Public Protector Busisiwe Mkhwebane will be holding public hearings into alleged improprieties related to the corporatisation of the horse-racing industry in Gauteng.
The hearings will start on September 4 at Mkhwebane’s offices in Pretoria.
They will form part of her investigation into alleged maladministration and improper conduct related to a memorandum of understanding (MoU) between the Gauteng Provincial Government and the Gauteng horse-racing industry‚ concluded 21 years ago. It led to the transfer of certain racecourses to Phumelela Gaming and Leisure (PTY) Limited.
“The MoU sought to re-organise and restructure the industry into a single corporate structure‚ reduce the involvement of the (provincial government) in the sport and make the sport economically viable‚” said Public Protector spokesperson Oupa Segalwe on Wednesday.
“Following the conclusion of the MoU and the dissolution of the Horse Racing Development Fund (HRDF)‚ Phumelela was formed and listed on the Johannesburg Stock Exchange.”
Parliament’s labour portfolio committee said earlier this month it was “not impressed” with the living conditions of horse grooms at the Randjesfontein Race Course in Midrand.
The committee visited the North Rand Training Centre at the racecourse after grooms protested at Randjesfontein in June.
The committee has formally requested the labour department to conduct “thorough inspections in the entire horse racing industry to ensure compliance with the laws of the country”.
The office of the Public Protector received complaints about the horse-racing industry in the province in 2012 and 2013. They included:- Phindi Kema alleged the conclusion of the MoU was improper and constituted maladministration because it did not follow a parliamentary consultation process. She said this led to a monopoly of the industry in favour of Phumelela and Gold Circle (Pty) Limited. Kema alleged that as a result‚ horseracing clubs in Gauteng and other provinces “handed over” horse racecourses to Phumelela for free‚ some of which were later sold for profit.- South African Grooms Association (SAGA) president Chophelikhaya Simoto alleged that during negotiations to corporatise the industry‚ it was agreed that the HRDF would pay R17.5-million to Phumelela for the benefit of grooms. He alleged that Phumelela did not pay the money to the grooms.- Gauteng Gambling Board (GGB) former employee Hanif Manjoo alleged in 2013 that the provincial government “disregarded the legislative prescripts regulating the disposal of the government’s assets” when it was transforming and corporatising the industry.
- TimesLIVE
Public Protector to probe horse-racing industry in Gauteng
Image: File
Public Protector Busisiwe Mkhwebane will be holding public hearings into alleged improprieties related to the corporatisation of the horse-racing industry in Gauteng.
The hearings will start on September 4 at Mkhwebane’s offices in Pretoria.
They will form part of her investigation into alleged maladministration and improper conduct related to a memorandum of understanding (MoU) between the Gauteng Provincial Government and the Gauteng horse-racing industry‚ concluded 21 years ago. It led to the transfer of certain racecourses to Phumelela Gaming and Leisure (PTY) Limited.
“The MoU sought to re-organise and restructure the industry into a single corporate structure‚ reduce the involvement of the (provincial government) in the sport and make the sport economically viable‚” said Public Protector spokesperson Oupa Segalwe on Wednesday.
“Following the conclusion of the MoU and the dissolution of the Horse Racing Development Fund (HRDF)‚ Phumelela was formed and listed on the Johannesburg Stock Exchange.”
Parliament’s labour portfolio committee said earlier this month it was “not impressed” with the living conditions of horse grooms at the Randjesfontein Race Course in Midrand.
The committee visited the North Rand Training Centre at the racecourse after grooms protested at Randjesfontein in June.
The committee has formally requested the labour department to conduct “thorough inspections in the entire horse racing industry to ensure compliance with the laws of the country”.
The office of the Public Protector received complaints about the horse-racing industry in the province in 2012 and 2013. They included:- Phindi Kema alleged the conclusion of the MoU was improper and constituted maladministration because it did not follow a parliamentary consultation process. She said this led to a monopoly of the industry in favour of Phumelela and Gold Circle (Pty) Limited. Kema alleged that as a result‚ horseracing clubs in Gauteng and other provinces “handed over” horse racecourses to Phumelela for free‚ some of which were later sold for profit.- South African Grooms Association (SAGA) president Chophelikhaya Simoto alleged that during negotiations to corporatise the industry‚ it was agreed that the HRDF would pay R17.5-million to Phumelela for the benefit of grooms. He alleged that Phumelela did not pay the money to the grooms.- Gauteng Gambling Board (GGB) former employee Hanif Manjoo alleged in 2013 that the provincial government “disregarded the legislative prescripts regulating the disposal of the government’s assets” when it was transforming and corporatising the industry.
- TimesLIVE
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