the interest of sourcing or head-hunting EE candidates and transforming the management and Exco team?

If not, what was the reasoning advanced as the Executive: Sports Betting does not, prima facie, appear to have the requisite experience and track record (based on his prior employment record) nor the appropriate qualification for the said position?

15) Did the successful candidates submit an application and CV’s for the respective positions like all other candidates who applied for the position and were unsuccessful? If so, when and who did the successful candidate submit his application to?

16) Did the board members of the Nominations Committee and the Social and Ethics subcommittees participate in the screening and interviewing of shortlisted candidates?

17) Who compiled a Nominations Committee and Social and Ethics Committee submissions detailing all the information above from points 4) to 16)?

18) Did the Company Secretary play a role in coordinating diaries of the Nominations Committee and Social and Ethics Committee board members to set up a meeting to discuss and deliberate on the submission in 17) above?

19) At the Nominations Committee and Social and Ethics Committee meetings in 17) above, did any committee members express any concerns pertaining to the recruitment process, the final short-listing process and specifically the lack of transformation and EE candidates in the motivation to propose the preferred candidate?

20) Following the meeting of the Nominations Committee and Social and Ethics Committees in 17) above, did the Company Secretary coordinate a meeting of the Board of Directors to discuss the recommendations of the Nominations Committee pertaining to the appointment of the preferred candidate for the vacant position?

21) When did the meeting of the Board of Directors referred to in 20) above occur and if enough notice was not given in terms of the Companies Act, did the members waive their rights thereto?

22) Who compiled the submission to the board of directors to approve the final appointments for the vacant position?

23) Did the Board of Directors approve the appointments at the meeting in 22) above which had to have happened prior to the issuing of the SENS announcement above?

24) Did the entire Board of Directors consent to the SENS announcement or the content thereof prior to its release?

 I believe that any reasonable person would conclude that it is IMPOSSIBLE to achieve all the activities set out in points 1) to 24) within the period of 36 hours, that commenced on receipt of the resignation notice and culminated in the issuing the SENS announcements.

Companies ordinarily take on average around 6 months to recruit and onboard a successful candidate in such senior positions with a recruitment process that is open, transparent and free of unfair discrimination.

 If Phumelela is unable to provide credible answers to the above questions, then is the Public Protector’s findings regarding the industry perpetuating the exclusion of the black majority and benefitting the narrow white minority interests baseless?

The bottom line is that the above appointment is unlawful and makes a mockery of the King Code, the Employment Equity Act, the Employment Equity Plan of Phumelela and the Constitution of the Republic of South Africa.

This mockery was echoed in the appointment of John Stuart, Patrick Davis and recently two other senior white male appointment in the Betting Operations division.

Patrick Davis (pic: hamishNIVENPhotography)

So, in the last financial year, the three most senior appointments (all executives) were all white male, old boys club type appointments.

AND YOU WONDER WHY THIS COMPANY IS IN TROUBLE WITH NO DEFINITIVE PLAN?

Well there is overwhelming evidence that the current leadership lacks the knowledge, expertise and objectivity to create, lead, manage and sustain what the company and the industry pays them for!

There are many in the industry who have suspected for some time that the Board of Directors are not in control of Phumelela.

John Stuart

John Stuart

If there was a commission of inquiry, would each of the Phumelela directors provide similar answer to the 24 questions above or will they be confirming that there may be a parallel control structures that have rendered them obsolete.

The current and past board members have contributed to the demise of the industry by not diligently discharging their fiduciary responsibilities with due care.

So, if (or when) the industry collapses, would some of the directors, current and past, be held personally liable for the destruction caused?

What value, if any, can the current directors of Phumelela deliver to the company against the backdrop of the past financial year?

As I said earlier, Rob Scott is not responsible for the poor performance in the Betting Operations division. So, would the person/persons that appointed him stand up and account for their actions? Stepping down is also welcome.

There comes a point when the Presidency and the National Assembly has to make a call whether they want to send in the Special Investigations Unit to SAVE 140,000 JOBS.

I drafted a detailed communication some months ago and I was hoping not to dispatch it in the hope that the Phumelela leadership would have stepped down by now and avert eda political intervention.

That ship has sailed, and the communication will be dispatched shortly to the respective offices for the much needed assistance by 140,000 employees in the industry.

Have Your Say

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35 comments on “Phumelela – Who Is Protecting Who?

  1. Brian says:

    I couldn’t possibly read the whole story hear but very simply I agree. The whole lot should go. I now bet with Hollywood not so much that they sponsor almost everyone around, although that did play a part, but because I was simply tired of begging Telebet for a payout.

    Yesterday, Sunday take note, i withdrew from Hollywood not for one minute thinking I would receive payment but by Gum. I don’t even think it took an hour.

    Now PG, when you get it in your pea brained noggins that the punter needs a little respect, I’m not asking for a lot, Take baby steps though and you may get there, just one day at a time, think punter, punter punter, then look at your bank account

  2. Rodney says:

    Welldone Brandon on exposing corruption and inefficiency in running a multibillion operation. My advise to the board members is to step down immediately if you care about the 140000 people lives.

  3. Johno says:

    We have been calling for a full forensic audit into Phumelela for some years now..We now all know the way in which some of the the ex directors of the Trust who resigned shortly after the Steinhof saga managed in the business world.. Please Please Please will someone at the JSE call for an independent audit going back 10 years and pinpoint the transgressions and the money looted through dividends?? Also I am calling for a full investigation into the plight of the grooms through an Idependant company not politically connected tho report back to NHRA Phumulela RA and Gold Circle at the same time making that report public so nothing is hidden .

  4. Steve Reid says:

    Brandon thank you for this article, I was beginning to think that I was alone in my thoughts regarding “that” results presentation.

  5. jai says:

    well done brandon
    also please get dept of labour to audit all training centers and trainers operations including stud farms regarding compliance with the grooms.
    they need to check if minuim requirements are met in regards to labour recruitment and health and safety

  6. Outem says:

    It starts about 15 years ago when the then venerated Markus Jooste and the adulated Christoffel Van Niekerk got involved in horse racing.

    These champions of business splashed cash all around and were welcomed into horse racing with praise and open arms.

    They were seen by the elitist as men who could improve on horse racing and bring back the glory days of yester.

    We were not to know that they were more interested in blowing their own power trumpets. All the facets of horse racing in which they became involved were used as tools to harness the best commercial results and to lessen orher burdens.

    They were appointed to the RA board with promises of changes for the better. They weaved their way to become directors of Phumelela and the Racing Association. They became trustees of the Racing Trust. No one was appointed to any position of power and authority without their nod of approval. Before they departed, they played a hand in every business acquisition and scheme of Phumela.

    Anyone who obtained their positions directly or indirectly through Markus and Christoffel must go.

  7. Geoff says:

    One only has to visit a Tab outlet in any province to realize how badly run Phumelela is. No betting/deposit slips, no free Tabsheets, 5 day old results still posted on the wall, Punters watching races on TVs with volume turned down, Cashiers going on breaks just before a race etc. I doubt there’s any one from Management who visits these outlets regularly like retailers do.

    Only business that I know that works so hard to chase its customers away.

    It’s telling that Phumelela’s share price is currently lower than it was 15 yrs ago.

  8. The Thoroughbred Horse Racing Trust 27,391,183 26.72%
    Kalamojo Trading & Investments (Pty) Ltd 9,450,000 9,22%
    IHH Company (PTY) Ltd 8,796,443 8.58%
    Du Plessis, WA 5,512,575 5.38%
    Yerranzano Property Investments Ltd 4,498,011 4.39%
    Gride Investments Pty Ltd 3,898,542 3.80%
    Dihla Investment Holdings (Pty) Ltd 3,700,592 3.61%
    Vela Phumelela Investments 3,518,976 3.43%
    Peregrine 3,263,777 3.18%

    As at 28 July 2018

  9. Kalamojo – history

    2019-10-31 Company / Close Corporation AR Filing – Web Services : Ref No. : 5209702475
    2019-09-02 E-Mail sent to BERNARD DAVID HERBERG for 2019
    2019-09-02 E-Mail sent to STEFANUS JOHANNES DU TOIT POTGIETER for 2019
    2019-07-05 SECTION 6 PASTORIE PARK 33 LOURENS STREET AUDUS ESTATE SOMERSET WEST WESTERN CAPE7130
    2018-10-30 Company / Close Corporation AR Filing – Web Services : Ref No. : 5146275669
    2018-09-23 E-Mail sent to BERNARD DAVID HERBERG for 2018
    2018-09-23 E-Mail sent to STEFANUS JOHANNES DU TOIT POTGIETER for 2018
    2018-04-18 Director STEFANUS JOHANNES DU TOIT POTGIETER details was Changed
    2018-04-18 Director BERNARD KANTOR details was Changed
    2018-04-18 Director BERNARD DAVID HERBERG was added
    2017-10-16 Company / Close Corporation AR Filing – Web Services : Ref No. : 588200627
    2017-09-02 E-Mail sent to BERNARD KANTOR for 2017
    2017-09-02 E-Mail sent to STEFANUS JOHANNES DU TOIT POTGIETER for 2017
    2017-01-16 Director BERNARD KANTOR details was Changed
    2017-01-16 Director STEFANUS JOHANNES DU TOIT POTGIETER was added
    2016-11-15
    2016-11-10 2ND FLOOR AVON PLACE 15 QUANTUM STREET TECHNO PARK STELLENBOSCH WESTERN CAPE7600
    2016-11-02 Notice of change of auditors: VAN HEERDEN HERMANUS CHRISTIAAN FRANCOIS appointed.
    2016-11-02 Notice of change of auditors: BAKER TILLY GREENWOODS appointed.
    2016-11-01 Add Record Surname = KANTOR First Names = BERNARD Status = Active
    2016-11-01 Change Record Surname = KITSHOFF First Names = PHILLIP MYNHARDT Status = Resigned
    2016-09-26 New Company Registration – Web Services : 9999 : Ref No. : 951474836

  10. IHH Company

    2019-10-15 Annual Return Non Compliance – In Process of Deregistration Last Payment for AR Year/Month is 2017/6.
    2018-06-03 E-Mail sent to PHILLIPA ANASTASSOPOULOS for 2018
    2018-04-05 New Finacial year is from 01-03-2018 to 31-07-2018
    2017-07-16 Company / Close Corporation AR Filing – Web Services : Ref No. : 577303909
    2017-06-06 E-Mail sent to PHILLIPA ANASTASSOPOULOS for 2017
    2017-05-18 Notice of change of auditors: KPMG INC appointed.
    2017-05-18 Notice of change of auditors: THOMPSON DWIGHT DOMINIC appointed.
    2016-09-30 NO 37 FRICKER ROAD ILLOVO JOHANNESBURG GAUTENG2196
    2016-06-06 E-Mail send to PHILLIPA ANASTASSOPOULOS for 2016
    2015-06-18 New Company Registration – Web Services : 9999 : Ref No. : 926933620

  11. Gride Investments

    490819 XXXX 08 X GIDEON NAPOLEON SAM Director Active
    620827 XXXX 08 X MERRILL SIBYL IRENE KING Director Active
    520329 XXXX 08 X JOHN CHRISTOPHER ELLIS Director Active

    2019-09-16 Annual Return Non Compliance – In Process of Deregistration Last Payment for AR Year/Month is 2017/2.
    2019-08-27 Director PETER ORDE GOLDHAWK – Change was made. – Director / member status changed from Active to Deceased.
    2019-08-27 Director GIDEON NAPOLEON SAM – Change was made.
    2019-08-27 Director HAJERA KAJEE – Change was made. – Director / member status changed from Active to Resigned. – Postal address changed from P O BOX 14510 to 13 MIMOSA PARK. – Postal address changed from CLUBVIEW to 35 MIMOSA STREET. – Postal address changed from PRETORIA to CLUBVIEW.
    2019-08-27 Director JOHN CHRISTOPHER ELLIS was added
    2019-08-27 Director LESLIE DANIEL WILLIAMS – Change was made. – Director / member status changed from Active to Retired.
    2019-08-27 Director MERRILL SIBYL IRENE KING was added
    2019-02-28 E-Mail sent to HAJERA KAJEE for 2019
    2019-02-28 E-Mail sent to PETER ORDE GOLDHAWK for 2019
    2019-02-28 E-Mail sent to LESLIE DANIEL WILLIAMS for 2019
    2019-02-28 E-Mail sent to GIDEON NAPOLEON SAM for 2019
    2019-02-28 E-Mail sent to GOLDHAWK CORPORATE ADVISORY for 2019
    2018-11-13 Notice of change of auditors: TEKIE DANIEL MISGINA appointed.
    2018-11-13 Notice of change of auditor: and DELOITTE AND TOUCHE resigned
    2018-02-02 E-Mail sent to LESLIE DANIEL WILLIAMS for 2018
    2018-02-02 E-Mail sent to GOLDHAWK CORPORATE ADVISORY for 2018
    2018-02-02 E-Mail sent to HAJERA KAJEE for 2018
    2018-02-02 E-Mail sent to PETER ORDE GOLDHAWK for 2018
    2018-02-02 E-Mail sent to GIDEON NAPOLEON SAM for 2018
    2017-07-04 Company / Close Corporation AR Filing – Web Services : Ref No. : 576466618
    2017-02-01 E-Mail sent to HAJERA KAJEE for 2017
    2017-02-01 E-Mail sent to PETER ORDE GOLDHAWK for 2017
    2017-02-01 E-Mail sent to GIDEON NAPOLEON SAM for 2017
    2017-02-01 E-Mail sent to LESLIE DANIEL WILLIAMS for 2017
    2017-02-01 E-Mail sent to GOLDHAWK CORPORATE ADVISORY for 2017
    2016-02-01 E-Mail send to HAJERA KAJEE for 2016
    2016-02-01 E-Mail send to LESLIE DANIEL WILLIAMS for 2016
    2016-02-01 E-Mail send to PETER ORDE GOLDHAWK for 2016
    2016-02-01 E-Mail send to GOLDHAWK CORPORATE ADVISORY for 2016
    2016-02-01 E-Mail send to GIDEON NAPOLEON SAM for 2016
    2015-09-08 Director MVUSO MARTIN MBEBE details was Changed
    2015-09-08 Director HAJERA KAJEE details was Changed
    2015-09-08 Director GIDEON NAPOLEON SAM details was Changed
    2015-09-08 Director LESLIE DANIEL WILLIAMS was added
    2015-09-08 Director PETER ORDE GOLDHAWK details was Changed
    2015-09-04 Company / Close Corporation AR Filing – Web Services : Ref No. : 529144704
    2015-06-23 Annual Return Non Compliance – In Process of Deregistration Last Payment for AR Year/Month is 2012/2.
    2015-02-09 E-Mail send to HAJERA KAJEE for 2015
    2015-02-09 E-Mail send to MVUSO MARTIN MBEBE for 2015
    2015-02-09 E-Mail send to GOLDHAWK CORPORATE ADVISORY for 2015
    2015-02-09 E-Mail send to PETER ORDE GOLDHAWK for 2015
    2015-02-09 E-Mail send to GIDEON NAPOLEON SAM for 2015
    2009-10-19 DELOITTE AND TOUCHEDELOITTE WATERKLOOF HOUSE 221 WATERKLOOF ROAD WATERKLOOF 0181 P O BOX 11007 HATFIELD 0028 STATUS : ADDRESS CHANGE
    2009-10-19 Surname=GOLDHAWK Full ForeNames=PETER ORDE Id No********054083 Status :ACTIVENature of Change=APPOINTMENT
    2009-10-19 Surname=SAM Full ForeNames=GIDEON NAPOLEON Id No********624085 Status :ACTIVENature of Change=APPOINTMENT
    2009-10-19 Surname=VAN DER MERWE Full ForeNames=DAVID Id No********028082 Status :RESIGNEDNature of Change=DIRECTOR RESIGNED
    2009-10-19 Surname=GOLDHAWK CORPORATE ADVISORY Full ForeNames= Registration No=200401021807 Nationality=South Africa RSA Resident=1 Date of Appointment=17 January 2005 Profession= Designation=Secretary (Companies and CC”s) Residential Address Business Address 22 ARONSOHN ROAD LYME PARK EXTENsION 4 2060 Postal Address P O BOX 1558 FERNDALE 2160 Nature of Change=APPOINTMENT Status :ACTIVE
    2009-10-19 Surname=GOLDHAWK CORPORATE ADVISORY Full ForeNames= Registration No=200401021807 Nationality=South Africa RSA Resident=1 Date of Appointment=17 January 2005 Profession= Designation=Secretary (Companies and CC”s) Residential Address Business Address 22 ARONSOHN ROAD LYME PARK EXTENsION 4 2060 Postal Address P O BOX 1558 FERNDALE 2160 Nature of Change=APPOINTMENT Status :ACTIVE
    2009-10-19 Surname=GOLDHAWK CORPORATE ADVISORY Full ForeNames= Registration No=200401021807 Nationality=South Africa RSA Resident=1 Date of Appointment=17 January 2005 Profession= Designation=Secretary (Companies and CC”s) Residential Address Business Address 22 ARONSOHN ROAD LYME PARK EXTENsION 4 2060 Postal Address P O BOX 1558 FERNDALE 2160 Nature of Change=APPOINTMENT Status :ACTIVE
    2009-10-19 Surname=GOLDHAWK CORPORATE ADVISORY Full ForeNames= Registration No=200401021807 Nationality=South Africa RSA Resident=1 Date of Appointment=17 January 2005 Profession= Designation=Secretary (Companies and CC”s) Residential Address Business Address 22 ARONSOHN ROAD LYME PARK EXTENsION 4 2060 Postal Address P O BOX 1558 FERNDALE 2160 Nature of Change=APPOINTMENT Status :ACTIVE
    2009-10-19
    2009-10-19 Surname=GOLDHAWK CORPORATE ADVISORY Full ForeNames= Registration No=200401021807 Nationality=South Africa RSA Resident=1 Date of Appointment=17 January 2005 Profession= Designation=Secretary (Companies and CC”s) Residential Address Business Address 22 ARONSOHN ROAD LYME PARK EXTENsION 4 2060 Postal Address P O BOX 1558 FERNDALE 2160 Nature of Change=APPOINTMENT Status :ACTIVE
    2006-10-12 Change Record Surname = VAN DER MERWE First Names = DAVID Status = Active
    2006-10-12 Change Record Surname = KAJEE First Names = HAJERA Status = Active
    2006-10-12 Change Record Surname = MBEBE First Names = MVUSO MARTIN Status = Active
    2006-10-12 Change Record Company Name = GOLDHAWK CORPORATE ADVISORY First Names = Status = Active
    2005-02-23 Add Record Company Name = PRICEWATERHOUSECOOPERS First Names = Status = Resigned
    2005-02-23 Add Record Surname = MBEBE First Names = MVUSO MARTIN Status = Active
    2005-02-23 Add Record Company Name = GOLDHAWK CORPORATE ADVISORY First Names = Status = Active
    2005-02-23 Change Record Surname = TRAUB First Names = GEORGE HENRY Status = Resigned
    2005-02-21 SECOND FLOOR 90 RIVONIA ROAD SANDOWN 2196
    2005-02-21 P O BOX 783027 SANDTON 2146
    2003-08-20 Add Record Name : = DELOITTE AND TOUCHE Status : = Resign
    1998-11-13
    1998-11-12
    1998-02-26
    1998-02-26 GRIDE INVESTMENTS
    1998-02-26

  12. Shareholders as at 31 st July 2019 – 3% or more

    The Thoroughbred Horseracing Trust 27 391 183 26,72 %

    Kalamojo Trading and Investments Proprietary Limited 9 450 000 9,22 %

    IHH Company Proprietary Limited 8 796 443 8,58 %

    Du Plessis, WA 5 562 575 5,43 %

    Government Pension Fund – Norway 2 922 667 2,85 %

    Yerranzano Property Investments Limited 4 498 011 4,39 %

    Gride Investments Proprietary Limited 3 898 542 3,80 %

    Dihla Investment Holdings Proprietary Limited 3 536 905 3,45 %

    Vela Phumelela Investments 3 518 976 3,43 %

    Peregrine 3 263 777 3,18 %

    Totals 72 839 079 71,0%

  13. • Collecting long outstanding debts from Mashonaland Turf Club and Omphe Tshiamo, likely to realise R15 million in the next 12 months;

    Is that the racing garbage that takes precedence over the coverage a Group 1 or 2 at one of the major racing centres in the UK ?

  14. From the latest Annual Financial Statements – Share Options

    SHARE OPTION SCHEMES CONTINUED2019 Group Chief Executive and Finance Director option scheme
    Shareholder approval for the granting of 437 000 options to the Group Chief Executive and 341 000 options to the Group Finance Director was obtained at the Company’s annual general meeting held on 11 December 2018.

    The exercise of the options is conditional upon a minimum compound annual growth rate in the share price of 10% compound per annum over the vesting period.

    Number of shares 778 000
    Dividend yield 8,45%
    Interest rate 8,20%
    Volatility 23,75%
    Option take-up 100,00%
    Equity price R13,29
    Maturity date 1 October 2021
    20192018 Number of shares Exercise price cents Number of shares Exercise pricecents

    Summary of share options granted JA Stuart – 1 October 2018 437 000 quantity
    AW Heide – 1 October 2018 341 000 quantity

    778 000

    2,53 213 1302,5

    The above options may be exercised between 1 October 2021 to 1 October 2024

  15. Booktaker says:

    It is well known that Rob Scott runs Betting World for Phumelela. I want to know if he has been registered by the GGB to work for Betting World? He needs to be registered.

  16. They say Mr. Anton Marcus works at Betting World as a teller on his off-days ?

  17. James Goodman says:

    William Has highlighted the nepotism in Phumelela.
    Am i right in concluding the loss of over 20%of the Racing trust shares went to funding the purchase of Supabets?

  18. WILLIAM MILKOVITCH says:

    Phumelela has made significant strides in broadening its revenue base in terms of:

    • totalisator betting on soccer and rugby;

    • its international operations through the establishment of a totalisator on the Isle of Man and through the export of South African horseracing (televised coverage and racing data);

    • fixed odds betting opportunities offered through the Group’s wholly owned subsidiary company, Betting World Proprietary Limited, which was broadened by the acquisition of a 50% equity interest in Supabets SA Holdings Proprietary Limited (both licensed bookmaking concerns);

    • the acquisition of a 50% equity interest in Interbet, an online bookmaking business and betting exchange concern; and

    • limited payout machines.

    Page4

  19. WILLIAM MILKOVITCH says:

    Check out this sanctimonious flow chart :

    BUSINESS DRIVERS OF AN INTERDEPENDENT BUSINESS
    INFRASTRUCTURE • Racing • Retail • Betting • Technology • Hospitality and events • Systems/processes • Media • Publishing • Security

    THE CUSTOMER • Customer experience • Retention • Loyalty programmes • Customer facilities • Increased share of wallet • Acquisition

    MARKETING • Brands/events • Betting information • Market intelligence • Promotional activity • Customer understanding • Product/service development • Stakeholder insights • Channel development and management • Database/CRM • Loyalty/recognition programmes • Publications/website

    -flowing on-

    OUR PEOPLE

    Performance management • Brand ambassadors • Retention and upskilling • Behaviours
    • Recruitment • Values • Inspiration/motivation • One team

    What company again ?

    It gets more laughable with every page read . Check out “The Customer” and “Marketing” tabs

    18 bullets points : Phumelela 0 – Pulp Fiction 18

  20. WILLIAM MILKOVITCH says:

    Page 20 – OPERATIONAL ASSESSMENT

    Market circumstances did play a role, such as a run of matches in soccer favouring punters, and this affected both Betting World and Supabets.

    Both, but particularly Supabets, were also impacted by the market shift from high-margin football bets to numbers betting with materially lower margins.

    But there is no sugar-coating the fact that we scored own goals at Betting World.

    A decision to adapt the strategy to attract big betters, as turnover and profits had been declining, was ill-timed. Whilst the strategy worked in the first two months, it was disastrous in the following two months.

    With hindsight we should have delayed this strategy change until after the restructuring of the business when we could have been more focused on it.

  21. WILLIAM MILKOVITCH says:

    At 31 July 2019 the Group’s total facilities, include an unsecured revolving credit (“RCF”) facility of R300 million and bank overdraft facility of R55 million.

    The covenants of the RCF have been breached.

    The cash-flow forecast factors in a repayment of R40 million (R10 million per quarter) required in terms of the RCF agreement in the next 12 months.

    Executive management remains in regular contact with the Group’s bankers

  22. WILLIAM MILKOVITCH says:

    Disciplinary proceedings

    On 29 May 2019, the Gauteng Gambling Board upheld a recommendation by a disciplinary committee and found that Phumelela had contravened condition 10 of its race-meeting licence.

    The Board imposed a fine of R5 million, of which R2,5 million is suspended for a period of five years.

    Condition 10 requires Phumelela to make available visual broadcasts of race meetings for betting purposes and entitles it to recover the reasonable costs of doing so, provided that such costs are approved by the Board.

    The disciplinary committee recommended that Phumelela be found guilty of contravening condition 10, on the basis that the condition requires Phumelela to provide Tellytrack (including international racing) to bookmakers around South Africa on a cost-recovery basis.

    Phumelela disputes this interpretation on the condition.

  23. WILLIAM MILKOVITCH says:

    EBITDA -730.68 M

    The most important indicator of all.

    They are incompetent

  24. Brendon says:

    @William, nicely done Sir!

    What is you recommendation to shareholders? Buy, Sell or Hold? or is this share investment a goodbye with the current leadership?

    As a consequence of their own doing, the Phumelela executives are between a rock and a hard place. Let me not get into their latest set of financials and the disclosure transgressions and non-compliance with the laws and regulations. Same is to be addressed in a communication to the executives shortly, in the interest of encouraging them to do what is in best interest of the industry.

    If anyone can claim to hold the trump card to effect changes to the board and executives, today, it is The Thoroughbred Horseracing Trust (“Trust”). If the Trust is not under the control nor the influence of Phumelela’s leadership or those that are influencing/controlling Phumelela’s Leadership, then there is hope to accelerate changes to the leadership structure.

    Phumelela’s current situation and the the road ahead to navigate out of it may well be beyond abilities and comprehension. This is how it appears to be:

    1) Current liabilities = R740m

    2) Current assets = R269m

    Consequently, Phumelela is technically insolvent and the leadership theoretically only has immediate access (without requiring shareholder consents and approvals) to R269m of current assets to pay R740m of current liabilities.

    Couple the above with the fact that you are dealing with a JSE listed company that has a market capitalisation of R225 million, that would require the approval of its shareholders for any transaction >30% of its market capitalisation, i,e, R67.5m. This company is going to require a lot more than R67.5m to address the solvency and liquidity requirement of the business.

    If the Trust is not supportive of the current leadership, then it is in a position to block any shareholder approvals sought. That being the case, coupled further with a whole lot of executives that were unlawfully appointed and their performance and track record instills no confidence in the industry, is now not the time for the Trust to lead the change?

    PS. Note 19 (Borrowings )of the 2019 AFS states, inter alia,

    “The indulgence provided extends Group facilities for a further year provided the requisite terms and conditions are adhered to. In addition, a R50 million working capital standby credit facility with a 13-month term has been made available.”

    WHAT ARE THE REQUISITE TERMS AND CONDITIONS? If same is considered “Restrictive Funding Arrangements” in terms of the JSE Listing Requirements, then the company has not complied with the JSE Listing Requirements.

    HEIDE, WE AWAIT YOUR RESPONSE!

  25. Chris Swart says:

    Daya Moodley , you raise a great deal of extremely pertinent issues and they rightfully should be addressed

    No doubt though, they will revert with the tar brush – particularly Betting World and Scott , as well as the major shareholders and turn the blame game your way as a disgruntled former employee and ill struck bettor

    Good luck with this

  26. WILLIAM MILKOVITCH says:

    The Trust was established in 1997 at the time of corporatization of the horse-racing industry.

    The Trust holds a significant shareholding in Phumelela and is the sole shareholder of Kenilworth Racing.

    The principal object of the Trust is to promote the interests of all thoroughbred horse-racing in South Africa with a view to the long-term viability of the sport.

    It is an ancillary object of the Trust to promote and encourage schemes and projects which broaden the base of persons who participate and who are involved in the Sport to reflect the diversity of the people of South Africa, and in particular, to promote the participation and involvement of persons from historical disadvantaged backgrounds.

    Check this out.

    So in essence, the trustees of this trust are toothless, totally toothless.

    1 Broaden the base of people who participate …..so where’s the competition to the One Tote.

    2 Involvement of persons of historically disadvantaged backgrounds… so never mind the ugly details behind the grooms various strikes/actions/frustrations, if the Thoroughbred Racing Trust was for Real, they would have engaged in lengthy & considered negotiations in addition to creating a business model for all grooms on a NATIONAL LEVEL.

    Never mind all the provincial nonsense, all for one and one for all.

    Now any half decent Business Risk Analyst would have been on this case in the 1990’s already.

    I know who they are but do they have the acumen to get stuck in ?

    No ways

  27. WILLIAM MILKOVITCH says:

    Mark Currie
    Jessica Jell
    Bradley Ralph
    Barry Hendricks represents SASCOC on the Trust
    Gideon Sam represents SASCOC on the Trust.

    There are currently two vacancies on the Trust and these are being dealt with as a matter of urgency.

    The late Mr. Chris Gerber was the chairman. Well that’s no advert !

    We have heard all the glowing praises about the late Mr. Chris Gerber, then why all the tardiness about moving forward, The Thoroughbred Horseracing Trust ?

    You are the umbrella for SA horse-racing like the advertised protective Santam yellow umbrella

  28. Chris Swart says:

    Daya Moodley, the advantage of posting anonymously would be free speech, freedom of movement, an online persona, personal safety, data security,keeping your enemies guessing and giving voice to someone that would be actively silenced without repercussion.
    The reality is that there is no real way to be truly anonymous online and although it might take a lot of work, patience and legal expenses, you’re always a few strokes away from being exposed.

    The danger of such is their right to respond and spin things in their favour.

    They will portray you as a disgruntled former employee of Investec and a former Betting World customer with an axe to grind over disputed bets and threats of extortion

    While I admire your courage to take things to another level and challenge the corporate, I urge you to take caution when they turn things against you and have unequivocal proof in your favour.

    Don’t let the divide and rule mentality prevail, there are many trainers, owners and leaders in the industry that want to hear your voice but let it be one that can account for things and stand up when faced with a bully. There are allies that will stand by you once they realise who they’re dealing with, rather be on that ship

  29. Brendon says:

    @Chris,

    It’s important to highlight that the posts that you have read on SP under the name Brendon, is not a veiled attack on any individual who has not had a right of reply. I have since January 2019 sent a ton of emails to the executives of Phumelela to account for their actions. If your question is did they have the right of reply? Most certainly they have. Have I tried to work with them to get the Company on the right track? On multiple occasions I have attempted to and submitted detailed proposals. I have advised/requested the executives, on multiple, to step down, re-open the employment process and re-apply for their jobs in an open, fair and transparent process.

    Unfortunately, the executives have declined to engage constructively and they go into a state of paralysis when I write to them. Understandably so because, in my opinion, they lack the necessary expertise required of the holders of such office. I doubt they have ever had to deal with someone who questions them and interrogates they processes and decisions.

    It matters not who occupies their respective offices. What matters is their knowledge, expertise and contribution to the sustainability of the sport – that paramount, not the personal and self-interests at all costs that has permeated their decision making process.

    If a trainer, owner, punter, employee wants to engage me to assist them on any matter that they have suffered prejudice at the hands of any of the leadership, they are welcome to contact me via the editor of SP. If I am able to assist, my advice, assistance and services are pro-bono to any individual. There are many in the industry that will attest to this when they have approached me.

  30. Steve Reid says:

    It seems that the enemy of my enemy is my friend concept is lost on Mr. Swart. Whatever reason and/or right does our keyboard warrior have in exposing Brendon, particularly since Brendon is clearly in the same anti-establishment camp as Swart purports to be in? How does Mr. Swart have the knowledge that he has on an individual that he has neither met nor spoken with? Is Mr. Swart the crusader for change that he likes to portray himself as, or is he simply doing the work of an individual that has played his part in running the game into the ground, and now wants to character assassinate individuals that oppose? Brett Maselle you may now understand the rejection of the olive branch. Maak Oupa styf Lazarus.

    Let me give you some free advice Mr.Swart. Those that lead you by the nose and get you to do their dirty work will be the first to deny involvement when the crunch comes. I speak from experience. The individual that has been feeding you information has a vested interest in vilifying Brendon because of Brandon’s criticism of Kenilworth Racing and the administration thereof. The same individual should rather sort out the Burger King and other pressing liquidity issues down south before going on crusades against individuals who expose the truth. Those close links to Markus Jooste previously are not forgotten, nor forgiven, that’s for blooming sure.

    I have never met Daya Moodley but have knowledge of who he is and what the background to his gripe is. My advice is to carry on doing what you are, and continue to expose. We should do lunch, there’s plenty to share.

    The only thing necessary for the triumph of evil is for good men to do nothing.” ― Edmund Burke

  31. B Steele says:

    This is more intriguing than any Damon Runyon story the only character missing is Nick the Greek .That would be a lunch. Steve Brendon. Brett Ian Jayes and Jess . Bagels and boerewors on the menu Lick your lips folks

  32. Randle says:

    Maybe i assume wrong or maybe i am just foolish. From what i can see on tv grooms in other countries or at least the person walking with horses in parade ring looks to be a very imported part of the set up. And from what i heard is that its not just another job thats in countries like england and aus. Maybe i dont know

  33. WILLIAM MILKOVITCH says:

    SAA crashes and burns. It’s the end of the airline. Ramaphosa orders business rescue.

    Next Phumelela ?

    Grand Parade ( H Adams) has to dump Dunkin Dognuts ..voluntary liquidation

  34. Allistair says:

    Trying to draw a R500 from Telebet was a real mission, had to wait almost a half hour in Mitchells Plain,CPT as they have to mail Phumalelah in JHB for the approval of the payout, I have a TAB Telebet customer account since the 70s from the then Castle Street, Branch in CPT.
    Oh the manager said they just had a big EFT payout and they don’t have enough cash, I can come back in three hours time or try another branch….

  35. nordog says:

    Interesting stuff.All of it. I’m in the UK and visit SA twice a year and always get to Fairview whenever I can. Racing/bookmaking/Tatts in PE would make a great story all of it’s own over the last 50 years. The reason for this post is to say that the Racing Post here will be having a lengthy detailed article on ‘Crisis in horseracing in the rainbow nation’ this Thursday the 12th. This may well be outside the pay wall and free to read on the RP website. The RP has a well deserved reputation for excellent sports journalism and it will be fascinating for the SA horseracing community to see itself from outside the SA bubble. The SP should be able to get permission to freely re-publish it here I would think.

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