National Gambling Board shreds minutes of incriminating meetings

27 October 2014

On Monday 20 October 2014, the DA conducted an unannounced oversight visit to the National Gambling Board's (NGB) head office in Centurion after it was revealed that the entity had entered into a R58 million lease over 10 years. 

This works out at roughly R292 per SQM when the market rate is in fact R106 per SQM. The NGB is clearly being overcharged and this must be included in the ongoing forensic investigation of the NGB. 

We also found five boxes of shredded documents which appeared to be the agendas and minutes of the 40 "special" meetings that the board held at the Sheraton Hotel in central Pretoria. It is at these meetings where the board decided to increase its own salary by 40%. 

Not only is it apparent that the board did not comply with the corporate governance directives of King Code III during their special meetings, it also appears that they have engaged in the obstruction of justice with their shredding exercise. Those documents should have been scrutinised by the forensic investigators. 

Information suggests that the documents were shredded by the Board Co-ordinator after the portfolio committee on trade and industry requested them on 17 October 2014. 

A number of other accusations have been levelled against the NGB:

Fraud and corruption;

A R1,6 million junket to Norway by board members, some of who tried to get the entity to pay for their spouses to accompany them;

Irregular appointments, one being an HR manager at R2,2 million per year;and

The board directly trying to award a R1.3 billion tender. 

Against this backdrop, it is easy to understand why Minister of Trade and Industry Rob Davies decided to suspended the board and the DA certainly welcomes the current forensic investigation underway. 

I will write to the Minister to urge him to include the shredding of key pieces of evidence in the forensic investigation. 

The DA will continue to monitor this investigation and ensure criminal charges are brought against those responsible. We will not allow such people to be "redeployed" by the ANC to other state boards.

Statement issued by Dean Macpherson MP, DA Shadow Deputy Minister of Trade and Industry, October 27 2014

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