Newsletter| Horseracing in South Africa remains untransformed and benefits a white minority grouping led by Phumelela Gaming and Leisure, all to the total exclusion of black people, Public Protector Advocate Busisiwe Mkhwebane has found by vercingetorics
The preliminary findings by Mkhwebane are a culmination of a marathon investigation which was started in 2012 by her predecessor, Advocate Thuli Madonsela.
In 2011, the United Kingdom government disposed of a similar agency, selling it for over £265 million. Kema contends that Phumelela is now using the Totalisator Agency Board and all the race courses, which it received for free during the corporatisation and restructuring period, to monopolise the sector and prevent other potential players from accessing the industry.The company is also involved in racing in the Western Cape, albeit through various partnerships.
When the agreement to corporatise was signed, the agreement was that the money would be donated to the industry for development of horseracing. Inclusivity and having a certain percentage in the hands of black groups were not achieved, Mkhwebane found. The company has warned that if it doesn’t get such an undertaking from Mkhwebane, it will rush to court to interdict her from publishing the final report until it has received all the requested information, cross examines all witnesses and makes further submissions.
The levy which Phumelela receives from the provincial government in Gauteng, a company spokesperson said in a statement, is used to subsidise the staging and hosting of races. Further, the spokesperson said other race clubs in other provinces joined the corporatisation and restructuring voluntarily.
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