While South African horseracing circles at the start awaiting an all-clear that may yet be some way off, we must be prepared to continue to live with the coronavirus among us for a year or even more, President Cyril Ramaphosa has told the nation in his e-newsletter.
Biznews reports that the South African leader has not backed down on the country’s strict lockdown measures.
In his email, President Ramaphosa says: “Since the beginning of May, when we began the gradual easing of the nationwide coronavirus lockdown, many people have started returning to work. As part of the phased recovery of the economy, companies in certain specified industries have been able to resume part or all of their operations.”
Find the full Presidential letter on BizNews.com.
Meanwhile, www. bloomberg.com reports that Phumelela Gaming & Leisure Ltd, the nation’s biggest horseracing company, will be receiving a 100 million-rand ($5.5 million) lifeline from Mary Oppenheimer Daughters Pty Ltd. after the racetrack owner filed for a local form of bankruptcy protection.
The failure of Phumelela would have a devastating effect on the industry, and the funds are an attempt to save the sector, Wehann Smith, a board member of Mary Oppenheimer Daughters and a director of the Racing Association, told Business Day newspaper.
Wehann Smith
Phumelela — which operates four racecourses, five training centers and over 200 tote outlets comprising nearly 150 branches — has been unable to stage events since the government banned large gatherings in mid-March as the Covid-19 pandemic took hold.
The Johannesburg-based company announced it had filed for so-called business rescue on May 8.
Phumelela used to count former Steinhoff International Holdings NV Chief Executive Officer Markus Jooste as a director and significant shareholder. Jooste, who was an owner of many of the country’s racehorses, was forced to resign all of his directorships in the wake of an accounting scandal at Steinhoff that erupted in 2017.
Phumelela’s revenue started to decline after that and the gambling company, which reported a 109 million-rand full-year loss, started cutting jobs last year amid the horse-racing industry slump.
The stock has tumbled 96% since the start of 2019, leaving the company with a market value of less than 42 million rand. At the company’s request, trading in its shares was suspended on May 8.
The country’s richest were among the first to respond to President Cyril Ramaphosa’s request for funds to help fight the pandemic. The families of Nicky Oppenheimer and billionaire Johann Rupert committed 1 billion rand each to support small businesses and save jobs. Oppenheimer’s sister, Mary, later added another 1 billion rand, while billionaire Patrice Motsepe and his companies pledged to spend 1 billion rand on fighting the disease.
Naspers Ltd., Africa’s largest company by market value, has also committed to spending 1.5 billion rand in the country as the battle against the pandemic intensifies.
