Durban - Premier Willies Mchunu has bowed to pressure from the electronic bingo lobby and stripped Finance MEC Belinda Scott of her powers over the gambling industry in KwaZulu-Natal.
On taking office as political head of the province, Mchunu had faced threats of litigation from Percy Shabalala, a member of the Bingo Association of South Africa, who was unhappy at the appointment of Scott to the portfolio overseeing the KZN Gaming and Betting Board.
Shabalala wanted Mchunu to review the MEC’s reappointment to the portfolio, saying retaining Scott was “unlawful and irrational”.
The Daily News reported in August that Shabalala was taking high court action against the MEC to strip her of her powers over the gambling industry.
Shabalala is a director of Poppy Ice Trading which has a licence for 90 electronic bingo terminals, but cannot implement these because Scott had obtained a high court application to review the granting of the “irregular and illegal” licence by the former board.
Mchunu dropped the bombshell in the legislature this week where he announced he would be reallocating oversight of the board to the Office of the Premier (OTP).
His decision was made after he met industry stakeholders and they raised concerns.
Mchunu revealed to the portfolio committee on the OTP that he had been forced to move the board in the face of court action over claims that Scott had a conflict of interest.
Scott has in the past strenuously denied the claims
“As soon as I came in as premier, it was one of matters that was brought to me as an urgent matter for attention. There was to be a case to be heard in court immediately I came in. I subsequently learnt that there were four other cases,” Mchunu said.
He begun a consultative process with gambling industry stakeholders, sought legal advice and began to familiarise himself with the issues.
“They seem to be many. That consultation revealed deep animosity between the then executive authority of the Gambling and Betting Board and some members of the industry.”
Mchunu said he had been asked by those aggrieved with Scott why he had reappointed her over the board. “I have no reason not to. She was not new,” he said.
“Then I was taken to court to answer whether she was conflicted in the position. I made some enquiries and spoke to her,” he said.
“I had a reason to believe if she is in that position she will always be attacked; always suspected of being conflicted. I decided in order to stabilise the industry it was much better to take the task from her back to my office.
“I did that after consulting everybody. There was no objection,” Mchunu said.
He also said some stakeholders who indicated they did not object had since indicated they wanted to engage him.
“I said fine. All I intend doing is to stabilise the processes and functioning in respect of the gambling and betting.”
He said he was pleased there had been no objection to his decision to relocate the board, but the move might not be permanent.
“I will still have to discuss it, especially within the cabinet. The board has in the previous terms of past premiers been located in the OTP except when former premier, Senzo Mchunu, moved it to the Treasury.”
In other provinces, the board - a revenue-generating entity - was attached to the economic development portfolio.
“I am going to look at pros and cons. After stabilising, I may have to reassign it after careful consideration,” Mchunu said.
On Wednesday, stakeholders in the gambling and betting industry and others welcomed Mchunu’s decision.
Shabalala said he would comment when Mchunu made a public announcement.
Lawrence Smith, chairman of the Bingo Association of South Africa, said: “We are delighted by the premier’s decision to move the portfolio to the OTP.”
Smith, among stakeholders who met Mchunu, said they felt Scott had not dealt with matters facing the industry.
“She made a lot of promises in the last two years and did not deal with outstanding issues. We feel we have been badly treated by the MEC, hence the questions on her integrity,” he said.
Sean Coleman, chief executive of South African Bookmakers Association, said they supported the decision.
“We believe it is an appropriate move as the ethics code deals with risk of conflict,” Coleman said.
However, he said they wanted an audience with Mchunu over Scott’s hold over the industry because she was still overseeing the industry’s taxation.
“He should take taxation as well,” Coleman said.
Daily News