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KZN premier hauled into gaming licence dispute

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Belinda Scott
Belinda Scott

A bingo operator in Ladysmith in KwaZulu-Natal has dragged Premier Willies Mchunu to court in a bid to strip Finance MEC Belinda Scott of her powers over the province’s hugely lucrative gambling industry – allegedly because of her links with the horse racing sector.

Percy Shabalala, the owner of Poppy Ice Trading, which runs the Great Bingo casino, has served papers on Mchunu, as well as his predecessor Senzo Mchunu (no relation) and Scott in an attempt to force the sitting premier to review Scott’s gaming responsibilities – or, alternatively, review the decision to “retain her as the responsible member of the executive committee to whom that administration is assigned”.

Shabalala first wrote a year ago to former premier Senzo, asking for an investigation into Scott’s activities regarding the gaming sector.

Last month, he also wrote to new premier Willies, asking that he take action against Scott – failing which Shabalala would approach the courts to force him to do so.

The trouble started in January 2015, when Scott went to court to overturn the awarding of licences to operate electronic bingo terminals to Shabalala and other small operators by the province’s Gambling Board. However, 18 months later, her case is yet to be enrolled for argument by the court.

City Press understands that former premier Senzo, who was a co-applicant with Scott in the initial application, had withdrawn from the case – and his legal advisers wrote to Scott, suggesting that she follow suit.

In last week’s court papers, Shabalala argued that Scott was biased in favour of the horse racing industry and sidelined the big casino groups.

He charged that she had gone out of her way to oppose bingo operators, including him, who were battling for a slice of the multibillion-rand gambling industry.

He charged that, in spite of investing R20 million in his Ladysmith business site, he was unable to operate because of Scott’s “unlawful” decision to act in a manner that sought to advantage the horse racing sector over the casino industry.

By disallowing the bingo operators a share of the gambling cake, she “ignores the amusement needs of the public she purports to protect”, Shabalala claimed in court papers.

Shabalala further argued that Scott had no authority to instruct the Gambling Board not to award bingo licences, and that she had unlawfully suspended the board.

Shabalala said that Scott’s relationship with Gold Circle, the province’s premier horse racing and betting group, which was licensed by the same board, created a conflict of interest that was so great that she had broken the code of conduct for members of the provincial executive, and should be removed from office or stripped of control of the gambling portfolio.

Shabalala also claimed that Scott had failed to disclose her relationship with the horse racing industry to former premier Senzo when he appointed her as finance MEC.

He supported his allegation by saying that Scott and her husband, a breeder of thoroughbred horses for the racing industry, were members of Gold Circle.

“It follows that anyone associated with the breeding of thoroughbred horses is linked to gambling associated with horse racing. This is a clear conflict of interest,” he said.

Shabalala also accused Scott of “bias and favouritism” towards Gold Circle by appointing two of its former members, former finance MEC Peter Miller and Advocate Nigel Hollis SC, to the board. Hollis had acted as counsel for Gold Circle in its negotiations with the Gambling Board in the past.

He also acted as counsel for the People’s Forum Against Electronic Betting Terminals – a lobby group allegedly linked to Afrisun, the operator of Sibaya Casino – which was a co-applicant with Scott against Great Bingo’s licence.

Shabalala added that in 2014, the KwaZulu-Natal Bookmakers Society had written to then premier Senzo to complain about the preferential treatment accorded to Gold Circle by Scott in amendments she had initiated on gaming legislation.

He said that Senzo’s decision to retain Scott – after being informed of all the issues involved a year ago – should be interpreted by the court as “unlawful and irrational”, and asked that the court compel him to remove her or alter her powers.

Mchunu and Scott are yet to file opposing papers. Ndabe Sibiya, spokesperson for Premier Mchunu, said the premier has referred all gambling-related matters for legal advice.

Musa Cebisa, provincial treasury head of communication, said they were not in a position to comment.

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