Sechaba ka’Nkosi
RACEHORSE breeder Phindi Kema’s lawyers have threatened to take the Public Protector Thuli Madonsela to court to force her to release the findings of her report into a complaint Kema lodged against JSE-listed Phumelela Gaming and Leisure.
Kema’s lawyer Jamaican-born British barrister Courtenay Griffiths, wrote to Madonsela last month charging that Madonsela’s refusal to release the report may force him to go to court to get it.
In a strongly-worded letter, Griffiths said Madonsela had been investigating Kema’s complaint for almost four years, and that the delay in releasing it was contrary to laws that were supposed to provide timely justice to citizens, who felt wronged as a result of actions of state institutions.
He said while Kema was anxious to avoid further litigation over the report, she reserved her rights to approach the courts if the report was not released.
“It would be unconscionable for her to incur further costs in pursuit of this matter and I hope that this can be avoided if possible,” wrote Griffiths.
“However, Ms Kema will not rule out such an option if it proves to be necessary in order to achieve a speedier resolution of this matter.”
Complaint
At issue is a complaint lodged by Kema and her company Africa Race Group (ARG) at Madonsela’s office on the provincial government’s decision to give away its horse racing assets for R1 in 1997, included the totes, to Phumelela following the signing of a memorandum of agreement.
In the agreement the two parties agreed to reorganise and restructure the racing industry into a single corporate structure that would be listed on the JSE.
The agreement said the Totalisator Agency Board (TAB), the Highveld Racing Authority and the existing racing clubs in the province would be incorporated into the new company.
Phumelela was listed on the JSE in June 2002.
Kema, who is the country’s first and only black racehorse breeder, challenged the agreement in 2012 on the grounds that it was improper and wanted the transaction to be reversed.
Madonsela said there was a prima facie case of malpractice and improper conduct that warranted an inquiry on whether the government had the authority to sell the assets and the processes that were followed to privatise the horse racing industry in Gauteng.
Last year Kema bolstered her complaint by submitting documents that showed that the British government sold similar assets for £180 million (R3.3 billion), £90m of which was set aside for charitable causes.
Madonsela’s office was not available for comment.
Kema confirmed the authenticity of the letter and said while she supported the office of the public protector, she was equally disappointed at the delays in realising the findings of the report.
“I believe in advocate Madonsela and the wonderful work that she and her office are doing which is why I went to them in the first place and have been patient for all this time.” said Kema.
“But I do not understand why the matter has not been resolved in the past four years and the report could have far reaching implications for the industry.”
But Griffiths argued in his letter that the provincial government committed in October 2014 to ensure that the matter was resolved cordially between itself and Kema.
“I am dismayed at your failure to reply to my letter (written on March 20), especially contrasted with the speed at which you have published many high profile reports,” charges Griffiths.
Phumelela shares on the JSE on Thursday ended down 1.1 percent at R17.05.