The company that organises the prestigious Durban July horse racing event has been accused of operating without a valid licence for four years.
The KwaZulu-Natal Gaming and Betting Board is investigating whether Gold Circle Horse Racing and Betting has been operating with an expired licence after its previous 10-year licence allegedly expired in 2008.
Gold Circle has also been accused by the SA Grooms' Association of blocking transformation by not giving previously disadvantaged horse grooms opportunities to become trainers, jockeys and bookkeepers.
Gold Circle said yesterday it could not comment.
The investigation of its licence comes hot on the heels of a report by the Gambling Review Commission that found that the industry remained untransformed.
This led the Department of Trade and Industry to consider introducing legislation to regulate the transformation of horse racing. A bill to this effect is under consideration by the National Council of Provinces.
The SA Grooms' Association lodged a complaint with the KwaZulu-Natal Gaming and Betting Board on June 7, saying it would object to a Gold Circle application for a new licence.
According to its 2011 annual report, the company made R15-million net profit from the Durban July last year. It also runs the J&B Met in Cape Town.
The grooms have asked the gambling and gaming board to investigate why the licence has allegedly not been renewed.
The association also wrote to Trade and Industry Minister Rob Davies and has asked the Public Protector to investigate.
Bheki Radebe, a senior manager in the board's licensing and registration department, confirmed it was investigating the complaints.
The investigation would not, however, affect the Durban July next month, he said.
"We have just received this objection and the normal procedure is that when we receive complaints, we also inform the defendant to [allow them to] respond.
"So the Durban July will continue because the investigation would not have been concluded by then."
He said a new act had come into effect in 2011 after the provincial gambling board merged with the Bookmakers Control Committee.
Gold Circle's previous licence was administered in terms of the old act. Radebe was not immediately aware of the terms of the licence.
The gambling board previously regulated casino machines, while the Bookmakers Control Committee dealt with horse racing and betting.
"We're dealing with an operator that is assumed to have had a valid licence before the new act came into operation. Now, the benefit of the doubt is given to [Gold Circle] in the absence of conclusive evidence."
Radebe would not be drawn on questions of how Gold Circle might be penalised should it be found guilty of operating without a licence.
Raf Sheik, a manager at Gold Circle, said he could not comment as CEO Michel Nairac was out of the country until next week.
Chophilikhaya Simoto, the president of the grooms' association, said it decided to lodge its objection after the industry treated previously disadvantaged grooms "badly".
"We want companies to perform truly, fairly, honestly . without stealing the government's money and without [the] discrimination of blacks in the industry," Simoto wrote.
Macdonald Netshitenzhe, Trade and Industry's chief director of policy and legislation, said the Gambling Review Commission, which headed the transformation inquiry, had concluded its investigation and public consultations.
He said the department hoped the law dealing with transformation would come into operation in the next financial year.
"We agree that there is no transformation and hope that the National Council of Provinces will make similar recommendations."
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