Charges over city horse race
A TOTAL of 89 criminal charges were laid against high ranking officials at the Department of Finance, Economic Development and Tourism and the Sol Plaatje Municipality as well as the organisers of the Flamingo Park horse racing event that was held in August 2017.
The DA also intends applying for an interdict to prevent the event from taking place this year as they believe that it is in contravention of the gambling laws, where R2 million of taxpayers money was “squandered on an illegal event”.
DA MPL, Advocate Boitumelo Babuseng, yesterday stated that the events management company was not in possession of the required gambling licences, employee licences and employment certificates at the time it hosted the event.
“The sole director of the events management company is a public servant. The fact that he is employed at Sol Plaatje Municipality was not declared as a possible conflict of interests when his company was appointed.
“National and provincial legislation prevents him from holding such licences or from having a financial interest in such licences.
“Public resources were channelled to this illegal endeavour, when the Province finds itself in a precarious financial position and legitimate entrepreneurs are denied funding for projects.”
He indicated that even if the application was made to transfer the relevant gambling licences, it was done unlawfully as the Northern Cape Gambling board had been dissolved for seven months before and after the event.
Babuseng added that the transfer or leasing of a gambling licence was also prohibited.
“Gambling licences are not sweets to be shared among friends, but are issued to specific persons who meet certain strict criteria. A licensed racecourse cannot be rented out for a horse racing event as though it is a licensed tavern rented out for a birthday party.
“As a result, the entire event was illegal and amounts to corruption on a grand scale. Any financial or non-financial support given to the Flamingo Park race by provincial government is nothing more than support for a criminal enterprise.”
Babuseng pointed out that the MEC and officials at the Department of Finance, Economic Development and Tourism as well as officials at the Northern Cape Gambling Board had an obligation to ensure that all gambling in the Province was conducted in accordance with the laws.
“They neglected to uphold this duty by channeling public resources to fund the event, by providing non-financial support and by encouraging other stakeholders to become complicit in this illegal gambling activity.”
He stated that various charges were laid against 14 individuals, two business enterprises and one group of directors, involving financial misconduct, illegal gambling and contravention of the finance and gambling laws.
“Officials lied under oath and misled the legislature. They connived and lied in an attempt to cover up for the events management company.”
He indicated that he while he did not have direct evidence of any kickbacks that were paid over, he had requested the police to investigate a suspicious R1 million withdrawal by the events management company.
“The company was barely six months in existence when it was awarded the contract that is valid for three years and did not have any experience in hosting an event of this nature. The funding of the event this year was not mentioned in the budget and the company did not disclose whether it made any profits or losses from hosting the event last year.”
DA provincial leader, Andrew Louw, was confident that the police would thoroughly investigate the allegations.
“The investigation will reveal whether any bribes or kickbacks were exchanged and who exactly benefited. The money spent on this event could be better used for service delivery where it is most needed. The provincial coffers are not in safe hands, especially when Provincial government goes on record to support events of this nature.”
Police spokesperson, Captain Sergio Kock, confirmed that a case of corruption and other related charges were opened yesterday morning at the Kimberley Police Station.
“The investigation continues.” The events management company did not reply to media enquiries.
Spokesperson for the Department of Finance, Economic Development and Tourism, Zandisile Luphahla, stated that it was “too premature” to comment before they had received the formal charges.
Spokesperson for Sol Plaatje Municipality, Sello Matsie, welcomed any investigation.
“We can assure ratepayers that not a cent was paid towards the horse racing event. The municipality even declined a request from a farmer in the area to clear the horse dung in the surrounding area of the race course.”
He offered the full cooperation of the municipality to the authorities.
“We are more than willing to make our financial books available to the law enforcement agencies. Anyone with allegations must provide proof. We will await the conclusion of a formal judicial process. However should the allegations prove to be unfounded, consequences will follow.”