In a press release issued on Tuesday, 24 April 2018, Phumelela Gaming has responded to the Phindi Kema complaint with the Public Protector against the Gauteng Provincial Government for allegedly exceeding its authority by transferring five racetracks located in other provinces to Phumelela (read more here).
Phumelela’s response states: “Ms Kema has a history of instituting meritless complaints and litigation against Phumelela. This includes a matter in which Ms Kema appealed against a finding of the Competition Tribunal, without success, to the Competition Appeal Court and the Constitutional Court. Both of these courts granted cost orders against Ms Kema. These taxed costs are in excess of R250 000 (excluding interest thereon) and Ms Kema has, despite demand, failed to settle the cost orders.
Ms Kema’s original complaint, which was made in 2013, was that in 1997 the MEC in Gauteng transferred the Arlington Racecourse in Port Elizabeth to Phumelela without following due process. The obvious and immediate question must certainly be how likely is it that the Gauteng government owned a race course in Port Elizabeth? The allegation is hilarious, to put it mildly.
Phumelela has substantiated to the Public Protector that Arlington has not been owned by the South African Government or by any public authority since at least 1815. Phumelela has acquired its racecourses from racing clubs, which belonged to their members. It did not buy any racecourse from government.
Phumelela has co-operated and will continue to co-operate with the investigation of the Public Protector insofar as it pertains to state affairs or in the public administration. Phumelela has reserved its rights to request compensation for the expenses it has incurred in connection with the investigation, in accordance with section 10 of the Act.”
* JSE-listed Phumelela Gaming And Leisure Limited is the horseracing and/or tote betting operator in seven of South Africa’s nine provinces. The company also manages horseracing and tote betting in the Western Cape on behalf of Kenilworth Racing.
