Flamingo Park Race 2017: NCape was racing to commit a crime

by Adv Boitumelo Babuseng, MPL – DA Provincial Spokesperson for Finance, Economic Development & Tourism

Error! Filename not specified.

Date: 08 March 2018

Release: Immediate

Note to Editors: Please find the full briefing on the Flamingo Park Race charges here. Photos can be viewed here, here and here.

Introductory remarks
The Democratic Alliance has today laid 89 criminal charges against parties in the provincial and local government for their involvement in the illegal gambling activity known as the Flamingo Park Race event of August 2017.

This event constituted nothing more than yet another illegal escapade proudly sponsored by the provincial government, including the very parties who are meant to prevent and eradicate illegal gambling in the province. Public resources were channeled to support an illegal endeavor at a time when the province finds itself in a precarious financial position and while legitimate entrepreneurs are denied funding for projects which can actually stimulate economic growth in the province.

The Democratic Alliance has therefore brought these charges to ensure that office bearers, government officials and persons in the private sector alike are held criminally liable for their complicity in illegal gambling, acts of financial misconduct, acts of corruption and possible misrepresentations to the Northern Cape Provincial Legislature.

We are confident that convictions will follow if the charges are investigated thoroughly.

Flamingo Park Race 2017: Just an illegal gambling event
The core of the matter is that Bosco Sports Event Management as host of the Flamingo Park Race event of August 2017 was not in possession of the required gambling licenses, employee licenses and employment certificates at the time of the event. In fact, as the sole director of this events management company is a public servant, national and provincial legislation prevents him from holding such licenses or from having a financial interest in such licenses!

The involvement of Phumelela Gaming and Leisure Limited as a company duly authorized to conduct horse racing in the province and the hosting of the event at the Flamingo Park Racecourse in Kimberley is simply not sufficient to correct this serious illegality. Both national and provincial law restricts the transfer or leasing of licenses. Gambling licenses are not sweets to be shared among friends, but are issued to specific persons who meet certain strict criteria. One cannot rent out a licensed racecourse for a horse racing event as though it is a licensed tavern rented out for a birthday party.

As a result, the entire event was unlicensed and unlicensed gambling is illegal. Any financial or non-financial support given to the Flamingo Park Race by the provincial government, the Sol Plaatje Local Municipality and the Northern Cape Gambling Board is nothing more than support of a criminal enterprise.

It is the utmost irony that the same parties tasked with the prevention of illegal gambling not only allowed this event to go ahead, but lobbied other roleplayers in the provincial government for additional support. The MEC for Finance, Economic Development & Tourism, officials at the Northern Cape Gambling Board and officials at the Department of Economic Development & Tourism have a clear duty to ensure that all gambling in the province occurs within the prescribed legal framework. They neglected to uphold this duty by channeling public resources to fund the event, by providing non-financial support and by encouraging other stakeholders to become complicit in this illegal gambling activity.

We cannot allow the provincial government to turn itself into an illegal gambling den.

Summary of charges: A minimum of 86 charges against 14 individuals, 2 business enterprises and 1 group of directors

The actions of the MEC for Finance, Economic Development & Tourism as well as senior management officials at the department of Economic Development & Tourism and the Northern Cape Gambling Board created a veneer of legality for this otherwise illegal event. This illusion of legality encouraged other stakeholders in the provincial administration to support the Flamingo Park Race event. It would, however, be vindictive to pursue charges against those who simply acted in accordance with the sincere belief that the Flamingo Park Race event was held in accordance with all legal requirements. We therefore will not be seeking criminal charges against the Northern Cape Tourism Authority or the Office of the Premier.

The charges brought by the Democratic Alliance include:

• Eight charges against the Hon Mac. Jack as MEC for Finance, Economic Development & Tourism relating to complicity in illegal gambling and breaches of the law governing the management of public funds;
• Nine charges against Mr. Darius Babuseng as former acting head of the department of Economic Development & Tourism relating to complicity in illegal gambling and acts of financial misconduct constituting a criminal offence in terms of the Public Finance Management Act;
• Three charges against Mr. Kuberin Packirisamy as Chief Financial Officer of the department of Economic Development & Tourism relating to acts of financial misconduct constituting a criminal offence in terms of the Public Finance Management Act;
• Six charges against Mr. Darryl Christians as the Executive Manager for Small Business Development at the department of Economic Development & Tourism relating to complicity in illegal gambling activities as well as acts of financial misconduct constituting a criminal offence in terms of the Public Finance Management Act;
• Six charges against Adv. Prince Olivier as the Executive Manager for Business Regulation & Governance at the department of Economic Development & Tourism relating to complicity in illegal gambling as well as acts of financial misconduct constituting a criminal offence in terms of the Public Finance Management Act;
• Fifteen charges against Ms. Lesego Seametso as the former acting Chief Executive Officer at the Northern Cape Gambling Board relating to complicity in illegal gambling, acts of financial misconduct constituting a criminal offence in terms of the Public Finance Management Act and misleading the Northern Cape Provincial Legislature in contravention of the Northern Cape Legislature Witness Act;
• Six charges against Ms. Tebogo Sitsili as acting License Manager at the Northern Cape Gambling Board relating to complicity in illegal gambling;
• Six charges against Mr. Selogilwe Shebe as acting Compliance Manager at the Northern Cape Gambling Board relating to complicity in illegal gambling;
• Six charges against Mr. W.A. Jacobs as acting Compliance Manager at the Northern Cape Gambling Board relating to complicity in illegal gambling;
• One charge against Mr. Tshepo Mengo as employee in the department of Economic Development & Tourism for misleading the Northern Cape Provincial Legislature in contravention of the Northern Cape Legislature Witness Act;
• Twelve charges against Mr. Collin Bosman as the sole director of Bosco Sports Event Management relating to corruption, complicity in illegal gambling and breaches of the Municipal Finance Management Act;
• Nine charges against Bosco Sports Event Management as juristic person for complicity in illegal gambling;
• Two charges against Mr. Zweli Mguza as employee at the Sol Plaatje Local Municipality relating to corruption;
• One charge against the directors of Phumelela Gaming and Leisure Limited relating to complicity in illegal gambling;
• One charge against Phumelela Gaming and Leisure Limited as juristic person relating to complicity in illegal gambling;
• Either four charges relating to acts of financial misconduct constituting a criminal offence in terms of the Municipal Finance Management Act or one charge of corruption against Mr. Goolam Akharwaray as municipal manager of the Sol Plaatje Local Municipality;
• One charge against Ms. Zuziwe Lydia Mahloko as Chief Financial Officer of the Sol Plaatje Local Municipality relating to acts of financial misconduct constituting a criminal offence in terms of the Municipal Finance Management Act.

It must be emphasized that these charges are neither political nor personal in nature. We are not playing politics or punishing officials for petty reasons. We were given a mandate by the voters of this province to monitor the spending of public funds and we are constitutionally obligated to hold the executive to account. It is, to our knowledge, the first time that criminal charges have been laid against government officials who willfully attempted to mislead the Legislature and this alone should serve as a very clear sign that we mean business when it comes to holding the executive to account.

We are also investigating the laying of further criminal charges in relation to similar events held elsewhere in the province which also constituted nothing more than illegal gambling activities.

We cannot allow a status quo where illegal gamblers profit from the abuse of public funds.