Public Protector, Adv Busisiwe Mkhwebane (Photo: Flickr)
Public Protector Adv Busisiwe Mkhwebane has confirmed that the public hearings into horse racing, first announced in May 2018, will commence on Tuesday, 4 September 2018 at the office of the Public Protector in Pretoria.
The investigations are based on a series of complaints lodged by Ms Phindi Kema, Mr Chophelikhaya Simoto and Mr Hanif Manjoo alleging maladministration and improper conduct relating to the Memorandum of Understanding (MOU) drawn up between the Gauteng Provincial Government (GPG) and the Gauteng horseracing industry 21 years ago. The MOU led to the transfer of a number of racecourses to Phumelela Gaming and Leisure (Pty) Ltd.
Complaints
The initial complaint was lodged by Ms Phindi Kema in January 2012 against the Gauteng Provincial Government for corporatising the industry, establishing Phumelela and exceeding its authority by allowing the transferring of 5 racetracks located outside of Gauteng into the ownership of the public company without following the appropriate procedure and public participation process.
Ms Kema’s complaint was lodged with then Public Protector Adv Thuli Madonsela who, in 2012, found a prima facie case of malpractice.
The second complaint, lodged by Mr Chophelikhaya Simoto, President of the South African Grooms Association (SAGA), centres on an amount of R17,5 million that the Horse Racing Development Fund (HRDF) paid to Phumelela, earmarked for the benefit of grooms, which he alleges was never released.
Finally, Mr Hanif Manjoo, a former employee of the Gauteng Gambling Board (GGB), lodged a complaint in 2013, alleging that the Gauteng Provincial Government disregarded the legislative prescripts regulating the disposal of the government’s assets during the transformation and corporatization of the racing industry. Mr Manjoo further alleged that the former Gauteng MEC for the Department of Finance and Economic Affairs (GDFEA), Mr Jabulani Moleketi, failed to take into consideration objections submitted by the Horseracing committee of the Gauteng Gambling Board regarding the corporatization of the industry and that the transfer of state assets was improper.
The matter has been investigated over the past six years, and Adv Madonsela’s successor, Adv Mkhwebane has decided to finalise the last part of the investigation through a public hearing.
Background
The “Corporatisation” of racing came about at the behest of the Gauteng Provincial Government in 1997, which designed and oversaw a structure which has subsequently overseen a decline in the Sport and a reduction of 85,000 jobs with the sale of many tracks and losses in breeding farms and stables.
It is also believed that the structure permitted the founding principles to be distorted and cause what many people think to be the capture of the industry by individuals such as Markus Jooste.
The Public company Phumelela issued a cautionary announcement to the JSE regarding a restructuring plan in a release dated 18 July 2018.
The Public Protector’s office is calling in key government departments including the DTI, Department of Sport and Gauteng Provincial Government to testify or make submissions.
The National Horseracing Authority, as the sport’s regulatory body, has been asked by the Public Protector to provide contact details for those being called to testify which includes six current or former directors of Phumelela.
Public Hearings
The first round of hearings, where Adv Mkhwebane will hear evidence from the complainants, will be held as follows:-
Date: Tuesday, 4 September, 2018
Venue: Conference Room, Public Protector House, 175 Lunnon Street, Hillcrest Office park, Pretoria
Time: 09H00
The hearings are open to the media. Journalists who are interested in attending are hereby advised to confirm attendance with Mr Salvation Mokgatlhe on [email protected].
Enquiries can be directed to:
Oupa Segalwe
Acting Spokesperson
Public Protector South Africa
012 366 7035
072 264 3273
[email protected]
www.pprotect.org
