6th August 2012
To: The Provincial Government
Attention: Economic development MEC
Re: Open letter to MEC Winde re: Western Cape gambling regulations and developments, and misappropriation of R5 million
Dear Mr Allan Winde
Please receive correspondence from our offices in relation to the Gambling legislation and regulations.
We are aware that there are a number of developments in relation to the gambling framework in the province that would have a bearing on the workers and the communities that we represent and have an interest in.
We have had discussions with our members and companies in this Industry and are developing our own approach to this. To finalise our emerging view on this matter we are presently procuring the relevant information that is out there. In this regard we request that you provide us with the BER report, even if you may choose to delete some confidential information that the report may contain, failure to respond or provide this by 17th August 2012 will lead to us lodging an application under the access to information act]
We further request an indication of the steps that the Provincial Government has taken to ensure that the people of the Province are not prejudiced financially, by the lack of effective management of the gambling regulations. In this regard we are aware that MEC Winde had not timeously engaged the sector in relation to the end of the exclusivity agreement, with Grand West.
The inability to address this matter has the effect that the exclusivity agreement is effectively continued for the beneficiary, but without the resultant benefits to the Province of the exclusivity tax, a matter that could easily have been remedied by an engagement with the Exclusivity agreement holder.
This means that the Province fiscus is losing in effect of R5 million per annum as a direct result of the tardiness of MEC Winde. We would however request an explanation of this and whether the Provincial Government has taken steps to address this. Should no steps have been taken to address this, we would have to call on the Public Protector to investigate, whether this was incompetence, mal administration or just tardiness on the side of the MEC.
Whatever decision is made in relation to the future of gambling in the Western Cape has to be based on an objective benefit to the citizens of Cape Town. This has to take account of the impact on employment, the contribution to the fiscus as well as the effect on the socio economic environment of the Province. We are not sure if we can trust the MEC to oversee this and would want an Industry engagement on the future of the sector in the W Cape. This would include Labour, business and Government, in a dedicated Industry discussion.
We look forward to your earliest reply.
Yours faithfully
Tony Ehrenreich
Provincial Secretary
Issued by COSATU Western Cape, August 6 2012
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