Hewu residents say they will not back down

BENEFICIARIES of the Zulukama Community Investment Trust, comprising 36 villages in Hewu, said they felt betrayed “by one of their own” after they were informed about the bidding for the licensing of the Queens Casino and Hotel.

Representatives have remained adamant that they will not be excluded as shareholders of the Queens Casino and Hotel. The trust owns a 4.5% share in Lukhanji Leisure which runs the casino and hotel.

Board advisor Mkululi Pakade accused Lukhanji Leisure board chairman Zolani Mtshotshisa of having gone behind their backs by bidding with a different company for the gambling licence – a bid which excluded Zulukama.

“The responses given for the exclusion are centred around our refusal to be cheated by our partners. A casino bid was submitted by another company behind the back of the Zulukama Trust. This company has Mr Mtshotshisa as a shareholder . . .”

Pakade said Mtshotshisa had a responsibility to ensure that community empowerment in the deal was a reality.

“It remains a mystery why he decided to ignore such an irregular practice which undoubtedly would have far reaching implications for him as a director and those involved.”

Chief Xhanti Zimema said if they were excluded from the licensing, the villages would stage a protest to close the casino. Zulukama Youth Cooperatives chairman Ayanda Mrwebi said losing the licensing bid could put an end to Zulukama. “If we lose our share, it will make Zulukama collapse. This is our vehicle to work towards development in our communities.”

Mtsotshisa dismissed claims and accused the management of Zulukama of being dishonest with beneficiaries.

“The orchestrator of this campaign is Pakade and Lumko Mhlauli. Mhlauli has been disqualified from participating in a casino business. Pakade is being investigated by the Eastern Cape Gambling Board and may be disqualified also. Pakade and Mhlauli are directors and shareholders of Kula which derives a substantial income from management and consultancy fees from monies flowing to the coffers of Zulukama Trust. There is a conflict of interest as both men control the bank accounts of both Kula and Zulukama.”

He claimed the bulk of Zulukama income was from government grants. “These are funds for community upliftment, not due to any special endeavours of these men. It begs the question: Why charge them fees?”

He claimed more money had gone into the trust’s coffers from the casino than had been claimed as the actual income.