The KwaZulu-Natal Gaming and Betting Board must be held to account for defying and violating instructions from the treasury, the DA in the province said on Tuesday.
This comes after the entity, which falls under the provincial department of economic development, tourism, and environmental affairs, lodged a failed court case against horseracing giant Gold Circle.
The matter stemmed from the entity’s refusal to pay a 3% share of winners to Gold Circle.
“The DA has written to economic development, tourism, and environmental affairs MEC, Reverend Musa Zondi, to request a detailed breakdown of legal costs incurred as a result of Gold Circle’s successful court challenge against KwaZulu-Natal’s Gaming and Betting Board,” Hannah Lidgett, the DA’s member of the provincial legislature, said.
“The critical question remains: where will this funding come from? KZN’s taxpayers cannot be left to foot the bill for the department’s mismanagement.
“This expenditure will also have a direct impact on our province’s finances and cannot be taken lightly.”
Transparency and accountability
The party further pointed out that it expected Zondi to provide an exact breakdown of legal costs.
“As part of KZN’s government of provincial unity, the DA will continue to demand transparency and accountability as we work towards building our province in the best interests of all its people,” she said.
In a letter seen by Sunday World and addressed to Zondi, Lidgett called for immediate action.
“It has come to our attention that, despite the treasury’s advice that the tax revenue be rightfully paid to Gold Circle, the department proceeded with withholding the funds.
“This decision resulted in a legal dispute, and as the department has now lost the court case, there is concern regarding the financial implications of this legal challenge for the provincial government and taxpayers.”
She also wants Zondi to provide a full disclosure of the legal expenses incurred during the litigation process and where the funds to pay for legal expenses will be sourced from.
Personal costs order
Gold Circle launched a court application on an urgent basis seeking an order directing the board to effect distribution to it, alternatively to the KwaZulu-Natal provincial treasury, of the 3% tax deduction from the amount won by bettors in respect of fixed-odds bets on horse races placed with a bookmaker.
This related to all premises and racecourses operated by Gold Circle.
The application also applies to all premises other than a racecourse in respect of horse races staged by Gold Circle, as provided by Section 128 of the Gaming Act.
The horseracing giant also sought a personal costs order against the members of the board.
